Sustained GCC growth despite political instability in ME

Compared with other parts of the Middle East, the GCC has not been severely affected by the Syrian crisis. Free trade and investment incentives have seen infrastructure growing while the services sector has been contributing more to the economy, counteracting the impact of low oil prices.

Saudi Arabia and the UAE account for 83% of the plastics processed in the region with a high demand for commodity polymers while engineering polymers demand remains very low at less than 1% of total polymer demand in the region, as cited by AMI in its recently released database of Plastic Processors in the GCC. Even the smaller countries of Bahrain, Kuwait, Oman and Qatar exhibit growth and potential. In particular, the 2022 World Cup in Qatar has created major construction projects benefitting the plastics industry. Combined with the World Expo in Dubai 2020 and on-going residential construction across the region it is easy to see why the plastics processing industry in the GCC is expected to be stronger than the rest of the Middle East, with growth forecast at a little over 3% and total polymer demand expected to be just under 5 million tons by the end of 2016.

Further evidence for this stable market is rising incomes and reduced unemployment that will continue to drive demand for a large amount of consumer and household goods and appliances. The region is now moving onto the next stage of its development program, with a special focus on downstream industries and plastics conversion. Leading the way are Saudi Arabia and the UAE which have introduced a series of initiatives to boost growth of small and medium-sized industries (SMEs) for plastics processing.