GCC as plastics production powerhouse - Plastivision Arabia 2012

The Gulf states have what it takes to become a plastics production powerhouse on the back of their abundant hydrocarbon resources, and domestic demand growth driven by high per-capita income and population growth, according to a study. 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.

The Gulf states account for 11% of the $600 billion global petrochemical industry. Over the next five years, the Gulf's market share of the global petrochemical industry will jump to over 17%, said the study ‘Plastics: Middle East Market Intelligence Report'. The study, commissioned by the Expo Centre Sharjah and conducted by UK-based Ispy Publishing ahead of the Plastivision Arabia exhibition in May this year, said that in the same period, the GCC will see about $57 billion investment in the industry.

In the same vein, the value of the global plastics market is estimated at $180 billion in 2011. The global plastics industry has recorded average annual growth of 9% since 1950. In the past 30 years alone, international plastics production has grown by more than 500%. Global plastics consumption is forecast to grow 5% per annum for the period 2007 through 2015.

In keeping up with this strong performance, the plastics industry in the Middle East is projected to grow annually by 30%. "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 whilst drawing up strategic economic policies and investment plans. 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," said Mr. Saif Mohammed Al Midfa, Director-General of Expo Centre Sharjah.
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.

From around 70% in 1971, its contribution slumped to only 29% in 2010, according to an official study. Non-oil GDP hit an alltime high of around Dhs. 749 billion in 2010 compared with nearly Dhs. 511 billion in 2006, it said. Spearheading the growth of the industry in the region will be plastics packaging.

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. The newest trade fair to roll out from the Expo Cent re Shar jah stable, Plastivision Arabia 2012, will aim to take advantage of this market that packs huge growth prospects. The international plastics exhibition and conference, along with ArabiaMold, will be held from 14 – 17 May 2012.
"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 organisers of Plastivision India, and DEMAT GmbH - the organisers of 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 rubbNike Ambassador 10