Catalyst

The Second Annual Gulf Petrochemicals and Chemicals Association (GPCA) Forum has attracted more than 750 delegates, a big increase on the 450 delegates who attended the first meeting, says GPCA chairman Mohamed Al-Mady, who is also vice chairman and CEO of Saudi Basic Industries Corp. (SABIC). “I am proud of the progress GPCA has made in its short history,” Al-Mady said in his opening remarks to the forum in Dubai today.
Al-Mady, also in his opening address, expressed concern about rising project construction costs in the Middle East. “This, I believe, is of great concern as capital costs for new projects have gone through the roof,” he says. “It makes it difficult to achieve acceptable financial targets when capital costs have risen so much. I believe this will lead to some project delays and probably some cancellations over the next few years. In time, this bubble will deflate, as it is not sustainable at present levels,” Al-Mady says.
The petrochemicals and chemicals sector is approaching a period of overbuilding accompanied be weaker markets. “Our industry has experienced these periods of overcapacity and slow growth numerous times in the past and has worked through them successfully and emerged stronger,” Al-Mady says. “I am certain we will do so once more.”