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Investments are on the rise in greenfield paper manufacturing projects and expansion of existing facilities in the UAE and Saudi Arabia with demand growing in the markets of Middle East and Africa.
Investments and expansions in the paper industry in the Gulf Cooperation Council (GCC) countries crossed $1.6 billion in the past two years in tandem with growing consumer demand for paper products, particularly packaging and hygiene.
“The paper products market in the GCC is poised to touch $28.72 billion in the next five years, growing at a CAGR of 3.28 percent,” said Nadhal Mohamed, General Manager, Al Fajer Information & Services, quoting a study by research entity Mordor Intelligence.
“The paper industry in the Middle East has evolved over the years and it is now one of the world’s fastest growing markets. The Covid pandemic had brought in disruptions and production bottlenecks throwing in unprecedented challenges for paper mills across the world, but it also helped mushroom new opportunities in paper packaging and paper disposables, further fuelled by an e-commerce boom,” he said while announcing the relaunch of Paper Arabia, the international exhibition on paper, tissue, paperboard and converting industry, organised by Al Fajer at the Dubai World Trade Centre on 16 to 18 May 2023.
The demand for paper and pulp products in the Middle East and Africa market is driven by the demand for green packaging solutions.
Growth in the packaging industry is also attributed to the boom in e-commerce which now accounts for about 7 percent of the retail spend in the UAE, as estimated by Statista, a market data portal.
“Consumer attitudes and preferences have changed, and in the recent times, health and hygiene conscious consumers have fuelled the market for paper packaging and disposables like tissues with per capita consumption of these products on the rise,” said Naveen Seth, Assistant Secretary, PHD Chamber of Commerce, India.
The Chamber is bringing 30 companies from India to showcase their products at Paper Arabia.
“Increasing environmental awareness is also driving the growth of paper products with governments in the region, particularly the UAE, clamping restrictions on the use of non-renewable products like single-use plastics,” said Sandeep Raina, Export Sales Head Middle East & Africa with APP Sinarmas of Indonesia, a major participant at the trade show.
More than 100 companies from 30 countries are showcasing their products at the 12th edition of Paper Arabia.
(Reporting by Bhaskar Raj; Editing by Anoop Menon)
