Page 12 - Plastics News March 2017

AIPMA AT WoRk

Middle East Industry off to a Great Start

he regional industry has got the perfect start into a mega events in the region -- the World Expo 2020 in
Tnew year with multiple factors coming together at Dubai and the Fifa World Cup 2022 in Qatar. Massive
the same time to script a market surge. The market is infrastructure projects are under way, generating great
optimistic since oil prices are stabilizing, spending for amount of business for regional fabricators. This is in stark
World Expo 2020 &Fifa World Cup 2022 is picking up and contrast to the subdued market last year,” added Mr. Midfa.
investments in the manufacturing sector remain a priority Forty-seven construction contracts worth US$3 billion and
for regional governments.
non-construction contracts worth US$98 million are to
“Clear indications to an upsurge were visible during be awarded before the end of 2017, which include the
recently concluded 13th SteelFab 2017 that was held at third and final infrastructure package for Expo 2020’s
Expo Centre Sharjah from January 16 to 19, 2017. The support areas.
show saw regional fabricators turning up in good numbers Meanwhile, Qatar is currently spending US$500 million a
and planning for an increase in work orders, leaving week on projects in preparation for its World Cup games
behind the challenging times they experienced in the in 2022. This level of spending is expected to continue
middle of 2016,” said Mr. Saif Mohammed Al Midfa, CEo, up to 2021 with mega-projects under construction across
Expo Centre Sharjah.
the country.
The surge in buying intentions, quality business leads and Manufacturing continues to remain one of the key drivers
the sale of most of the machines on display at SteelFab of demand for the regional fabricators, with industrial
signal an expected rise in work orders on the back of investments by GCC states projected to hit a staggering
improving market conditions.
US$1 trillion by 2020 from US$323 billion in 2015, according
From the lows of US$27 a barrel in early 2016, oil prices to figures by the Federation of GCC Chambers.
edged above US$50 a barrel by the end of the year due Closer home, the UAE seeks to attract more than US$70
to oPEC-led production cuts that was joined by Russia to billion in industrial investments by 2025, which will help
prop up the market and end a global fuel supply glut. The increase the share of the industrial sector in the country's
prices are expected to average US$55/barrel in 2017 and GDP to 25%, up from the current 16%. “ongoing projects in
US$58/barrel in 2018.
several sectors are picking up speed and new projects are
Higher prices are likely to attract more investments being planned and launched given the favourable economic
into the oil & gas sector, triggering expansions in conditions in the region. This augurs well for the regions
exploration and production since developing refining and underscores the need of exhibitions which are sector
and petrochemical capacity is key to the growth of GCC specific to assist in overall growth,” said Mr. Midfa.
states,. “Spending has picked up pace for two upcoming

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