Despite ongoing oil glut, UAE and KSA can provide big opportunities for the coatings industry, said Anichem managing director
The instability of crude oil prices has had an effect on almost all the industries and sectors in 2015 and there is strong speculation that it will continue to remain so in 2016 as well. Middle Eastern nations have announced cuts on government spending for this year in light of this instability. A few have still remained strong in the face of aftermath of the steep drop in crude oil prices.
Dr. Thazyasseril Vijayan, managing director of Anichem FZCO, said, ?The non-oil economy has performed far better than expected. After the UAE, the Kingdom of Saudi Arabia still holds many opportunities for our business to grow despite budgetary cuts in the nation.? He warned that this year, the coatings industry should avoid being aggressive and should settle for low to moderate risk.
The other challenge Vijayan sees for coating companies in 2016 is the increased need to meet sustainable and green production requirements and for them to be incorporated into the existing line of finished products and raw materials. He believes that environmentally friendly chemicals will be increasingly important for suppliers to the coatings industry this year.
Vijayan highlighted this challenge and also stressed the importance of support from government authorities. ?Only if the relevant government authorities make new regulations that make the consultants approve only environmentally friendly will there be a significant improvement in the current situation.?