(MENAFN- Gulf Times) Expansions in Qatar's plastic industry last year increased the country's regional market share and it now holds 8% of the GCC's plastic portfolio, a new study has shown.
Plastic production in the Gulf region will grow at a steady 3.2% until the decade-end, spurred by a sustained roll- out of strategic projects, according to a new study by the Gulf Petrochemicals and Chemicals Association (GPCA).
According to the GCC Plastics Industry Indicators 2015 report, the region's plastic production capacity tripled in the last 10 years, reaching 26.2mn tonnes in 2015, earning $32bn in revenues.
During the 2005- 2015 period, annual production rose 11.7%, and clustered around prominent projects in Saudi Arabia.
Like Saudi Arabia, development strategies that benefit plastic production have also been implemented elsewhere in the GCC (Gulf Cooperation Council).
GPCA secretary general Dr Abdulwahab al-Sadoun said, "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.
"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."
Despite the ongoing challenges of oil price volatility, plastics capacity will continue to grow over the next five years, predicts the GPCA. Growth in Oman is projected to be the strongest in the region, at 17.7% a year. Saudi Arabia, meanwhile, is expected to see a 3.2% rise per year till 2020, a figure that is slightly lower than the 4.9% growth in the last decade.
"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," al-Sadoun said. "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 from January 10 to 12 in Dubai.
Speakers include top executives from renowned plastics companies including Qapco, Sadara, Saudi Aramco, Sabic and Dupont.
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