(MENAFN- Gulf Times) GCC chemical producers are investing heavily in environmental technologies with an estimated $486mn environmental investments up to 2027, according to Gulf Petrochemicals and Chemicals Association (GPCA).
In terms of environmental progress, the GCC chemical industry achieved an 11.7% reduction in CO2 intensity, a 2% decrease in greenhouse gas (GHG) emissions, and an 87.9% reduction in wastewater discharge over the past decade, GPCA said in a report.
The regional industry's high capacity utilisation at 93%, surpassed global peers (75-81%), reflecting operational efficiency.
The region has a $6.5bn R&D investment pipeline until 2028, though R&D intensity (0.5%) remains below the global average (0.8%).
The GCC chemical industry accounted for 6% of global petrochemical production capacity, with 74% of its output directed to international markets.
The chemical industry contributed 33% to total GCC manufacturing GDP and 4% to total GCC GDP, serving as a key economic driver in the region.
While export volumes fell by 9.3% and export values dropped by 27.7%, the region maintained a competitive advantage with an 8.3% cost reduction in ethylene production and Saudi Arabia ranking 9th globally in chemical revenue.
Total employment grew by 18.8%, with a 94% retention rate, while progress in diversity and inclusion continued across the region with a 4.1 % women's participation rate, GPCA noted.
According to GPCA, global events have reinforced the need for the GCC petrochemical industry to remain agile and proactive.
Whether it be navigating geopolitical risks, capitalising on supply gaps left by European closures, or adapting to China's growing influence, the sector continues to innovate, diversify and strengthen its trade relationships to thrive in an ever changing global environment.
The GCC petrochemical industry stands at the cusp of a pivotal inflection point, where operational resilience meets transformative challenges.
The sector's performance demonstrates its fundamental strength, maintaining a 93% capacity utilisation rate against global averages of 75-81%, while contributing 33% to regional manufacturing GDP in 2023.
Looking ahead, GPCA noted the GCC chemical sector will strengthen its position in global chemical value chains by expanding beyond its traditional advantages.
The next phase will be characterised by an increased focus on sustainable solutions, speciality chemicals, and high-value products, enabled by digital technologies, advanced recycling capabilities, and low-carbon production processes.
Trade patterns will also shift as new agreements with Asian economies mature and European markets undergo restructuring.
For industry leaders, this transformation demands careful orchestration of investments, capabilities, and partnerships to balance short-term operational excellence with long-term strategic imperatives.
“The choices made in the next few years will determine the industry's position in an increasingly complex and sustainable global chemical market,” GPCA noted.

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