UAE Paper Industry in Strategic Realignment: Government Interventions Cushion Supply Chain Shocks
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Regional industry stalwarts to assemble at ProPaper Dubai 2026 on October 20- 22,2026 to discuss the way forward, sustainability and resilience amidst cost inflation across raw material procurement and shipping, while exports are hit by geopolitical bottlenecks
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UAE paper mills shift priorities focusing on domestic market and neighbouring GCC countries
DUBAI, October 21, 2026: —The US$2 billion UAE paper industry players are realigning their strategies to sustain growth, focusing more on the domestic and neighbouring GCC markets to counter geopolitical headwinds, rising raw material costs and logistics bottlenecks hampering exports to global markets.
At the premium B2B trade event, ProPaper 2026 in Dubai, experts said the UAE paper industry had remained resilient and stable, thanks to high-impact government support through a slew of measures, including `Green Corridors’ and alternative supply chain routes to ease trade gridlocks in the wake of disruptions at the Strait of Hormuz.
“Initiatives such as Make it in the Emirates provide a strong foundation. But our ambition should extend beyond increasing manufacturing capacity. We should ask what materials capabilities our region needs to develop to compete in the industries of tomorrow. By connecting resource recovery, manufacturing and material innovation, we can build stronger industrial ecosystems and create greater regional value,” said Abdel Rahman Obaid, Group CEO, M.A.H.Y. Khoory & Co,
Echoing the trend of strategic realignment in the UAE paper industry, Majid Rasheed, Managing Director of Star Paper Mill, said: “Our immediate priority is to serve the domestic UAE market, where our products have received a positive response in terms of quality, service and reliability of supply. We have also begun exporting to neighbouring GCC markets by road. However, road freight remains expensive, while sea exports are currently commercially unviable because of the prevailing logistics disruptions and elevated shipping costs.”
For the UAE, supply chains are more than just the movement of goods. They are the lifelines that keep our economy moving, our industries operating and our people supplied with the essentials they need every day, said Hamad Abdulla Al Ghurair, SVP, Special Projects & Commercial, PURL by Al Ghurair.
“This year, our supply chains have been tested as never before. And yet, the UAE’s supply chains continued to function. Our markets remained supplied, our economy continued to operate, and the country demonstrated remarkable resilience. That did not happen by chance. It was the result of decisions taken well before the crisis, as well as swift and coordinated action during it. Today, geography may define our challenges, but it does not have to define our limits,” he added.
The overall cost inflation the UAE paper mills are facing include an over 32 per cent spike in imported pulp prices and a staggering three to four times rate hikes in shipping and transportation costs.
Prior to the shipping disruptions, the paper industry had registered one of its strongest growth phases in 2025 with e-commerce expansion and surging demand for paper packaging. According to Grand View Research, paper packaging demand grew at 5 per cent last year, with the broader Middle East touching US$ 17.43 billion compared to USD 16.7 billion in 2024, with the GCC led by Saudi Arabia and the UAE was at an estimated US$13 billion.
“ProPaper 2026 has been conceived as a platform for showcasing and highlighting the long-term vision and resilience of the UAE paper industry. Innovation and sustainability are two key drivers of growth for the paper industry and ProPaper provides an opportunity to industry players to collaborate on these fronts,” said Jeen Joshua, Managing Director Verifair, organisers of the B2B event.
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