Plastic and Polymers
03 March 2025
The plastic industry in the Middle East and North Africa (MENA) region heavily relies on petrochemical supplies, particularly from Gulf countries such as Saudi Arabia and Qatar. As major producers of polyethylene (PE) and polypropylene (PP), companies like Saudi Aramco and QatarEnergy play a crucial role in maintaining the flow of raw materials. In March 2025, the stability of this supply chain is under scrutiny due to fluctuations in global oil prices and logistical disruptions caused by geopolitical tensions in the Red Sea. Many industry players are working to increase local stockpiles and optimize production, such as through the expansion of petrochemical facilities in Jubail, to ensure a steady supply.
Global pressure to reduce plastic pollution is driving significant policy changes in MENA. The United Arab Emirates, for instance, has banned single-use plastic bags in Dubai since 2024, and similar regulations are expected to extend to other cities in the region by 2025. The plastic industry now faces the challenge of transitioning to recycled or biodegradable materials. Investments in recycling facilities, such as those made by Tadweer in Abu Dhabi, represent strategic efforts to align supply chains with sustainability demands. These changes not only impact production but also distribution, as demand for eco-friendly plastics continues to rise.
Digital transformation is becoming a key factor in improving the efficiency of the plastic industry supply chain in MENA. By 2025, major companies like SABIC are leveraging blockchain technology to track raw materials in real-time and using the Internet of Things (IoT) to optimize transportation. Logistics hubs such as Dubai and Jeddah exemplify how digitalization helps reduce waiting times and operational costs. This trend not only enhances the competitiveness of MENA's plastic industry in the global market but also supports expansion into sectors such as packaging and construction.
The plastic packaging sector remains the primary driver of demand in MENA, fueled by population growth, urbanization, and the export of food and pharmaceutical products. In 2023, the region's plastic packaging market was already valued at billions of dollars, and by 2025, this figure is expected to increase significantly. Recent developments may highlight production capacity expansions in countries like Oman or Bahrain, aiming to meet both domestic and international market demands. However, logistical challenges such as shipping delays due to longer maritime routes remain obstacles that need to be addressed.
Regional conflicts, including Houthi attacks in the Red Sea, continue to disrupt major trade routes in MENA. By late 2024, many shipping companies had rerouted through the Cape of Good Hope, adding costs and delivery time for plastic raw materials and finished products. In March 2025, the plastic industry in the region is likely to focus on resilience strategies, such as diversifying suppliers or establishing local warehouses. These efforts are crucial to maintaining a stable supply chain amid ongoing geopolitical uncertainties.
The plastic industry supply chain in MENA in 2025 stands at a critical juncture between opportunities and challenges. While dependence on petrochemicals offers a competitive advantage, sustainability pressures and geopolitical disruptions force industry players to adapt. With digitalization and market growth as key drivers, the future of this industry will largely depend on its ability to balance economic efficiency with environmental responsibility. For further information on how to get involved or learn more about the report's findings, contact Tradeasia International for insights and support.
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