2.1 Contribution of the Petrochemicals Sector to Regional and Ational GDP

7/28/2019 2.1 Contribution of the Petrochemicals Sector to Regional and Ational GDP

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6 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

8.9%contribution of manufacturingsector to GCC GDP in 2011

17%contribution of petrochemicals

to the manufacturing sectors

share in 2011 GDP

7.5%year-on-year growth of RealGDP in the GCC in 2011

s '##ECONOMIESAREDOMINATEDBYOILGASSECTORWHICHCONTRIBUTEDTOTHE'##'$0

IN4HEREVENUEFROMOILGASHASBEENPROVIDINGANENORMOUSBOOSTTOTHERESTOFTHE

economy via government spending.s 7ITHINNONOILINDUSTRYMANUFACTURINGSECTORSCONTRIBUTEDTOTHEREGIONAL'$0'##

manufacturing sector leverages regions hydrocarbon reserves through oil refining and

petrochemicals which accounted for 2.1% and 1.5% of the 2011 regional GDP respectively.

s 7ITHINTHEMANUFACTURINGSECTORPETROCHEMICALSSHAREGREWRAPIDLYFROMINTO

INASARESULTOFTHENEWPROJECTSBEINGBUILTANDCOMMISSIONED

Petrochemicals sector contribution to the GDPis growing

2.1 Contribution of the petrochemicals sector to regional and national GDP

20.4% 18.7% 21.3%22.5% 23.5%

13.9% 17.3% 15.6%16.5% 17.0%

65.7% 64.0% 63.1%60.9% 59.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011

Other manufacturing Petrochemicals and chemicals Refining sector

ContributiontoManufacturing(%)

GCC countries: Contribution of sub-sectors to manufacturing GDP (%)

Source: GCC National statistical authorities and GPCA analysis, 2012

50.6%

5.4%

7.1%

4.9% 10%

11.9%

8.9%

1.2%

Crude Petroleum & Natural Gas

Finance, Insurance,

Real Estate & Business Services

ConstructionOthers

Wholesale & Retail Trade,

Restaurants and Hotels

Agriculture,Forestry & Fishing

Transport, Storage &

Communication

Manufacturing

Refining sector 2.1%

Petrochemicals and

chemicals 1.5%

Other

manufacturing 5.3%

GCC Countries: Contribution to GDP by main activities (% GDP, 2011)

Source: GCC National statistical authorities and GPCA analysis, October 2012


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7Gulf Petrochemicals & Chemicals Association

7.1%year-on-year growth of Real

GDP in Saudi Arabia in 2011

5.5%non-oil Real GDP growth in

Saudi Arabia in 2011

11%contribution of petrochemicalssector to manufacturing GDPin 2011

50.1%

4.3%

5.2%

3.4%7.5%

17.2%

9.8%

2.5%


Petrochemicals andchemicals 1.1%

Other

manufacturing 5.5%


Finance, Insurance,

Real Estate & Business Services

Construction

Others

Wholesale & Retail Trade,

Restaurants and Hotels

Agriculture,

Forestry & Fishing

Transport,Storage &Communication

Manufacturing

Saudi Arabia : Contribution to GDP by main activities (% GDP, 2011)

Source: Saudi Arabia Central Department of Statistics and Information and GPCA Analysis, 2012

s 3AUDI!RABIAISTHELARGESTECONOMYINTHE'##ACCOUNTINGFOROFTHE'##'$0s 4HEPACEOFECONOMICEXPANSIONINREACHEDANDTHENONOILECONOMYGREWBY

THEHIGHESTSINCE

s %CONOMICDEVELOPMENTOF3AUDI!RABIAISMARKEDBYTHEMAJORROLEOILGASSECTORISPLAYING

in generating GDP and financing government expenditure. In order to decrease reliance on

oil, the Saudi government focused on economic diversification centered on manufacturing

sector which include oil refining and petrochemical production.

s )NMANUFACTURING'$0ACCOUNTEDFOROF3AUDI!RABIAS'$0/FTHISTHEOIL

RElNINGSECTORCONTRIBUTEDANDTHEPETROCHEMICALSSECTORCONTRIBUTED

2.1.2 Contribution of the petrochemical sector to regional and national GDP

Petrochemicals accounted for 11% of SaudiArabias manufacturing sector contribution to2011 GDP

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011

Source: Saudi Arabia Central Department of Statistics and Information and GPCA Analysis, 2012



33.7% 31.3% 31.7% 34.0% 34.0%

10.5% 12.0% 10.6%11.0% 11.0%

55.8% 56.6% 57.7% 55.0% 55.0%

Saudi Arabia: Contribution of sub-sectors to manufacturing GDP (%)


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7.4%contribution of

manufacturing sector to

GCC GDP in 2011


GDP in the UAE in 2011

18.2%contribution of

petrochemical sector tomanufacturing GDP in 2011



Other

manufacturing 5.4%

35.5%

9.7%

12.5%

7.4%

14.5%

12.2%

7.4%

0.8%


Finance, Insurance,

Real Estate

& Business Services

Construction

OthersWholesale &

Retail Trade,

Restaurants

and Hotels

Agriculture,

Forestry & Fishing


Communication

Manufacturing

UAE: Contribution to GDP by main activities (% GDP, 2011)

