Natural abundance in feedstock has made the Middle Eastern region the emerging leader in the global petrochemical scenario. Despite the present progress and prosperity of the Middle East petrochemical industry, challenges lie ahead, threatening the industry's future. Long term stability calls for the resolution of economic issues to qualify for membership in the World Trade Organization (WTO); increased investment for research and technology; development of human resources; business cultures that encourage innovation; and inter-regional industrial cooperation for success in the global marketplace.
Oil-producing countries in the Middle East are facing problems regarding the export of downstream products to, as well as establishing a market share in, the developed countries. The largest problems are anti-dumping measures and trade protectionism through high customs duties. For the Middle East petrochemical industry to succeed in establishing a solid market share in the global market, the issues preventing the countries from gaining full membership in the World Trade Organization need to be resolved. This will require some bold economic measures. Saudi Arabia and Algeria are still on 'observer negotiating entry' status in the WTO, and Iran and Libya have pending requests for association.
The current attitude of the Middle East petrochemical producers is to purchase off-the-shelf technology. This calls for a change in the future, and they will need to invest in Research & Technology to ensure continuation of the highest, state-of-the-art production facilities. The operating units need to develop knowledge in terms of know-how and expertise. In addition to training, a business culture needs to be cultivated to encourage innovation and reward individual initiative.
The Middle East petrochemical producers need to foster a sense of fair competition among themselves to will help all producers compete effectively in the global marketplace.
16-May-05 
