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Petrochemical investments in Mena region

09 Jan '07
3 min read

Conclusions
Never before has the outlook for investment in the MENA petrochemical sector been so bullish and yet so uncertain. While higher-value adding projects should be expected to find active support, the industry's drivers and the uncertainties and risks associated with them will be key to investment decisions.

In a context of constrained availability of traditional feedstock and soaring project costs, the industry, which is more prone to cycles than any other link of the hydrocarbon supply chain, may face a price downturn in the medium term. Depending on the depth and length of the down cycle, project sponsors may well review the timing and magnitude of their investment and consider delaying some of their less strategic capital projects until the business cycle swings high again.

Arab Petroleum Investments Corporation (APICORP) is an inter-Arab joint stock company established in November 1975 in accordance with an international agreement signed and ratified by the governments of the ten Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC).

Arab Petroleum Investments Corporation

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