Markets to be explored - United Arab Emirates

The Packaging Sector in the United Arab Emirates has prospered from the expansion, diversification and growth of the national economy, which is one of the largest emerging economies in the Middle East and Africa and ranks second to the economy of Saudi Arabia.

The UAE GDP grew from AED 6.5 billion in 1971 to more than a trillion in 2011! The local demand for packaging products and machines has been fuelled by the main contributors below:
*UAE Dirham. 1 UAE Dirham = 0.2103 Euros

Food Processing. As population continues to grow (7.1 million in 2011), more packaging products and machines are required for packaging, wrapping and filling for the local production of canned and frozen food items, dates and fresh vegetables, dairy products, juices, soft drinks and water, snack foods, bakery products, wheat milling, vegetable oils and packing of sugar, tea, spices, etc. It should be noted that recent developments in consumer protection initiatives and in consumer awareness regarding product safety have led to more investments in the packaging industry, for improved and better packaging of food and other consumer products.

Manufacturing accounts for 11% of GDP and the most output is in aluminium and steel, gold and jewellery, plastics, cement and aggregates, ceramics, fertilizers, garments, pharmaceuticals, stationery, tissue paper, electrical and mechanical parts, lubricants, etc.

Exports. Export activity has continued to expand thanks to well developed infrastructure: the strategic position of sea and air ports, free zones, highways, foreign investments in manufacturing and trade, strategic location and so forth.
The value of non-oil exports went up by 3.3% in 2010 to reach 83 billion AED. The main destinations of exports are the neighbouring Gulf countries, India, Pakistan and Africa. The packaging sector has benefited proportionally from the growth of exports.

Supply of materials and machinery
Packaging products are supplied mostly by local production, while packaging machinery and equipment are imported mainly from Germany and Italy (followed by the USA, Japan, France and The UK).
The types of packaging machinery and equipment which are in demand in the UAE are:
machinery for filling, closing, sealing or labeling bottles, cans, boxes, bags or other containers; Packing or wrapping machinery (including heat-shrink wrapping machinery); sealers; machines for making cartons, boxes, cases, tubes, drums or similar containers from paper pulp, paper or paperboard, other than by moulding; machines for sorting or folding mail or for inserting mail in envelopes or bands, machines for opening, closing or sealing mail and machines for affixing or cancelling postage stamps.

Domestic production
Packaging products are manufactured locally and meet most of the demand. Production includes tin and aluminium cans, closures, glass, plastic and PET containers and bottles, plastic bags and wrapping films, corrugated rolls, sheets, cartons, boxes, etc.

Per saperne di più/For more information
Italian Trade Commission di Dubai, [email protected]
 

www.ice.gov.it The organisation ICE - Agency for the promotion abroad and the internationalization of Italian companies (under interim management) - has established a close collaboration with the magazine ItaliaImballaggio. ICE‘s network of overseas offices will provide a regular update on the development of packaging in the short/medium term in given countries. Under observation, as a priority, the area of the Mediterranean rim, the Middle East and India: a focus which aims to offer points of interest to Italian companies to develop business opportunities. For further information on the sector contact [email protected].