Training and developing local workforces in producing countries is one of the key long-term challenges facing the oil and gas industry across the globe, the chief executive of the Middle Eastern arm of manufacturing firm SABIC has explained to a conference in Dubai.

According to recently published statistics compiled by The Economist, consumers within emerging economies such as China, Brazil, Mexico and the Middle East have accounted for around 80 per cent of the growth seen in global oil demand over the past five years, with their share of exports having increased from just 20 per cent in 1970 to the current level of in excess of 45 per cent.

Such a trend, Mohamed Al-Mady told delegates, is likely to lead to a new facility start-up rush between the years 2008 and 2010 within the Middle East petrochemical industry, bringing with it the need for businesses and governments to step up their attempts to reduce their dependence on foreign skilled workers.

"While local governments, and in our case, SABIC are working to develop training and education programs that will enhance local work force skills, there is still some way to go," he explained.

"It is not enough to simply offer scholarships or on the job training, particularly in the face of fierce competition to recruit the skilled resources."

Given this, SABIC has established its own 'learning centre' in the region, tasked with developing existing employees and encouraging knowledge transfers and fostering an environment conducive to long-term growth.