New petrochemical complexes are emerging, and existing plants and infrastructure are being upgraded or expanded in the Middle East- an indictation of the buoyant market conditions resulting from high oil prices. The high price of crude oil has given regional petrochemicals firms an increased competitive edge, prompting the world's top industry players to increase their interest and presence in the region. The world's largest hydrocarbons reserves in this region ensure access to plentiful and cheap gas feedstock, giving producers a natural edge. The region's proximity to India and China, where demand growth for petrochemical products is highest, is another advantage, particularly over European producers.
The GCC's growth, estimated to account for upto 20% of the world's ethylene capacity by 2010, is led by Saudi Basic Industries Corporation (SABIC). Annual ethylene production in the region, led by Saudi Arabia, Qatar, Abu Dhabi, Kuwait and Iran, will rise to 23 million tons in the next five years, accounting for 20% of global capacity. Saudi Arabia is estimated to produce 14.5 million tons in 2010.
14-Nov-05 
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