Saudi Arabia's plastics capacity is expected to see a 3.2 percent rise per year till 2020, a figure that is slightly lower than the 4.9 percent growth in the last decade, according to a new study by the Gulf Petrochemicals and Chemicals Association (GPCA) released ahead of the GPCA Plasticon, a dedicated conference for plastics converters, that will take place on Jan. 10-12 in Dubai. The report forecast that despite the ongoing challenges of oil price volatility, plastics capacity will continue to grow over the next five years. Growth in Oman is projected to be the strongest in the region, at 17.7 percent per year. Plastic production in the Arabian Gulf will grow at a steady 3.2 percent per year till the end of the decade, spurred by a sustained rollout of strategic projects, according to a new study by the GPCA. "No matter the country or economic cycle, the growth of plastic production in the GCC is a unique success story in the Arabian Gulf's continuing journey towards economic diversification," said Dr Abdulwahab Al-Sadoun, secretary general, GPCA. "This is no doubt a testament to the long- term vision of the leadership who have invested in this sector, as well as a testament of plastics as a viable investment opportunity." Statistics from the GCC Plastics Industry Indicators 2015 report showed that the GCC plastic production capacity has tripled in the last 10 years, reaching 26.2 million tons in 2015, earning $32 billion in revenues. During the 2005- 2015 period, the production rose 11.7 percent annually, and clustered around prominent projects in Saudi Arabia. In 2015, expansions in the UAE increased the country's regional market share from 6 percent to 20 percent. Expansions in Qatar have increased the country's regional market share. Qatar now holds 8 percent of the GCC's plastic portfolio. "With regional producers experiencing diminishing revenues and cheap raw materials available to our competitors, we are certainly in the midst of a challenging business environment. Due to the inherent versatility of plastics, an export oriented commodity, as well as strong demand from developing economies, plastics will continue to see a respectable growth rate in the near future," continued Dr Al-Sadoun. "Plastics are an inherent component of modern life, existing in diverse products such as cars, food packaging, furniture and even clothing." The GCC Plastics Industry Indicators 2015 report will be released at the upcoming GPCA Plasticon, a dedicated conference for plastics converters. The report will include insights relevant to the region's plastics industry, including detailed figures on capacity, product growth and employment. Plasticon 2016 will take place on Jan. 10-12 in Dubai. Speakers include executives from leading plastics companies including Qapco, Sadara, Saudi Aramco, Sabic and Dupont.
