The purpose of this article is to provide you with information on how to start a plastics business in the United Arab Emirates.
Plastics Business Industry
The plastics industry in the Gulf Cooperation Council (GCC) has been growing at an average of 20 percent annually. Currently, the plastic products market in the UAE is considered one of the largest in the region. Plastic consumption has surged rapidly and has exceeded 100 kg per capita in the UAE.
While production is mainly for the domestic market, the Dubai plastic industry exports are a growing part of the segment.
Significant Investments in the Plastics Business Sector by KIZAD
Khalifa Industrial Zone in Abu Dhabi (KIZAD), a fast-growing industrial zone, has launched KIZAD Polymers Park, which will play an integral part in the plastics sector in the UAE. The Park aims to produce 400 kilo tonnes of plastic products per year and contribute USD 2.5 billion to UAE’s GDP by 2025. In addition, the goal is to attract 80 new firms to develop local facilities over 2 million sq. m of industrial land.
KIZAD Polymers Park and Abu Dhabi National Oil Company (ADNOC) aim to jointly grow UAE’s plastics industry through a partnership that will offer companies cost-effective access to polymers. The plan is to cater to various plastic segments, such as packaging, construction, and end-use customers, such as household goods, agriculture, and 3D Printing.
Companies incorporated in the Polymer Park will significantly benefit from Khalifa Port which is in proximity and has connectivity to both regional and global markets via shipping lines. Foreign firms can also take advantage of full foreign ownership via the free zone or benefit from the Park’s flexibility and choose a mainland-based license, both with the benefit of full profit repatriation.
Staring a company in KIZAD is exceptionally easy; click here for more details. Incorporation documents can be submitted via the dedicated online portal for the free zone. If you require a license in which several external procedures such as environmental assessments are needed, we recommend you hire the services of a seasoned consultant.
Jebel Ali Free Zone – a Major Hub for the Plastics Industry
The Jebel Ali Free Zone (JAFZA) has a dedicated section in its industrial zone called ‘Chemicals and Plastics Field’ for the rubber, plastic, and chemicals sectors. Most international and well-established local plastic brands are incorporated within this jurisdiction.
JAFZA has modern warehousing, access to one of the best seaports and airports in the region, and a strong network of upstream and downstream suppliers. In other words, JAFZA can meet all your needs from start to finish. Another factor to consider is the proximity to Dubai and access to the workforce this offers.
Incorporation costs at JAFZA tend to be on the higher spectrum, and company incorporation can drag out over several weeks. However, if you hire a reputable consultant experienced in dealings with the local authorities, the time frame can be significantly reduced. For steps on how to incorporate, please click here for more details.
Your Success Could Depend on Selecting the Right Location
As with any business, selecting the right location can play a big factor in the long-term success of your business. You will need to factor in things such as the ability to attract workers for your site, connections to transport and logistics systems, and long-term development goals in the jurisdiction.
Let our experts help you identify the best jurisdiction to start your company and simplify the process of company formation. We offer competitive rates and a wealth of experience in this field.
Leave a reply