Cash-rich Gulf companies investing in petrochemicals in South East Asia

Arabian Gulf investors are pouring billions of dollars into petrochemicals in South East Asia as they chase new consumers outside a flagging China.

Thanks to bumper years of high oil prices that buoyed oil and petrochemical revenues, companies from Abu Dhabi to Qatar have a pile of cash to spend in countries with growing populations and low labour costs.

This week Qatar Holding announced it would invest up to US$5 billion (Dh18.36bn) in a Malaysian petrochemicals complex to rival Singapore's in scope, and Dubai's Drydocks World agreed to build a $2.5bn maritime complex catering to the industry in Indonesia.

Meanwhile, Saudi Aramco is evaluating a refining and petrochemical complex in the Indonesian province of East Java, Qatar Petroleum (QP) is taking a stake in a $4bn Vietnamese petrochemical complex and Abu Dhabi's Borouge is opening plastics sales offices throughout the region.

"Basically you've got a bunch of cash-rich oil and petrochemical companies - Aramco, Sabic, QP - so they've got plenty to invest," said Tony Potter, a managing director at IHS Chemical, a consultancy to the industry.

Read more: http://www.thenational.ae/thenationalconversation/industry-insights/energy/cash-rich-gulf-companies-investing-in-petrochemicals-in-south-east-asia#ixzz2JXpajZaJ