Published on : May 07, 2015
At the 7th Supply Chan Conference hosted by Gulf Petrochemicals and Chemicals Associaton (GPCA) in Dubai, industry leaders said that reforms in custom regulatons will be beneficial for GCC to achieve targets. The export-oriented industry association aims to hit milestone of producing 190 million tons worth of goods by 2020.
In the last years, the GCC petrochemicals industry is exhibiting a 8% CAGR growing from 37.2 million tons in 2008 to 67.6 million tons by 2014, as said by Secretary General of GPCA. However, the nations in the Arabian Gulf have been witnessing varying degree of success in efforts to optimize their supply chains.
The details pertaining to export times, documents that are required about trade or trade charges are indicators how convenient it is operate business and these are areas that can be looked upon for improvement. This will ensure the GCC chemical industry maintains to have competitive advantage, as added by GCC Secretary General.
As per GPCA research, the ranking of GCC countries has significantly improved among the leading chemical exporting nations worldwide.
The UAE positions 38th on a world ranking in terms of chemicals exported climbing up six ppaces from its 2008 position, as per data from World Trade Organization (WTO) and GPCA. As per the “Doing Business Report -2015” from World Band, average export prices per container of petrochemicals from UAE were US$656 in 2014. The prices were the lowest in the Gulf having a clearance time of seven days which is the lowest in the GCC.
The UAE leads in terms of accessibility and easy export, which certainly testifies the business-friendly strategy conducted by the government. However, certain aspects such as marginal increase in container costs require stakeholders to work in cohesion to maintain its position.