Global and regional Plastics and Petrochemical trade
The Middle East has become the nerve centre of the global petrochemical industry, with the countries of the Gulf Cooperation Council (GCC) emerging as the largest producers and exporters of petrochemicals and plastics. Being a rapidly growing area, the Middle East offers an excellent opportunity for companies in this industry. With huge volumes coming on line over the next one to five years, and the region becoming the focus of international polymer producers and converters, there is immense growth potential for the regional downstream plastics industry.
The petrochemical and polymer industry in the UAE is ranked second amongst the GCC states with Saudi Arabia leading the list. The plastics industry in the UAE has attracted more than AED15 billion in investments in 2005, representing almost 22 per cent of the total manufacturing investments in the country. Over the last five years, the number of plastics factories in the UAE rose from 507 in 2003 to 679 in 2007, an increase of 33.92 per cent. The volume of investment increased from Dh144.75m in 2003 to Dh154.38m in 2007, an increase of 6.65 per cent.
According to statistics issued by the Industrial Development Department, the 679 factories currently operational in the country include 208 local factories, 32 non-GCC factories, 38 factories set up by UAE and GCC investments and 401 factories established by local and non-GCC investments. The number of workers in the plastics industries has also risen from 29,000 in 2003 to 36,000 in 2005, a 24.7 per cent increase.
The plastics industry in the UAE is expected to witness a growth rate of 15-20 per cent over the next five years, as a result of the growth witnessed in the other economic sectors in the country. In fact, Dubai’s plastic products market is considered to be one of the largest in the region, and has considerable potential for industrialization.
People in the UAE are very keen to use state-of-the-art knowledge and technology and the level of investment and quality of products and services, will play a large part in helping industrial growth both regionally and internationally.
DMCC: Growing the regional plastics trade
As the leading centre for commodities trade in the Middle East, the Dubai Multi Commodities Centre (DMCC) is facilitating the growth of the plastics trade in and throughout the Middle East and Asia, focusing on providing industry specific infrastructure and facilities for the sector.