Source: UAE Statistical Bureau, Abu Dhabi Statistical Department and GPCA Analysis, 2012

s 5!%ECONOMYISTHESECONDLARGEST'##ECONOMIESAFTERTHE3AUDIECONOMY!FTERTHEECONOMICCRISIS5!%ECONOMYISGRADUALLYRECOVERINGACHIEVINGGROWTHRATEOFA2EAL

GDP in 2011.

s 5!%ECONOMYMANAGEDTOGRADUALLYMOVEAWAYFROMBEINGOILBASEDECONOMYTODIVERSIFYTO

NONOILMANUFACTURINGANDSERVICESECTORS.ONOILSECTORACCOUNTEDFOROFTHE5!%S

'$0INWITHMANUFACTURINGSECTORREPRESENTING

Petrochemicals sector accounted for 18.2% ofthe manufacturing sectors contribution to theUAE GDP in 2011



UAE: Contribution of sub-sectors to manufacturing GDP (%)

7.0% 7.2% 8.9% 8.9% 9.5%

11.2% 11.5%

17.1% 17.2% 18.2%

81.8% 81.4%74.0% 73.9% 72.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011

ContributiontoManufactuiring(%)

Source: UAE Statistical Bureau, Abu Dhabi Statistical Department and GPCA Analysis, 2012


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GDP in Qatar in 2011

25.8%contribution of petrochemicalssector to manufacturing GDP

in 2011

10%to Qatar GDP in 2011

Manufacturing

contributed

s "ETWEENANDWITHTHEDEVELOPMENTOF/IL'ASACTIVITIESIN1ATARITS'$0GREWAT#!'2OF)NALONE1ATARS2EAL'$0GREWBYYEARONYEAR1ATARIS

worlds largest exporter of liquefied natural gas (LNG) accounting for a quarter of LNG exports

WORLDWIDE%XPANSIONINTHEPRODUCTIONOFGASRELATEDPRODUCTS,.'ANDCONDENSATES

COUPLEDWITHINCREASESINHYDROCARBONPRICESRESULTEDIN/IL'ASCONTRIBUTIONTOTHE

GDP in 2011.

s "ESIDES/IL'ASSECTOR1ATARSECONOMICGROWTHHELPEDTOMAKESIGNIlCANTINVESTMENTSIN

DEVELOPINGNONOILSECTORWHICHRESULTEDININCREASINGECONOMICRETURNSFROMMANUFACTURING

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SECTORGREWAT#!'2OFBETWEENAND.ONOILSECTORSCONTRIBUTEDTO

THE'$0OF1ATARIN-ANUFACTURINGSECTORCONTRIBUTEDTOTHE2EAL'$0

Petrochemicals accounted for 25.8% of themanufacturing sectors contribution to QatarGDP in 2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2007

13.4%

26.3%

60.3%

2008

16.6%

32.6%

50.8%

2009

10.5%

20.6%

69.0%

2010

12.4%

24.4%

63.2%

2011

13.1%

25.8%

61.1%

ContributiontoManufactuiring(%)

Qatar: Contribution of sub-sectors to manufacturing GDP (%)

Source: Qatar Statistic Authority and GPCA Analysis, 2012



Petrochemicals and

chemicals 2.6%

Other

manufacturing 6.1%

57.7%

3.7%

5.5%

3.4%

11.6%

8.0%

10%

0.1%Crude Petroleum & Natural Gas

Finance, Insurance, Real Estate

& Business Services

Construction

Source: Qatar Statistic Authority and GPCA Analysis, 2012

Others

Wholesale & Retail Trade,Restaurants and Hotels

Agriculture,

Forestry & Fishing

Transport, Storage &Communication

Manufacturing

Qatar: Contribution to GDP by main activities (% GDP, 2011)


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GDP in Kuwait in 2011

10.6%contribution of petrochemicalsto manufacturing GDP in 2011

s +UWAITSREAL'$0GROWTHINISESTIMATEDATAROUNDSUPPORTEDBYAINCREASEINOILPRODUCTION'ROWTHOFNONOILECONOMICACTIVITYISESTIMATEDATAROUNDINDRIVENBY

HIGHERGOVERNMENTEXPENDITUREWHICHHASINCREASEDBYALMOSTINTHElSCALYEAR

s /ILAND'ASSECTORCONTINUESTOACCOUNTFORTHEMAJORITYOF+UWAITS'$0REPRESENTINGOF

real GDP in 2011. Oil prices remained high based on strong demand from emerging economies

and tight supply. Aside from contributing to national output, higher oil revenues helped to support

government development plans. Among the plans goals is diversifying the economy away from

