Paper industry churns out success
The entry of companies in the paper industry from 1963 till sept 2018
dubai — The paper products industry has registered tremendous growth in Dubai during the past five decades and proven its resilience despite the challenging environment and slowdown in the global economy, latest data shows.
According to a report issued by the Business Registration and Licensing (BRL) Sector in the Department of Economic Development (DED), Dubai, the number of companies in the paper industry reached 208 until September 2018 compared to just 7 companies in 1963.
The number of companies has registered significant growth in the past 10 years as 94 firms representing different segments of the industry have started operations in Dubai. Twenty-nine companies commenced operations during 2008-’12 while another 65 were added in 2013-’18.
The report showed that bowls and boxes of cardboard account for the largest number of activities (100), followed by cans and paper containers (60), packing and packaging (46), paper napkins and towels (40) and paper bags (34). The number of workers in the paper industry reached 4,886 in September 2018.
Walid Abdel Malik, director of business registration division in the BRL sector, said economic diversification is one of the key drivers of Dubai’s economic prosperity and its transformation into a regional and global financial and business hub.
We continue to work closely with the private sector to promote productivity growth Walid Abdel Malik, Director of business registration division, BRL sector, DLD
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“Today, Dubai’s economy leads 5 non-oil sectors, including manufacturing, transport, storage and communications, real estate and financial services, wholesale and retail trade, and construction, which together account for more than 90 per cent of the emirate’s gross domestic product,” Malik told Khaleej Times on Saturday.
To further promote business practices in Dubai, he said the BRL sector offers targeted initiatives such as ease of start-up procedures, business registration, adoption of new e-services and value-added services for licensed business owners.
“We continue to work closely with the private sector to promote productivity growth, improve the quality of public services and support a dynamic business environment,” Malik said.
As per the report, projects in this industrial sector are economically viable and attract investment, reflected in the operational and survival rate of companies at 98 per cent. The increase in the number of new businesses highlights the increase in demand and investments in this sector.
Satish Khanna, general manager, Al Fajer Information and Services, said the global market for paper and paperboard manufacturing reached $482.4 billion in 2017 and is expected to reach $523.6 billion by 2022, at a compound annual growth rate (CAGR) of 1.7 per cent during 2017-22.
“It has been observed that AsiaPacific market for paper and paperboard manufacturing reached $231.5 billion in 2017 and the market is well-positioned to reach $250.2 billion by 2022, at a CAGR of 1.6 per cent during 2017-22,” Khanna told Khaleej
on Saturday.
The report highlighted the distribution of the companies according to the main areas in Dubai, with Bur Dubai accounting for the largest share (138), followed by Deira (70). The top sub-regions were Dubai Investment Park 1 (21); Al Quoz Industrial Area 4 (20); Eyal Nasser (11); Dubai Investment Park 2 (11); Al Mankhool (10); Umm Ramool and Jebel Ali 1 (9 each); Al Quoz 1 and Al Quoz Industrial Area 2 (8 each); Al Khabaisi, Al Souk Al Kabir, Al Qusais Industrial 2, Jebel Ali Industrial 1 and Riggat Al Buteen (6 each); and Al Qusais 1 (5).
The report pointed out that before purchasing machinery and equipment, businessmen must gather data and conduct a preliminary study on the volume of demand in the target markets, as the expected sales volume in the local market and export opportunities to neighbouring markets determine the production capacity of tissue paper production machines.