Market Trends of middle east engineering plastics Industry
Growing investments from the government and private players
- In the Middle East, Saudi Arabia is quickly emerging as one of the key markets for the electrical and electronics industry. Aside from the oil and gas industry, the country has a sizable consumer base and a broad range of industrial pursuits, contributing to the rapid annual increase in production for the electrical and electronics industry. Thus, electrical and electronics production in the region registered a CAGR of 18% from 2017 to 2019 in revenue terms.
- In 2020, the demand for consumer electronics for remote working and home entertainment increased due to the COVID-19 pandemic. In 2020, Saudi Arabia registered the highest smartphone penetration rate, around 97%, in the world, which enabled approximately 60% of Saudi customers to discover new sellers through social networks. Saudi Arabia faced a higher rate of e-commerce growth, nearly 60% (between 2019 and 2020), mainly due to the pandemic. The revenue from electrical and electronics production increased by 1.8% compared to the previous year.
- Electrical and electronic production is expected to witness a CAGR of 8.51% in value during the forecast period (2023-2029). The major driving component behind the growth is likely to be the growing investments from the government and the manufacturers like Samsung. Samsung has also been pitching its 5G wireless technology to the Middle East. Saudi Arabia implemented a 5G network in line with the Vision 2030 initiative. All such factors are expected to boost electronics production over the forecast period in the region.
Understand The Key Trends Shaping This Market
Download PDF
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Growing aircraft manufacturing capabilities to boost component production
- Rapid urbanization expected to drive the construction industry
- Israel dominating imports and exports of polyamides
- The United Arab Emirates to dominate PET resin trade
- Israel to dominate POM trade in the Middle East
- Volatile crude oil prices, coupled with geopolitical factors, to dictate resin prices
- Methods being developed to use eco-friendly glycerol to recycle PC to recover up to 98% of the plastic's monomer
- Growing Electrical waste of around 2.8 million tons is an opportunity for many ABS manufacturers across the region to produce R-ABS
- Lower interest rates and fuel rates to aid growth
- Saudi Arabia to lead the export and import of fluoropolymer
- Israel and Saudi Arabia dominating PC resin imports
- Israel and the United Arab Emirates to be the top importers of PMMA
- High production capacity makes Saudi Arabia the major exporter of ABS and SAN
- Saudi Arabia aims for a circular economy as part of its vision for 2030 which will promote recycling of engineering plastics
- The PET recycling rate in Saudi Arabia stood at 5-10% while the United Arab Emirates at 4-5% in 2021
