The region is home to the world’s major oil producers, who have recently adjusted their production due to high crude prices.

Brent crude rose in early November to a three-year high at over $ 86 a barrel.

Saudi Arabia, which is the world’s largest oil producer, accounts for around 15% of global crude production and is the de facto leader of the OPEC oil cartel.

“The increase in oil production combined with the improved oil price outlook increases tax revenues in the region, as hydrocarbons generate significant revenues for the GCC,” said the GPCA.

“That, combined with strong economic and manufacturing activity in China, which is the largest export market for the GCC, the GPCA predicts a healthy outlook for the GCC chemical and petrochemical market, which will spill over into 2022,” a- he declared.

However, delays and disruptions in the supply chain are likely to persist, leading to an increase in the cost of commodities, including some of the major raw materials in the chemical industry.

“With the rise in oil prices, commodity prices are expected to remain high and margins decline,” the GPCA said.

The region’s chemical industry is emerging from a period of significant disruption, moderate growth and unprecedented decline in consumer demand in various end-user sectors, said GPCA Secretary General Abdulwahab Al-Sadoun .

“The Persian Gulf region is now entering a gradual recovery that will require it to maintain its resilience and maintain high production in order to meet end-user markets at home, in Asia and around the world,” he said. declared.

“Beyond maintaining operational and supply chain resilience, the next big imperative for GCC producers will be to achieve their sustainability goals, including reducing emissions, investing in technologies. innovative, creating partnerships throughout the value chain to reduce their environmental footprint and that of their products. , and advance the plastic recycling program, ”Al-Sadoun added.

The annual GPCA forum on the theme “Redefining. Reshape. Reinvent. The Chemical Industry in a Post-Pandemic Reality ”will take place December 7-9 in Dubai, United Arab Emirates.