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Growth is still expected - Middle East Glass Markets not to be influenced by global crisis as other parts of the world

Post Time:Feb 09,2009Classify:Industry NewsView:418

All the world affected by the global economic crisis, but in fact the markets in the Middle East are solid enough not to be influenced by global crisis as other parts of the world, it is likely to slow growth in the Middle East glass industry, but growth is still expected to remain strong and the opportunities just keep coming in the Middle east according to the results of a new survey.
At this stage, the Middle East accounts for nearly 20 per cent of all international orders won by the world’s top 245 contractors, fuelling the demand for glass and glass processing machinery. Region wide there’s an increasing demand for new technology and suppliers for the glass industry. Now In the Middle East region, a large number of the main players in the glass industry are increasingly conscious that although companies are working to very stringent technical standards. The Middle East is now the frontrunner in the glass industry.

Egypt aims for glass self-sufficiency and increase the export.

Egypt is definitely playing a key role as a major producer of the glass in the Middle East & North Africa. Egypt is successfully transforming itself into a regional export and investment hub. In 2007 alone, its economy grew at 7.5%, while export growth stood at 45%. Egypt successfully attracted $13 bn in foreign direct investment in the same period, up from less than $1bn four years ago. Also the World Bank Group’s recent Doing Business 2008 Report that Egypt was ranked first in the world in terms of economic reform, compared to178 economies worldwide. Also Egypt already has big investments in Algeria as well as in Sudan, Syria and other Arab states.

In spite of continued global economic uncertainty, Egypt is facing the global financial crisis through a strong economy and policies that aim at containing the dimensions of the crisis. the Egyptian government is expecting 2009 to shape up to be an equally fruitful year. It has taken a series of measures to tackle the current global financial crisis to mitigate its impact on Egypt’s economy such as augmenting government investments by 15 billion Egyptian pounds in six months. Also some 600 million pounds has been allocated for the new industrial zones and 400 million pounds has been allocated for establishing new trade areas, one of them for the glass industry.

Moreover, it announced that the regulations to exempt the import of the equipment and machinery from taxes and duties for 12 months. These exemptions will be put into force from the beginning of January 2009, also the Egyptian Center for the modernization of industry will contribute with a financial support of 50% for the companies required to buy new machinery and line production. Moreover, it is announced introducing a new system for export. All these facilities in order to attract more industrial investments that will lead to an increase in production and exports.

With rising and constant demand for glass products due to the nature of the glass growth in Egypt - which in turn has lead to increasing numbers of processing plants opening up – it is announced recently of born 11 new glass factories that are planned to be in operation in the near future, by 2009 and the beginning of 2010 and others increasing their capacity  to cover the high glass demand in the region; 6 glass processing plants with capacity of 2000 meter per day  and 5 glass plants for glass lamp, glass tube, glass containers and  tableware with capacity 260 tonne per day. Egypt Glass Industry is expected to increase by 50% by 2008 & 2009, holding that Egypt indeed could emerge a profiteer from the crisis.

Furthermore, Wadi Glass Containers Co. will increase its production capacity to be 250 tonne per day , Kama Glass Co. with capacity to be 350 tonne per day, Middle East Glass Manufacturing with capacity to be 300 tonne per day and Arab Pharmaceutical Glass Co. with capacity to be 180 tonne per day. 40 % of the production will export to the Arabian countries to keep up with the booming in the region.

All of this is reflected in the fact that Glass World Exhibition which has received a good response from the world top’s glass leaders to exhibit in the edition of 2009 surpassed its bookings level for the 2007 and 2008 shows, also Glass World Exhibition  will undoubtedly welcome new participants to present their latest developments and innovation technologies during the four-long days and explore business opportunities with the very richest markets in the Middle East & North Africa.

Source: Nile Trade FairsAuthor: shangyi

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