UAE Leads Growth As GCC Plastic Industry Sales Hit US$34 Bln In 2016

UAE leads growth as GCC plastic industry sales hit US$34 bln in 2016

03-Apr-17

GCC plastics producers’ sales represented 4% of the global industry’s sales revenue, reaching nearly US$34 billion during 2016, while the capacity expanded by as much as 5%, reaching 27.1 mln tons, as per a report by Gulf Petrochemicals and Chemicals Association (GPCA).
The UAE plastics industry is the fastest growing in the GCC, growing by 24.2% per annum in the past decade, added Wam. The GCC plastics industry is expected to reach 34.5 mln tons by 2022, supporting further downstream development, while growing at a CAGR of 3%. Future plastic capacity growth will be driven by Saudi Arabia, Kuwait and Oman. In previous years, Saudi Arabia alone accounted for 2% of global polymer sales, and ranked as the eighth largest plastics producer globally.
Dr Abdulwahab Al-Sadoun, secretary general of the GPCA, said: "Petrochemical producers are increasingly diversifying their portfolios, investing in new products and moving away from traditional commodity polymers towards specialties such as engineering plastics and elastomers. This is, in turn, supporting the expansion and development of the entire downstream industry in the region."

Synthetic rubbers will witness the biggest number of products introduced in the following years, benefitting from expected growth in the transport and automotive sectors, the report said. By 2022, nearly 70% of all incremental supply growth will come from commodities polymers, which represent 89% of GCC polymers capacity. GCC engineering and specialty polymers output grew by 15% in 2016, reaching 2.5 mln tons. The industry also comprises nearly 40,000 employees with additional 118,000 in supporting sectors.
GCC polymer consumption increased by 4% in 2016, reaching 5 mln tons. Saudi Arabia accounted for 67% of the GCC polymer resins production in 2016 and was the largest polymers consumer in the GCC, followed by the UAE which accounted for 19%.
Industrial packaging is the fastest growing end user market for polymers in the region. Consumer packaging accounts for 44%, followed by the construction industry which accounted for more than a fifth. Plastic consumption in the GCC is increasing rapidly and reached 94 kg per capita in 2016.
A number of industrial parks focused on polymer conversion and multi industry are under development in Saudi Arabia, UAE and Oman, with some being built next to big resin production facilities.