Dubai plastic films exports hit $83m
Dubai, July 6, 2010
The value of top plastic films, including polypropylene, PET and PVC, exported by Dubai in 2009 reached Dh304 million ($82.79 million), said a report.
“Dubai has experienced exceptional growth in the trade of, not only plastic, but a diverse range of commodities, owing to its central geographical location, impeccable quality products and keen business sense,” said Saed Al Awadi, chief executive officer of the Dubai Export Development Corporation (EDC), an agency of the Dubai Department of Economic Development, which released its Plastics Films, Production and Export Capabilities Report for 2010.
“EDC is continually encouraging local exporters to use these to their advantage and aim for a wider reach and an international customer base,” he added.
Polypropylene, Dubai’s top plastic films’ export commodity, has seen steady growth in direct trade since 2004 despite a sharp decline in both, imports and exports in 2009, the report said.
Exports substantially exceeded imports edging Dh212 Million in 2009. Re-exports, however, indicated a gradual increase during 2009-2008. The annual average of Polypropylene Free Zone trade is valued at relatively less than direct trade.
Export destinations of polypropylene included major regional markets such as Egypt, India and Pakistan, with shares between Dh20 million and Dh35 million, as well as distant countries like Italy and Brazil.
Main sources of imports were the neighbouring India and Oman. Re-exports were made largely to Pakistan, and Free Zone trades of smaller value were carried out with some regional and European nations.
Unlike other plastic films, PET trade saw a substantial rise with both, imports and exports, touching Dh70 Million during 2009, following a sharp increase in trade volumes since 2006, according to the report.
Free Zone trade was minimal, with a high fluctuation rate, it noted.
The top destination of PET films direct exports in 2009 was Egypt; other destinations include Europe, Africa, US and Japan, whereas Japan was the top supplier to Dubai. Re-exports were made to regional destinations, largely Iran and Pakistan and Free Zone trade was also primarily regional.
Direct trade in polymers of vinyl chloride was medium, compared to other plastic films. During 2008, imports touched a maximum of Dh90 million, exports Dh50 million and re-exports totalled less than Dh10 million per year between 2003 and 2008. Free Zone trade saw a decline in 2009, said the report.
Though polyethylene exports remained less than Dh2 million per year during 2000-2009, imports, however, edged Dh10 million in 2008 falling to only Dh7 million in 2009, indicating an opportunity for import substitution.
In 2008 EU polypropylene imports registered more than $4 billion and PET edged $2 billion. There also small but growing markets for these two products in Africa and Asia.
According to the Industrial Marketing Intelligence (IMI) database, created by the Gulf Organization for Industrial Consulting (GOIC), Dubai is home to 66 manufacturing units in the sector of plastic sheets, films, plates etc, that have a total investment of Dh257 million, and employment strength of around 2,800. – TradeArabia News Service