Gulf region: New investments in petrochemical sector to hit $40 million
The new investments in the petrochemical sector in the Gulf region is expected to hit $40 billion by 2010, according to a recent report.
The report, issued by the Kuwaiti Industries Union said Sunday that the proximity of the Asian markets to the Middle East gives the investors in those markets a strong incentive.
Cited by Kuna, it added that the rapid growth of the Asian markets, especially the Chinese and Indian ones, makes them leading sources in the petrochemical industry worldwide. The report pointed out that there is a shortage of polyethylene expected in the Chinese market this year that would reach 4.5 million tons, where Kuwait's production of this plastic is 450,000 tons.
The report stressed that there are major unexploited opportunities that should be used by Kuwaiti companies through increasing and developing the production through establishing scientific research centers and seeking the assistance of the scientific institutions.
According to industrial assessments, the Middle East's production of polyethylene will total 18 million meter-tons by 2010, which is about 15 percent of the world's production. Kuwait's total polyethylene production is 650,000 meter-tons annually, whereas Saudi Arabia's production is about 2.3 million meter-tons per year.