Kuwait’s exceptional capabilities set to lead global petrochemical market

• Sheikha Tamader Khaled Al-Ahmad Al-Jaber Al-Sabah, Director of Public Relations and Petroleum Media at the Ministry of Oil, said the petrochemical industry is one of the key sectors that Kuwait seeks to develop to support economic diversification and reduce dependence on oil.

Sheikha Tamader Khaled Al-Ahmad Al-Jaber Al-Sabah, Director of Public Relations and Petroleum Media at the Ministry of Oil, highlighted Kuwait’s strong potential to reinforce its leadership in the petrochemical sector. She pointed to the nation’s abundant oil resources, advanced infrastructure with integrated industrial complexes, and substantial investments in scientific research and the development of skilled national talent, as key drivers, according to Arabic daily Al Rai.

During a panel discussion organized by the ministry titled “Petrochemicals in Kuwait,” Sheikha Tamader Al-Sabah emphasized that Kuwait’s petrochemical industry capabilities reflect the political leadership’s belief in the importance of building a generation capable of leading this promising industry.

Diversifying national income sources

She added that the Ministry of Oil believes that developing the petrochemical industry is an indispensable strategic choice, as it transforms natural resources into integrated production chains used in vital industries such as fertilizers, plastics, and pharmaceutical products. This contributes to diversifying national income sources and supports the implementation of the “New Kuwait 2035” vision towards a flexible economy based on knowledge and innovation.

Wafaa Al-Othman, Director of Comprehensive Planning at the Petrochemical Industries Company (PIC), gave an in-depth presentation on the current state and future prospects of the petrochemical sector, both locally and internationally. She highlighted the sector’s significant contribution to Kuwait’s GDP, particularly the non-oil sector, underlining its importance as a key source of national income.

Al-Othman said that the petrochemical industry is primarily composed of compounds based on carbon and hydrogen, explaining that oil and natural gas are not just energy sources but also essential raw materials for the production of thousands of vital products such as plastics, synthetic rubber, fibers, detergents, and cosmetics.

90% of consumer products contain petrochemical components

She explained that petrochemicals are widely used in various aspects of life and are a fundamental pillar of numerous industries, including more than 90 percent of everyday consumer products that contain direct or indirect petrochemical components.

Evolution of global petrochemical market

Reviewing the evolution of the global petrochemical market, Al-Othman noted that demand for petrochemicals has grown exponentially due to population growth and industrial expansion. She explained that petrochemical production has outpaced the growth of most consumer goods and global GDP over the past five decades.

She added that despite growth, the market faces a surplus in production capacity due to overexpansion in Asia, particularly China, with stockpiling during the 2021-2022 supply chain crisis leading to lower prices and reduced profits.

Size of petrochemical market exceeded $650 billion

She stressed that despite the challenges, the petrochemical market remains vital and promising, noting that its size has exceeded $650 billion, with more than 40 percent of this amount accounted for by the ethylene and its derivatives market, while Southeast Asia accounts for more than half of global sales.

In this context, Al-Othman stated that market analysts’ expectations indicate an increase in demand for petrochemicals worldwide, with an annual growth rate exceeding three percent.

Reducing dependence on crude oil

She added that Kuwait played a pivotal role in establishing the foundations for this industry in the region as part of a national vision aimed at building a diversified economy that reduces dependence on crude oil.

She stressed that the Petrochemical Industries Company, established in 1963 and joining the Kuwait Petroleum Corporation in 1981, is the state’s main arm in this vital sector.

She said that Petrochemicals owns a range of operational assets and global partnerships, with production shares exceeding four million metric tons, including operational assets in the country and partnerships in various countries around the world.

Al-Othman stated that the petrochemical industry is one of the key sectors that Kuwait seeks to develop to support economic diversification and reduce dependence on oil. The vision is focused on increasing added value by developing this industry and enhancing its global competitiveness.

She stressed that Kuwait seeks to attract investments and advanced technology in the petrochemical sector to contribute to achieving sustainable growth and increasing productivity through cooperation between the public and private sectors.