IsDB has identified a set of core industries in which its members hold distinct comparative advantages. Petrochemicals is one of them, because it provides substantial value-creation and for many of our member countries are the biggest contributors to exports and very important providers of good-quality jobs.
Yet, while most of our member countries are net exporters of crude oil and gas, they are still net importers of high-value petrochemical products, the next downstream step in the petroleum value chain. This is an alarming situation, because natural resources are being exported without any new value being added. We are missing out on the opportunity of millions of jobs and billions of dollars of extra revenue from expanding into the petrochemical industry. Therefore, it has never been more crucial to develop primary and secondary processing from our inherent comparative advantage. Doing so will make our countries more resilient to petroleum price shocks.
The development of the petrochemical industry requires very substantial capital expenditures, plus strong links to the global value chains of many other end-user industries. IsDB aims to plot a roadmap for a collaborative network of private and public entities at the OIC level in order to create the required market size and foster opportunities for flourishing end-user industries. This in turn will drive innovation in the petrochemical and other industries. By adding greater value in these high-impact high-growth industries, our member countries will be able to collectively evolve from oil-producing countries to technology developers, while at the same time diversifying and increasing their portfolio of products.
The sector insights contained in this Futures Report and its critical view of the challenges, opportunities and potential that lie ahead provide a valuable baseline and starting point for future collaboration.
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