Growth opportunities amidst challenges

Countries across the Middle East and North Africa (MENA) are facing mixed economic prospects but generally, the region is projected to post moderate growth in 2012. In its report, the International Monetary Fund (IMF) indicates that the region's economic activity will likely pick up whilst the financial sector is expected to gradually recover. This gives substantial proof to the Middle East's resiliency even in the wake of the economic turmoil in Europe and United States, and some political conflicts being experienced by countries within the region.

As political transformation and economic restructuring take place in some countries in the Middle East, leading economies are projected to push the region's industrial sector towards heightened activities. Government subsidies and attempts to curb fiscal deficits will have beneficial impact on the economies. The IMF also recommends Middle East countries to use their resources for critical investments in infrastructure, education and for supporting much-needed reforms to ensure growth in the near term.

Economic growth as reflected by Real Gross Domestic Product (GDP) for the GCC is projected to reach 5%, according to the IMF's outlook report for the Middle East and Central Asia.  Saudi Arabia, Qatar and the United Arab Emirates – along with other oil exporting countries in the region – are expected to experience upward momentum in their economies as a result of higher oil prices.  With increased oil revenues, countries are stepping up public spending.  The IMF said in the short term, Gulf countries have supportive fiscal and monetary environments and the strong current account surpluses could iron out potential imbalances in the future.

The World Bank has also recognised the growth potential in the region as it raised its forecast for 2012 believing that the MENA countries could expand more than originally anticipated due to the increased public spending and stable oil prices, as well as recovery in industrial production for some countries. GDP growth for the region may reach 3.8% in 2012. The institution also revised upward its economic growth forecasts for countries including Egypt, Iran and Saudi Arabia.  

The competitiveness of leading Middle East economies is also expected to improve further. These include Qatar, which is currently the region's most competitive economy and 14th in the world ranking, according to the World Economic Forum's (WEF) Global Competitiveness Index 2011. Other countries of the region following Qatar are Saudi Arabia at 17th place, the UAE at 27th , Kuwait at 34th  and Bahrain at 37th.

Studies and research suggest that the annual production of plastics in the Gulf and adjourning regions is bound to soar considerably.  According to a study commissioned by Expo Centre Sharjah, annual plastic production is expected to rise by 46% to 155 million tonnes by 2015, compared to 105 million tonnes in 2010.

Machinery and Technology Outlook

Demand for energy-efficient solutions on the rise

The global market for plastics processing machinery is projected to exceed the $13 billion mark by 2015. This staggering figure also takes into account rising demand from emerging markets in the MENA, Asia-Pacific, Latin America and Eastern European regions which is expected to surpass demand from developed markets of the United States, Japan and Western Europe. In the Middle East, increased needs for innovative and energy-efficient machinery have been the trends since the past two years.  

Injection moulding machines will continue to dominate global plastics processing machinery market and this holds true even for the Middle East. Faced with tougher competition, plastics machinery manufacturersAir Force 1