GCC 'can attract $57bn petchem investments'
Sharjah, January 2, 2012
The Gulf countries have what it takes to become a plastics powerhouse and are set to attract $57 billion investments into the petrochemical industry over the next five years, according to a new study.
The study was commissioned by Expo Centre Sharjah and conducted by UK-based Ispy Publishing 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.
Over the next five years, the Gulf's market share in the $600 billion petrochemical industry will jump to over 17 per cent from its current 11 per cent, said the study titled ‘Plastics: Middle East Market Intelligence Report.’
The high prospects for the plastic industry in the region is mainly because of its abundant hydrocarbon resources and domestic demand growth driven by high per-capita income and population growth, the study stated.
Rising demand from Asia and 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 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 added.
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.
From around 70 per cent in 1971, its contribution slumped to only 29 per cent in 2010, according to an official study. Non-oil GDP hit an all-time high of around Dh749 billion in 2010 compared with nearly Dh511 billion in 2006, it said.
Spearheading the growth of the industry 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 & 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,” added Mr Midfa.
Expo Centre Sharjah has tied up with the All India Plastics Manufacturers Association (AIPMA) – the organizers of Plastivision India, and Demat – the organizers of world-renowned EuroMold, to bring the two premier industry events to Sharjah.
The show will also feature a Green Technology Zone, a special Green Technology Zone and seminars and workshops on Bio Plastics.
The exhibit profile will cover raw materials and auxiliaries, plastic products and processing, machinery and equipment for the plastics and rubber industries, moldmaking, tooling, design and services for the industry.-TradeArabia News Service