Investments in GCC chemical sector crossed $140 billion in the first 10 months of 2019 led by consolidation and joint venture agreements, according to the Gulf Petrochemicals and Chemicals Association (GPCA).
The multi-billion-dollar investments in the areas of refining, petrochemicals, distribution, storage supported by strategic partnerships between regional and multinational players indicate a strong year for M&A deals and a renewed drive by regional producers to consolidate their business, it added.
“The recent series of joint ventures, consolidation deals and acquisitions demonstrate the role of partnerships in the industry’s future strategic direction and continue to build on the region’s reputation as a reliable, long term partner in the global chemical arena,” said Dr Abdulwahab Al-Sadoun, secretary general, GPCA.
"These developments will result in greater competitiveness in the regional chemical industry by enabling it to leverage economies of scale, accelerate innovation and greater market leadership. We can expect to see more of these large-scale alliances across the entire value chain, built on strong and stable platforms of leading-edge technologies between partners from across the board.”
The 14th annual GPCA Forum will be held in December in Dubai and is expected to attract over 2,100 international and regional chemical executives.
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