Investments worth over AED1.3 billion ($353.98 million) in new and existing paper mills were unveiled at the just concluded two-day Propaper Dubai 2026.signalling the regional paper industry’s growth potential despite ongoing geopolitical challenges.
In a statement, Verifair Events, organisers of the successful two-day premium B2B event, the region’s most comprehensive paper industry gathering, said the UAE accounted for the largest share in paper mill investments followed by Oman.
“The fact that notwithstanding the challenges, the GCC and the larger regional paper industry continue to attract robust investments points to an impressive anticipated growth trajectory. Major new investments announced at ProPaper 2026 in the UAE also reinforce the country’s rapid transition towards sustainable and high-tech circular manufacturing,” said Jeen Joshua, Managing Director, Verifair Events.
Significant investments in the UAE pointing to an expanded paper industry landscape in the UAE included milestone projects - the largest by M.A.H.Y Khoory Group, which plans to invest more than AED1 billion in developing PM4, a major paper manufacturing project at the Al Dhafra plant of Union Paper Mills (UPM) in Abu Dhabi. PM4 will enable the group to diversify into higher-value products, including premium containerboard grades and specialised paper for gypsum plasterboard applications.
Meanwhile, the AED200 million Star Paper Mill recycled containerboard facility in Khalifa Economic Zones Abu Dhabi (KEZAD), is increasing production following its inaugural output in April this year. The plant had already reached 50 per cent of is installed production capacity in September, with the ramp up towards the envisaged annual capacity of 135,000 tonnes progressing. New products are also in the pipeline including Semi Kraft liners and paper bag grades.
Oryx Paper Mills is building a modern, integrated kraft paper manufacturing plant at KEZAD Al Ma’mourah. Targeted for commercial production in Q1 2028 with a capacity of 150,000 tonnes per annum, the facility will utilize AI and automation to meet soaring regional demand for packaging papers across the UAE, GCC, and wider Middle East.
“Together, these investments are giving a big boost to the UAE’s Operation 300bn industrial strategy, and the Make it in the Emirates initiative,” added Joshua.
Other than the UAE, Keryas Paper Industry, Oman, in partnership with Al Karama Hypermarket Group, Oman, has signed a memorandum of understanding (MoU) at ProPaper 2026 in Dubai to establish a 20,000 metric tonnes per annum (MTPA) tissue manufacturing facility at Sohar Industrial City, Phase 7, Oman. With a proposed investment of approximately $12 million, the project is expected to be the first of its kind in this segment in the Sultanate of Oman. – TradeArabia News Service
