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Plastic Industry has huge scope for growth in Dubai

There are 119 establishments manufacturing plastic and rubber products in Dubai. Their paid up capital totalled Dh1.3 billion with turnover of Dh1.3 billion by the end of first quarter 2006, according to DCCI membership database.

The plastic industry in Dubai has diversified into different products especially plastic pipes, seamless tubes, plastic fittings and accessories used in plumbing and electric installations in buildings and drainage. This, in turn, is driving the growth of the plastics industry as well. These factors have also led to increased demand for household and other consumer plastic products.

Salamullah, general manager of Kangaroo Plastics told Khaleej Times, “In the last decade, the greater growth spurt has come from plastic products for packaging because of a growing population and greater consumer spending. Our company manufactured polyethylene sheets, pharmaceutical grade paper with a turnover of Dh60 million in 2005. Alongwith its sister concern Emirates Technopack the company is setting up a new factory at Jebel Ali Free Zone by the end of this year. This new factory is to cater the huge demand of plastic and packaging products in the local and export market effectively."

He also added: “We are setting up the new plant to fulfil the demands of our products in the AGCC countries and at present we have a production capacity of 7200 to 8400 tonnes per year with huge demands for polyethylene construction sheets, aluminium foil lids, and warning tapes."

At the AGCC Country level, the UAE ranked second in the plastic industry after Saudi Arabia. The most locally produced plastic product is pipes and household products. UAE invested around Dh504 million, this has lead to a growth in plastic production, which over time will reduce dependence on imports.

While production is mostly for the domestic market, Dubai plastic industry also exports a significant portion of its output. Packaging products such as bags and containers lead the exports by the tableware/kitchenware category.

In 2004, Dubai's direct exports of plastic products reached Dh480 million, while re-exports reached Dh1.9 billion and imports totalled Dh5.2 billion over the same period.

The petrochemical industry in the UAE has witnessed a huge increase in the last decade, the value of investments in the sector in 2005 totaled Dh15 billion, which represented 22 per cent out of the total manufacturing investments in UAE, according to DCCI report.