HYDROCARBONSWHICHISEXPECTEDTOLEADTOAHIGHERGROWTHOFTHENONHYDROCARBONSECTOR

s -ANUFACTURINGSECTORSAWGROWTHINOVERLEVELS0ETROCHEMICALSCONTRIBUTIONTO

+UWAITSECONOMYISESTIMATEDATWHICHREPRESENTSSHAREOFMANUFACTURING'$0

Petrochemicals sector in Kuwait accounted for10.6% of manufacturing sectors contribution to

the countrys GDP in 2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



Kuwait: Contribution of sub-sectors to manufacturing GDP (%)

2007

19.3%

6.0%

74.6%

2008

18.9%

7.3%

73.8%

2009

36.0%

12.0%

52.0%

2010

34.1%

11.0%

54.9%

2011

32.7%

10.6%

56.7%

Source: Kuwait Central Statistics Bureau and GPCA Analysis, 2012


62%

1.7%3.7%

5.7%10%

12.1%

4.7%

0.25%


Source: Kuwait Central Statistics Bureau and GPCA Analysis, 2012


Othermanufacturing 2.7%


Finance, Insurance,Real Estate & Business Services

Construction

Others

Wholesale & Retail Trade,Restaurants and Hotels

Agriculture,

Forestry & Fishing


Communication

Manufacturing

Kuwait: Contribution to GDP by main activities (% GDP, 2011)

4.7%of Kuwaits GDP in 2011

Manufacturingaccounted for


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GDP in Oman in 2011

53.2%53.2% contribution ofpetrochemicals sector tomanufacturing GPD

s 4HE/MANIECONOMYHASGROWNSTRONGLYSINCEDRIVENBYINCREASEDGOVERNMENTSPENDINGANDHIGHEROILPRICES)N2EAL'$0GREWBYUPFROMGROWTHIN

and 1.1% in 2009.

s 4HE/MANIGOVERNMENTISPLACINGAGREATEMPHASISTOECONOMICDIVERSIlCATIONTOENSURE

ALTERNATIVESOURCESOFINCOME/VERTHEPASTYEARNONOIL'$0GREWBYCOMPAREDWITH

OILGAS'$0GROWTHOF

s -ANUFACTURINGSECTORCONTRIBUTEDTOTHEREAL'$0OF/MANINOFWHICH

petrochemicals accounted for 53.2%

Petrochemicals sector accounted for 53.2%of the manufacturing sectors contribution toOmans GDP in 2011


10.3%of Omans GDP in 2011

Manufacturing

contributed

50.9%

4.8%

7.9%

5.3%7.6%

12.1%

10.3%

1.1%


Petrochemicals and

chemicals 5.5%

Other

manufacturing 4.0%


Finance, Insurance,

Real Estate

& Business Services

Construction Others

Wholesale & Retail

Trade, Restaurants

and Hotels

Agriculture,Forestry & Fishing

Source: Oman National Center for Statistics and Information and GPCA Analysis, 2012

Transport,

Storage &

Communication

Manufacturing

Oman: Contribution to GDP by main activities (% GDP, 2011)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Source: Oman National Center for Statistics and Information and GPCA Analysis, 2012


Contribution

toManufactuiring

(%)

Oman: Contribution of sub-sectors to manufacturing GDP (%)

2007

7.3%

59.6%

33.0%

2008

4.8%

65.7%

29.5%

2009

6.9%

50.9%

42.2%

2010

7.4%

53.7%

38.9%

2011

7.3%

53.2%

39.4%


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GDP in Bahrain in 2011

4.6%contribution of petrochemicalssector to manufacturing GDPin 2011

16.4%of Bahrains GDP in 2011

Manufacturing

contributed

s 2EAL'$0GROWTHIN"AHRAININREACHEDDOWNFROMINDUETOTHEweaknesses in the financial and tourism sectors.

s #OMPAREDWITHOTHER'##STATESTHEECONOMYOF"AHRAINISDIVERSIlEDWITHMANUFACTURING

SECTORACCOUNTINGFOROFTHE'$0IN/ILRElNERYANDALUMINUMARETHEBIGGEST

ELEMENTSOFMANUFACTURINGOUTPUTIN"AHRAINWITHPETROCHEMICALSREPRESENTINGOFTHE

manufacturing GDP.

Petrochemicals sector accounted for 4.6% of themanufacturing sectors contribution to GDP ofBahrain in 2011


29.2%3.6%

8.1%

6.8%

19.3%16.2%

16.4%

0.4%


Petrochemicals and

chemicals 0.8%

Other

manufacturing 13.3%


Finance, Insurance,

Real Estate

& Business Services

Construction

Others

Wholesale &

Retail Trade,

Restaurants

and Hotels

Agriculture,

Forestry & Fishing

Transport,

Storage &

Communication

Manufacturing

Bahrain: Contribution to GDP by main activities (% GDP, 2011)

Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



Bahrain: Contribution to sub-sectors to manufacturing GDP (%)

2007

12.2%

3.8%

84.0%

2008

10.5%

4.1%

85.4%

2009

11.6%

3.9%

84.5%

2010

10.0%

3.2%

86.7%

2011

14.2%

4.6%

81.2%

Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

Documents

2.1 Contribution of the Petrochemicals Sector to Regional and Ational GDP