The Plastics Sector in the GCC Region
In 2020, the global plastic market was valued at approximately $579.7 billion, and it is expected to reach $750.1 billion by 2028, growing at a compound annual growth rate (CAGR) of 3.4%.
In the GCC region, the plastics industry has expanded significantly over recent decades, driven by government efforts to diversify the economy and reduce reliance on oil and gas as the sole sources of income. Additionally, the rising demand for plastics in various industries, such as automotive, packaging, construction, and water piping, has further fueled the sector’s growth.
A report by the Gulf Petrochemicals and Chemicals Association (GPCA) indicates that plastics are the second-largest industrial sector in the region, with products valued at $108 billion.
For those interested in the Saudi Arabian plastics industry, “Mashroo3k” presents the latest key statistics that serve as a guide for potential investors:
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Saudi Arabia accounts for approximately 72% of total plastic production in the GCC, while the GCC region as a whole represents 9% of the global plastics industry.
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Saudi Arabia ranks eighth globally in plastic production, holding 2% of the world’s total polymer production.
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By the end of Q2 2021, the number of rubber and plastic factories in Saudi Arabia exceeded 222, representing 11.9% of all operational factories in the country.
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According to the Standard International Trade Classification (SITC):
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Saudi exports of “plastics in primary forms” were valued at SAR 67,824,000,000, with a total weight of 16,978 tons.
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Exports of “plastics in non-primary forms” were worth SAR 2,403,000,000, weighing 384 tons.
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In Q2 2020, the export value of plastics and rubber products was SAR 13,723,000,000, rising to SAR 22,491,000,000 in Q2 2021.
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The operational expenses for rubber and plastic product manufacturing activities now exceed SAR 10,103,147,000, while the total revenue for these activities reached SAR 20,148,798,000.
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By 2027, operational expenses in the rubber and plastics manufacturing sector are expected to increase to SAR 20,264,052,000, while operational revenues are projected to reach SAR 32,477,785,000.
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This represents an 8% growth rate in operational expenses and a 5.4% growth rate in revenues.
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Future Outlook
“Mashroo3k” emphasizes that global demand for plastics is expected to triple by 2050. Data also indicates that per capita plastic consumption in the GCC is significantly high, with the average individual consuming approximately 94 kg of plastic annually, according to the latest available statistics.