عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Officials Call for Exploiting Petrochemical Sector to Achieve Circular Energy Goals

Saudi Energy Minister Prince Abdulaziz bin Salman speaks during the inauguration of the GPCA Forum, on Tuesday in Riyadh. (Asharq Al-Awsat)
Saudi Energy Minister Prince Abdulaziz bin Salman speaks during the inauguration of the GPCA Forum, on Tuesday in Riyadh. (Asharq Al-Awsat)
TT
TT

Officials Call for Exploiting Petrochemical Sector to Achieve Circular Energy Goals

Saudi Energy Minister Prince Abdulaziz bin Salman speaks during the inauguration of the GPCA Forum, on Tuesday in Riyadh. (Asharq Al-Awsat)
Saudi Energy Minister Prince Abdulaziz bin Salman speaks during the inauguration of the GPCA Forum, on Tuesday in Riyadh. (Asharq Al-Awsat)

Saudi Minister of Energy Prince Abdulaziz bin Salman described the Arab Gulf countries as a land of opportunities and ambitions, stressing the role of young local talents in building a sustainable future.

The minister was speaking during the inauguration of the 16th session of the annual forum of the Gulf Petrochemicals and Chemicals Association (GPCA), which is currently held in Riyadh, in the presence of Eng. Saad Al-Kaabi, Minister of State for Qatari Energy Affairs, and Badr Al-Mulla, Kuwaiti Minister of Oil.

The conference participants emphasized that the region was in a good position to take advantage of the available opportunities, advanced infrastructure and technological expertise in order to lead the way towards a more sustainable future.

The forum aims to discuss the strategic issues impacting the chemical sector, under the theme “Chemistry in Action, Shaping a Sustainable Future.”

The dialogues at the event will address a range of topics, including net-zero emissions, food security, and capability building, as well as reaching a sustainable future through collaboration.

GPCA Secretary General Dr. Abdulwahab Al-Sadoun said this year’s forum was being held amid extraordinary circumstances in the world.

“The chemical industry has set itself an ambitious goal of reaching net zero by 2050, while continuing to supply the world’s growing needs. This will not be an easy task, but the chemical industry in the Arabian Gulf is well positioned to benefit from the transition to clean energy and to grow its investments in the circular economy and develop hydrogen utilization technologies,” he told the meeting.

For his part, Eng. Abdul Rahman Al-Faqih, Chairman of the Board of Directors of GPCA and Acting CEO of SABIC, said that the chemical industry has been able to successfully overcome all the challenges.

He stressed the importance of concerted efforts in order to transform these challenges into opportunities to enable GCC countries to build a sustainable future.

Amin Nasser, President and CEO of Saudi Aramco, said: “The chemical industry needs to promote and accelerate innovation efforts to develop more effective and sustainable materials at lower costs. Establishing centers for advanced materials here in Saudi Arabia can improve and complement existing programs, and push the boundaries of innovation to new heights through global collaboration.”

Most Viewed

 
 
Business

IMF Sees Steady Global Growth

FILED - 24 October 2024, US, Washington: The logo of the International Monetary Fund (IMF) is seen on the facade of the conference building on Pennsylvania Street. Photo: Soeren Stache/dpa
FILED - 24 October 2024, US, Washington: The logo of the International Monetary Fund (IMF) is seen on the facade of the conference building on Pennsylvania Street. Photo: Soeren Stache/dpa
TT
TT

IMF Sees Steady Global Growth

FILED - 24 October 2024, US, Washington: The logo of the International Monetary Fund (IMF) is seen on the facade of the conference building on Pennsylvania Street. Photo: Soeren Stache/dpa
FILED - 24 October 2024, US, Washington: The logo of the International Monetary Fund (IMF) is seen on the facade of the conference building on Pennsylvania Street. Photo: Soeren Stache/dpa

The International Monetary Fund expects the world economy to grow a little faster and inflation to keep falling this year. But it warned that the outlook is clouded by President-elect Donald Trump’s promises to slash US taxes, impose tariffs on foreign goods, ease regulations on businesses and deport millions of immigrants working illegally in the United States.

The Washington-based lending agency expects the world economy to grow 3.3% this year and next, up from 3.2% in 2024. The growth is steady but unimpressive: From 2000 to 2019, the world economy grew faster – an average of 3.7% a year. The sluggish growth reflects the lingering effects of big global shocks, including the COVID-19 pandemic and Russia's invasion of Ukraine.

The IMF is a 191-nation lending organization that works to promote economic growth and financial stability and to reduce global poverty.

Global inflation, which had surged after the COVID-19 pandemic disrupted global supply chains and caused shortages and higher prices, is forecast to fall from 5.7% in 2024 to 4.2% this year and 3.5% in 2026.

But in a blog post that accompanied the release of the IMF’s latest World Economic Outlook report, the fund’s chief economist, Pierre-Olivier Gourinchas, wrote that the policies Trump has promised to introduce “are likely to push inflation higher in the near term,” The Associated Press reported.

Big tax cuts could overheat the US economy and inflation. Likewise, hefty tariffs on foreign products could at least temporarily push up prices and hurt exporting countries around the world. And mass deportations could cause restaurants, construction companies and other businesses to run short of workers, pushing up their costs and weighing on economic growth.

Gourinchas also wrote that Trump’s plans to slash regulations on business could “boost potential growth in the medium term if they remove red tape and stimulate innovation.’’ But he warned that “excessive deregulation could also weaken financial safeguards and increase financial vulnerabilities, putting the US economy on a dangerous boom-bust path.’’

Trump inherits a strong US economy. The IMF expects US growth to come in at 2.7% this year, a hefty half percentage point upgrade from the 2.2% it had forecast in October.

The American economy — the world's biggest — is proving resilient in the face of high interest rates, engineered by the Federal Reserve to fight inflation. The US is benefiting from a strong job market that gives consumers the confidence and financial wherewithal to keep spending, from strong gains in productivity and from an influx of immigrants that has eased labor shortages.

The US economy’s unexpectedly strong performance stands in sharp contrast to the advanced economies across the Atlantic Ocean. The IMF expects the 20 countries that share the euro currency to collectively grow just 1% this year, up from 0.8% in 2024 but down from the 1.2% it was expecting in October. “Headwinds,” Gourinchas wrote, “include weak momentum, especially in manufacturing, low consumer confidence, and the persistence of a negative energy price shock’’ caused by Russia’s invasion of Ukraine.

The Chinese economy, No. 2 in the world, is forecast to decelerate – from 4.8% last year to 4.6% in 2025 and 4.5% in 2026. A collapse in the Chinese housing market has undermined consumer confidence. If government doesn’t do enough to stimulate the economy with lower interest rates, stepped-up spending or tax cuts, China “is at risk of a debt-deflation stagnation trap,’’ Gourinchas warned, in which falling prices discourage consumers from spending (because they have an incentive to wait to get still better bargains) and make it more expensive for borrowers to repay loans.

The IMF forecasts came out a day after its sister agency, the World Bank, predicted global growth of 2.7% in 2025 and 2026, same as last year and 2023.

The bank, which makes loans and grants to poor countries, warned that the growth wasn’t sufficient to reduce poverty in low-income countries. The IMF’s global growth estimates tend to be higher than the World Bank’s because they give more weight to faster-growing developing countries.