Why The Middle East’s Petrochemical Industry Needs to Reinvent Itself
9 May 2017
Multiple market disruptions including the shale gas renaissance in the United States, plummeting oil prices worldwide, and a capacity expansion drive in China and Iran are reshaping the Middle East’s petrochemical industry. These disruptions are shi ing the balance of power among major regional players and putting many Middle Eastern producers at risk of losing the competitive edge they long enjoyed from cheap feedstock. Slowing growth rates in the global chemi- cals industry will only worsen the problem. To achieve a sustainable competitive advantage in the future, companies in the region must develop capabilities aimed at strengthening their commercial, operational, and innovation prowess. Capability building takes time, however, so petrochemical companies in the region should embark on their transformation journey now.