(MENAFNEditorial) GCC petrochemical companies must increase their investment in research and development in order to remain competitive, urges the Gulf Petrochemicals & Chemicals Association (GPCA).
"Producing petrochemicals is a highly technical business dependent on science and technology," said Dr. Abdulwahab Al Sadoun, Secretary General of the GPCA, who will receive more than 1,700 delegates from 50 countries at the 8th GPCA Annual Forum in Dubai from November 19-21.
"Investment in research and development and patent grants is a key indicator of national development and essential if the regional petrochemicals sector is to maintain its competitive edge over other producers."
According to the latest GPCA research, the chemicals industry spent US$49 billion on R&D last year, a 10% increase in spending compared with 2011. Investments from European and American companies accounted for nearly half of that amount. Additionally, the chemical industry filed nearly 200,000 patents in the same period.
GCC petrochemicals producers spent US$380 million on R&D in 2012, less than 1% of the global industry total. In the same year, Gulf-based chemicals companies filed an estimated 750 patents or 0.4% of the overall number globally.
"These figures underscore the urgent need to increase spending on R&D in the Gulf states," said Dr. Sadoun. "We must focus on research and development, and more importantly, develop strategies for innovation that will increase the product and cost competitiveness of the GCC petrochemicals sector."
The global petrochemicals industry is in a state of flux, warns Dr. Sadoun. Shale gas developments in the United States may see the country become self-sufficient in energy by 2030.
"Innovation is no longer a luxury but an absolute necessity for the GCC petrochemicals industry," he said. "Without it, the Gulf's chemicals producers will not be able to compete with global players."
Held on the theme of "Innovation: The Foundation for Chemical Value Chain Leadership", the GPCA will host its 8th Annual Forum from November 19-21 at Madinat Jumeirah in Dubai. The plenary address will be delivered by His Royal Highness Prince Abdulaziz bin Salman Bin Abdulaziz, Saudi Arabia's Deputy Minister of Petroleum and Mineral Resources.
High-level speakers include senior executives from ExxonMobil Chemical Co., LyondellBasell, Dow Chemical and Borealis, who will provide insights into the role of innovation in the current business context.
The conference will also include two seminars by IHS and Booz & Company, specifically, innovation in the era of shale gas and coal, and how feedstock disruptions necessitate innovative solutions.
For more information on the 8th GPCA Annual Forum, visit http://gpcaforum.net
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