Mideast project finance
doubles to $70 billion
BY ISAAC JOHN (Chief Business Reporter)
14 December 2006 - Khaleej Times
— The petrochemical sector in the Middle East is poised to capture a
significant portion of the $70 billion project finance — almost
double compared to 2005— to be raised by the region this year.
According to Hamad Al-Terkait, Vice Chairman of Gulf Petrochemicals
and Chemicals Association (GPCA), the region's growing appetite for
project finance, which is more than one-third — at $33 billion — of
the global total of $98.5 billion raised in the first half of 2006,
underscored the fast growing industrial prospects of a region
currently emerging as the most vibrant base for the petrochemical
"The GCC is expected to contribute more than 60 million metric
tonnes of petrochemicals to the world in 2007. “The GCC is of great
strategic importance to the global petrochemicals and chemicals
industry. We are estimating that these sectors will grow another 13
per cent in the region by 2010,” he said.
Mohamed Al Mady, Vice Chairman and CEO of SABIC, who has been
elected as the first Chairman of GPCA, said GCC petrochemical
exports alone are expected to reach 50 million tonnes by 2008.
Industry experts are increasingly looking at the region as the
centre of gravity for the global industry. Part of the reason for
GCC’s prominence can be attributed to easy access to feedstock,
access to the latest technology, and strategic location at the
intersection of the Americas, Asia and the rest of the world.
Al Mady said there is significant liquidity in this market place for
project finance which gives it an added competitive edge.
"Furthermore, construction and labour costs are relatively low and
generous tax incentives for foreign partners.”
He said the first annual conference of Gulf Petrochemicals and
Chemicals Association in Dubai will reveal insights into sector’s
future development. More than 400 delegates are expected to attend