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Gulf Attracts $5b Investments in Plastics

Khanna underscored the significance of the plastics sector in GCC where over 1,253 industrial units are operating.

Investments in plastics and tube industries are on the upswing as investors shift their sights to industrial investments that are safer and more promising, informed Khanna at a press conference on Wednesday to announce the opening of Arabplast and Tekno/Tube Arabia 2009 exhibitions, which will be held from January 10 to 13, 2009 in Dubai. The show is sponsored by Qatar Petrochemical Company and Abu Dhabi Polymers Park and Borouge.

Amidst the global financial crisis, the UAE manufacturing sector grew at 15 per cent in the first three quarters of 2008 - a phenomenon that is pushing a growing number of existing companies and new investors to take advantage of the city’s business-friendly environment, according to experts.

Further, the rising demand for tube products and the setting up of numerous industries is fuelling the growth in these markets, acting as a magnet for investing in regional and international industrial centers.

Khanna added: “Plastics industry now accounts for 10.6 per cent of the total manufacturing in GCC, of which 4 per cent investment is plastics and petrochemicals and this sector employs over 9 per cent of the total work force in the GCC.”

The region’s leading international exhibitions on plastic, rubber, industrial machines, metal works, tubes and pipes are once again geared to host some of the biggest players in the 18^th year.

Khanna added: “GCC Plastics industry grew fivefold in 1995-2007. In 1990 there were only 326 plastics manufacturers, with an investment of $932 million with strength of 17,500 work force. The designated capacity of GCC in plastic production was 2.3 million tons last year where it was 0.50 million ton in 1990.”

Both exhibitions will feature the latest technology while simultaneously offering an interactive platform for key industry players.

The rich source of raw materials such as petrochemicals and a demand projection of double digit growth in plastic rubber and tubes sectors in this region, will significantly contribute to the growth of both exhibitions.

“Dubai has successfully emerged as the regional hub of the Middle East markets. We felt the keenness of the overseas exhibitors to build business relations with trade visitors from the Middle East in an effort to widen their scope of business.”

“They found this part of the world emerging, therefore lucrative for their international operations,” said Duebelt Messe Dusseldorf GmbH for the third edition have teamed up with Al Fajer for Arabplast and second time for Tekno/Tube Arabia 2009 in facilitating support from exhibiting companies from 34 countries.

· abdulbasit@khaleejtimes.com