GCC petchem sector's 2021 earnings outlook promising; needs more investment: Al-Benyan

However, global petrochemical value evaporated as demand and oil prices plummeted, Al-Benyan stated, adding that the world sustained a 3% drop in global GDP in 2020. 

He said that digital technology was a “lifesaver” in the early days of the COVID-19 pandemic. 

“When it comes to creating value in the chemical and petrochemical industry, we are just starting to scratch the surface, he noted, adding that climate change is a “huge challenge” for the industry. 

The pandemic showed closely how greenhouse gas emissions matched steps with commercial productivity. The global CO2 emission dropped by about 6% in 2020 relative to 2019. 

“It has since picked up to pre-pandemic level with 2021 likely to see the second-largest global CO2 emission; therefore the pressure to decarbonize the global economy is growing.” 

The reinvention of the chemical industry should also draw upon non-digital technology, such as alternative feedstocks, new catalysts, and renewable electricity sources that enable the industry to develop recyclable or bio-based products and to decarbonize its chemical plants, he noted.  

Beyond the chemical sector, the entire regional economy will need to transform itself and “circularize” its value chains, leaving no loose ends through which carbon can escape, Al- Benyan concluded.