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Petchem sector ...major employer in the Gulf.

GCC petchem sector creates 600,000 jobs

DUBAI, October 13, 2014

The petrochemical and chemical industry, along with its supporting sectors, in the Arabian Gulf region employed over half a million people through direct and indirect jobs in 2013, according to new data released by the Gulf Petrochemicals and Chemicals Association (GPCA).

The petrochemical and chemical industry in the Gulf region directly employed 148,900, according to the GPCA.

An additional 446,700 direct and indirect jobs were created by supporting industries, bringing the total number of jobs that rely on the downstream hydrocarbon industry in the Gulf to 595,600 in 2013.

Strengthened by a rapidly expanding petrochemical sector and multi-billion dollar investments, Saudi Arabia’s petrochemical industry employed directly 83,700 people, accounting for over half of the Gulf’s petrochemical industry’s workforce.

The UAE is the region’s second largest market in terms of people, employing for 38,100 professionals, just over 25 per cent of the region’s chemical employees.   

Employment statistics in the region show that for the GCC petrochemical industry, the multiplier effect is around 1:3, as every 10 jobs directly created by the sector leads to an additional 30 indirect employment opportunities in the chemicals supply chain.    

Dr Abdulwahab Al Sadoun, secretary general, GPCA, said: “In 2013, the development of petrochemicals created a ripple effect that was responsible for more than half a million jobs in the GCC, resulting in the manufacture of over $102 billion worth of products. Petrochemicals is evolving into an industry that touches nearly every sector of the GCC economy, from supply chain, equipment manufacturing, construction and agriculture to retail and trade.”    

The GCC’s petrochemical industry’s capacity has grown consistently at 9.5 per cent year- on- year since 2008 and currently produces 140.5 million tons of products. Similarly, employment in the sector has risen cumulatively by 12.2 per cent in the same period.  

Petrochemicals are now the region’s second largest manufacturing sector in terms of contribution to GDP and the largest manufacturing employer, after metals, minerals and the food industry.

Furthermore, GCC nationals make up 56 per cent of the industry’s workforce. Bahrain accounts for the highest number of nationals working in the industry, with 83 per cent of the chemical workforce being Bahraini nationals, followed by Saudi Arabia, where 63 per cent of the industry’s employees are Saudi nationals.   

Dr Al Sadoun concluded: “Over the last few years, the Gulf’s petrochemical industry has developed a solid base of skilled human capital, which is a crucial component in ensuring the long term development of the industry. While the sector is taking solid steps towards economic and environmental sustainability, these strides would have little effect if it were not for human resources. After all, skilled talent is crucial for the industry’s growth and global competitiveness.”

The people aspect of sustainability will be a key focus during the upcoming GPCA Sustainability Conference. Now in its second edition, the annual event will be held from October 21 to 23, in Dubai, UAE. – TradeArabia News Service
 




Tags: Employment | GPCA |

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