Chemical producers in the GCC region will get a boost from China’s One Belt, One Road (OBOR) policy by which China is creating six major trade corridors across Asia, the Middle East, Africa and Europe, according to Paul Harnick of consultancy KPMG.
China will invest USD 750 billion globally over the next five years and import USD 8 trillion of commodities and services, which offers “massive opportunities” for the chemical producers in the Middle East to capitalize on, he said during the Annual Forum Day 0 seminar sessions.
Under OBOR, China plans to build roads, railways, ports, power plants and industrial zones to promote business across most of the world. China can supply chemicals from one end and Middle East producers can provide chemicals from the other end of the road, Harnick explained.
Harnick said primarily this will benefit Chinese companies, but the sheer scale of the initiative means companies along the route will also gain because of the trading opportunities. Because of massive infrastructure projects being undertaken for OBOR, construction chemicals from the Middle East are set to grow in demand by 7%/year to 2022, he added.