(MENAFN- Emirates News Agency (WAM))
DUBAI, 27th November 2017 (WAM) - Chemical industry in Arabian Gulf countries registered USD 77 billion in revenues in 2016, three percent less than the previous year due to fluctuation in international oil prices, an official said Monday.
Kuwait News Agency (KUNA), quoted Dr. Abdulwahab Al-Sadoun, Secretary General of the Gulf Petrochemicals and Chemicals Association (GPCA), as saying chemical industries in the Gulf Cooperation Council contributed around USD 43.8 billion to the GCC economies in 2016, or 29 percent of manufacturing industries.
Al-Sadoun said production of chemicals increased by 8.5 percent in 2016 to reach 158.8 million tons.
Chemical industry's contribution to the manufacturing industries in Saudi Arabia grew from 23 percent in 2015 to 27 percent last year, making the Kingdom the GCC's largest chemicals producers with over two-thirds of total GCC output.
The United Arab Emirates (UAE) came second with 17 percent, then Qatar with five percent, each of Kuwait and Oman with four percent and then Bahrain with two percent.
The chemical industry provides more than 152,000 jobs in the six GCC countries, said Al-Sadoun.
Asked by KUNA about oil prices' influence on petrochemicals' industry, Al-Sadoun said the competition has been fierce with production of shale oil.
However, the petrochemical products maintained their prices and they were subjected to supply and demand, he said.
Al-Sadoun meanwhile said introduction of the Valued Added Tax (VAT) in the GCC countries would have "very limited" impact on petrochemical industries.
GPCA represents the downstream hydrocarbon industry in the Arabian Gulf.
Established in 2006, GPCA voices common interests of more than 250 member companies from the chemical and allied industries, accounting for over 95 percent of chemical output in the Gulf region.
The industry makes up the second largest manufacturing sector in the region, producing over USD 108 billion worth of products a year.
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