GCC petrochemical companies are amongst the lowest cost manufacturers in the world owing to cheap feedstock and energy costs. Given their strategic location and development as a major transportation hub, GCC petrochemical producers enjoy a huge competitive advantage over others.
Over the next few years, GCC countries will strive hard to prove their dominance in the petrochemical sector in an effort to diversify their economies away from Oil & Gas revenues. Development of large scale petrochemical complexes will serve the dual purpose of diversification as well as employment generation, according to a report by Kuwait Financial Centre (Markaz).
Petrochemical prices saw an uptrend in the first half of 2011 in line with the increase in oil prices. However, prices declined during the second half on concerns of Euro zone debt problems spiraling to other regions, which resulted in lower demand.
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