Already a global force to be reckoned with, the Middle East's chemical and petrochemical sector is on the brink of a new era of investment and expansion. The GCC already produces 30 of the most common intermediate petrochemical products, representing 7 percent of worldwide production. This is set to increase to 20 percent of global output by 2010, with Saudi Arabia accounting for almost half of that increase. The UAE is investing heavily in its petrochemical industry, and will see capacity increase threefold, opening up new opportunities in the downstream and end-use processing sector. An estimated $40 billion in new investments is expected in the GCC chemical and petrochemical sector, including non-oil products such as polymer resins, polystyrene and liquid industrial chemicals, by 2010. According to Abdul Rehman Falaknaz, president of International Expo Consults (IEC), organizers of CHEM Middle East exhibition, this is just the start of a period of rapid growth for the region's chemicals sector. “With petrochemical facilities in Europe and the US facing cutbacks due to increasingly high prices and shortage of feedstock, the Gulf countries have emerged as the world's first choice for new facilities and best choice for investment in this industry,” Falaknaz said. The decision of where to locate a new complex is an important one for petrochemical companies. The major staging ground in recent years has been the Middle East, and there seems to be valid reason for international companies to locate facilities in this area. “The continuing expansion and growth in the Middle East has resulted in a need for more sophisticated logistics and supply chain processes to distribute more than 40 million tons of petrochemicals and plastics to over 70 countries on a plant-to-customer basis,” he noted. “For the next 10 years at least the Middle East will continue to have an edge over others. Beyond that, new technologies may change the way we produce polymers and petrochemicals. Economics will ultimately decide the future,” he added. CHEM Middle East exhibition takes place on May 18-20 at Dubai World Trade Center. The international trade event for the chemical, petrochemical and chemical process industries will feature leading international companies and associations from over 20 markets, including China, Korea and Germany. China's Sunchem group will be joining the China Pavilion at CHEM Middle East to promote its petroleum resin products to the Middle East. “I see the Middle East as a potential future market for our company. At present, we sell around 10 percent to Middle East, but we want to expand this to 30 percent in the future,” said Sun Chang Dong, managing director, Sunchem Group (H.K.) Company Limited. Australia-based Cyndan Chemicals is using CHEM Middle East to showcase its new soda blasting technology. The Middle East already accounts for 35 percent of the company's total global turnover. Michael Snounou, Business Development Manager, Cyndan Chemicals, predicts an increase in secondary chemical production. Cyndan recently won a contract tender to supply the biggest ship yard in Korea with its rust product, while its New Zealand partner won a restoration project for Auckland City Council, to clean and seal the streetscapes in the city. Italy's Debem Srl is looking for a distributor at CHEM Middle East this year. “At the moment, the Middle East market is not well developed in our company. We consider it as a very important business opportunity and that is we want to develop it more,” said Paola Di Vita, Sales Manager, Debem Srl. This year's show will see two new sections: Process Technology and Heat and Cooling Technologies, as well as an informative seminar schedule. Dubai Techno Park free zone and RAK Free Trade Zone will also be participating in the show. CHEM Middle East is supported by ASPRI (Association of Process Industry) Singapore and GPCA (Gulf Petrochemical & Chemical Association) UAE. __
