Dubai as plastics processing center

Most people agree that Dubai has come of age as an ideal tourist destination with an excellent business environment. There has always been a general belief among international business experts that there are vast opportunities in Dubai''s rapidly developing business, leisure and tourism activities. The emirate is now the site of today''s world-class five-star hotels and recreational establishments, while at the same time being a frontrunner and trendsetter in all fields of business. Thanks to its ability to embrace cultural diversity and innovations, Dubai has now become a strong market with 1.5 million population and over 80 nationalities. The infrastructure boom has created a region with excellent support services for trade. For instance, Jebel Ali port in Dubai boasts of being the largest man-made harbour in the world. Its quad-lift cranes can hoist four 20-foot containers at once. The port''s second terminal is expected to raise its capacity to 14 million containers. But the current global economic crisis did not spare even this fast-growing economy. In February, oil-rich neighbor Abu Dhabi bailed out Dubai with the central bank for the United Arab Emirates (UAE) buying $10 billion worth of Dubai''s five-year bonds. The amount would help state-linked companies to refinance their debts. But the Dubai government reportedly claims to have $90 billion in assets on top of the $260 billion held by its corporations. Even with the not-so-good forecast as the world braces itself for the worst of the global economic slump, Dubai is expected to hold its special place in the region. Real estate, construction and exports are currently under pressure that real growth in gross domestic product (GDP) in Dubai is projected to fall to only about 2.5% or slightly less than that this year compared with about 8% in 2008. In January, Dubai is expected to run its first budget deficit ever of Dhs4.2 billion ($1.14 billion) this year. A total of $582 billion in construction projects are also on hold across the UAE as investors adapt a wait - and - see attitude. Plastics manufacturing remains strong The plastics industry in the Middle East has shown remarkable development in the past that the industry is expected to grow by 20% annually. The plastic products market in Dubai is considered one of the largest markets in the region and plastic production has diversified in response to demand of the various sectors relying on plastics products. Adding impetus to growth is the petrochemical industry in the UAE which has witnessed a huge increase in the last decade -- with investments in the sector accounting for about 22% of the total manufacturing investments. Thus, the plastic industry as downstream activity in the oil industry has a considerable potential. Plastics exports in 2007 reached over Dhs 1 billion ($272 million), according to the Dubai Export Development Corporation (EDC). Annual production of plastics reaches a staggering Dhs1.3 billion ($354 million) with 75% of production being exported. Around 500 companies are engaged in plastic manufacturing with investment of about $732 million. Broken down, 153 companies are engaged in plastic bags and packaging, 154 in pipes and hoses, 68 in artificial sponge and other plastics, and 130 in other plastic products including glass fibre. Dubai''s plastics industry integrates with related UAE industries and benefits from many inter-linkages, while some of the industries in other emirates use Dubai as an export point. It also benefits from a number of positive factors fuelling growth for its plastics industry, the most important of which are the diversified domestic and regional markets and the well-established technology. To date, the industry produces a wide range of products targeting a diversified base of consumers and industrial users mainly in food industry, cosmetics, household, construction, irrigation, pharmaceutical iAir Max 90 Ultra 2.0 Essenti