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United Arab Emirates
2008-12-01
Industry Overview
The United Arab Emirates is a dynamic market in Middle East with its inviting business environment. The country has transformed itself to a truly international center for commerce and trade. The overall performance of the UAE’s economy is dependent on oil and gas services. The non-oil segment of the UAE’s economy is also experiencing strong growth, particularly in petrochemicals and financial services sectors. The federal government has invested heavily in sectors such as aluminum production, tourism, aviation, re-export commerce, and telecommunications. But this hasn’t triggered the demand for packaging and therefore packaging machinery.

The majority of UAE’s packaging exporters are manufacturers of plastic packaging, while the minority manufacture metal, wood, paper, cardboard and glass packaging. Most exporters are manufacturers for the food industry. Only a smaller number of exporters manufacture machinery, packages for transport, labels, special print items for packaging, etc.

Exportation of packaging is especially problematic due to the voluminous nature of packaging as well as the fact that packaging for the food industry relies on basic production technologies that are not unique to the country. Furthermore, packaging is a type of “service” that product manufacturers prefer to keep close at hand and therefore select local suppliers. Exporters are advised to have local distributors or agents. The commercial services would provide a list of potential operators in the United Arab Emirates.

Packaging exporters offer a competitive advantage in the production of sophisticated packaging materials, packaging machinery, combined machinery and packaging materials systems, as well as the knowledge and ability to manage and organize packaging projects/production plants. Most of the export is for markets such as countries in Middle East and Africa. Exports to the US and the UK are also on the rise. India, China and Japan constitute the primary potential markets for increases in exports.
Sources:  www.export.gov    www.euromonitor.com
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