The plastics and petrochemicals sector is one of the main focus areas of the region in its shift towards non-reliance on oil exports. Driving the market is rising domestic consumption, affordable energy, low-cost raw materials, skilled manpower and advanced industrial infrastructure.
The rising economic growth, oil prices and consumer confidence have encouraged regional companies to focus more on expansion strategies in the next few years, strengthening their product portfolios by including new product varieties. They are moving away from traditional commodity polymers towards specialties such as engineering plastics and elastomers. This is supporting the expansion and development of the entire downstream industry in the region.
• The UAE economy is set to grow at an accelerated pace of 3.9% in 2018 & 2019
• Rising oil prices, which have surged to three-year high around US$70 a barrel, from around $55 in the past year
• A gradual pick up in non-oil private sector economic activity
• Increasing investment activity related to Expo 2020 in construction, real estate and hospitality sectors
• Rising regional demand and consumer spending
• 25% -- the growth of the plastics industry in the UAE, the fastest in the region in the past decade
• 34.5m -- the production capacity of the polymer industry by 2022 at a rate of 3% year-on-year
• US$34bn -- Sales clocked by the GCC polymer industry in 2016, representing 4% of the global sales in the sector
• 5 million tonnes -- The local markets’ consumption of polymer raw material in 2016, a growth of 4% over previous year
• 2.5 m t -- The market share of specialty and engineering plastics in 2016, a growth of 15%
• The industrial packaging market in the MENA region stood at US$3.3bn in 2016 and is estimated to reach US$5.05bn by 2024-end
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