Plastics poised for a big surge in the Gulf states

A study commissioned by Expo Centre Sharjah and conducted by UK-based Ispy Publishing says the Gulf states’ plastic industry is poised to boom while investments of some $57 billion could enter the petrochemical industry over the next five years. It also said the Gulf’s market share in the $600 billion petrochemical industry would jump to more than 17 per cent from 11 per cent now.

The Expo Centre study was titled, “Plastics: Middle East Market Intelligence Report” and completed ahead of the Plastivision Arabia’ exhibition in May.

The international plastics exhibition and conference, along with ArabiaMold, will be held from May 14 to 17. The newest trade fair to roll out from the Expo Centre Sharjah stable, Plastivision Arabia 2012 will aim to take advantage of this market that packs huge growth prospects.

Prospects for the plastic industry are high mainly because of abundant hydrocarbon resources and domestic demand growth driven by high per capita income and population growth, the study stated.

Rising demand from Asia and an increasing European appetite for Middle Eastern products are also helping absorb the surge in production of plastics and petrochemicals by fast-expanding GCC manufacturers, it added.

“The UAE and the rest of the oil-producing countries have embarked on a massive drive to diversity their economies and this has resulted in the manufacturing sector receiving more attention while drawing up strategic economic policies and investment plans,” remarked Saif Mohammed Al Midfa, director-general of Expo Centre Sharjah. “The plastics industry is a direct beneficiary of this drive, and, coupled with our natural edge in petrochemicals, the sector is set to grow rapidly,” he said.

Although the UAE has remained heavily reliant on oil exports for its income, the hydrocarbon sector’s contribution to GDP has sharply declined over the years, the study noted. Non-oil GDP rising in UAE. From around 70 percent in 1971, its contribution slumped to only 29 percent in 2010. Non-oil GDP hit an all-time high of around Dh749 billion ($203.9 billion) in 2010 compared with nearly Dh511 billion in 2006. Spearheading growth in the region will be plastics packaging with a global value expected to reach $180 billion in 2011, the report added.

Continuing growth in crucial sectors such as infrastructure, manufacturing, food and beverages and construction will also fuel the use of plastic resins and their products which are used for pipes and valves.

“Positioned as a comprehensive and cost-effective platform for raw material producers, primary processing and auxiliary equipment suppliers and traders, the show has already received confirmations from more than a hundred exhibitors. It will also see the largest ever participation of Indian plastics companies and cater to the rising demand from regional countries as well as emerging economies,” said Al Midfa.

Expo Centre Sharjah has tied up with the All India Plastics Manufacturers Association (AIPMA) – the organisers of Plastivision India, and Demat – the organisers of EuroMold – to bring the two premier industry events to Sharjah. The show will feature a special Green Technology Zone and seminars and workshops on bioplastics.

The exhibit profile will cover raw materials and auxiliaries, plastic products and processing, machinery and equipment for the plastics and rubber industries, mouldmaking, tooling, design and services.