Plastics and Packaging cluster
The Kingdom of Saudi Arabia is rich in oil and gas, the key natural resources used to manufacture petrochemicals products, the feedstock for plastics and packaging.
Saudi Arabia has some 265 billion barrels of proven and recoverable oil, accounting for a fifth to a quarter of global oil reserves. It also has up to 258 trillion cubic feet of natural gas, giving Saudi Arabia the fourth-largest reserves in the world. The country's huge exports of oil and gas help to give it an annual current account surplus of $164.8 billion, or 23.3% of GDP.
The largest market in Middle East-North Africa (MENA), Saudi Arabia also offers: easy, tariff-free access to Gulf Cooperation Council and Greater Arab Free Trade Area markets; access to over 400 million consumers in the wider MENA area; the abundant energy needed for large-scale production; and close industrial-academic ties.
Furthermore, Saudi Arabia offers significant government commitment, support and incentives. The Ministry of Commerce & Industry and Ministry of Petroleum and Minerals Resources are particularly closely involved, using its targeted Industrial Clusters program to develop the plastics and packaging sector.
Industrial Clusters aims to:
- Make Saudi Arabia the service hub for consumer packaged goods (CPG) companies to export plastics and packaging worldwide
- Encourage and support further Saudi Arabian and foreign investment in the sector
- Reduce imports and increase exports
- Create and sustain employment
- Assist with national economic diversification