UAE to reduce export of paper, leather and aluminium scrap

DUBAI / WAM

The Ministry of Economy discussed ways to minimise the export of paper, leather and aluminium waste to other countries in order to provide raw
materials for the national industry.
This came during a meeting chaired by Abdullah Sultan Alfan Alshamsi, Assistant Under-Secretary for Industrial Affairs at the Ministry of Economy. The practice has caused a shortage of raw materials for local factories that have to resort to imports at relatively high prices, even as local industrial wastes are exported at low prices, particularly to some Asian countries.
The meeting was briefed that such practice enhances the competitiveness of foreign products in the local markets at the expense of national products, consequently reducing the contributions of the industrial sector to the UAE’s GDP.
It was attended by representatives from federal and local government agencies including the Ministry of Finance; the Ministry of Climate Change and Environment; the Federal Customs Authority; the Departments of Economic Development in Dubai, Sharjah, Ras Al Khaimah, Ajman and Umm Al Qaiwain; the Fujairah Department of Industry and Economy; Sharjah Municipality and Fujairah Municipality.
Alshamsi said that the issue is of strategic importance as support for the development of national industries are vital to the economic diversification policy adopted by the Ministry of Economy in line with UAE Vision 2021.
He revealed a statistical study conducted by the ministry on exports of the mentioned industrial wastes from 2010 to 2014 showing that wastepaper exports increased during the study period by 54 percent, while leather waste and aluminium scrap exports rose by 33 and 32 percent respectively.
Alshamsi further mentioned the existence of six paper mills in the UAE with a total capacity of 396,000 tons and total annual revenues of up to AED 1.1 billion. Three of them, he said, use wastepaper to produce cardboard rolls.
He added that 66 percent of the total wastepaper available in the country is exported overseas, leaving only 34 percent for domestic use. He explained that this generates a shortage in meeting the needs of all three plants estimated at 55,000 tons, which is compensated for by importing at higher prices.
The Assistant Under-Secretary noted that a new paper plant in Abu Dhabi scheduled for launch in January 2017 is expected to further increase the shortage by around 200,000 tons. He pointed out a similar situation for leather waste and scrap aluminium.
The meeting concluded with a recommendation to submit a proposal to the Council of Ministers seeking the imposition of fees on wastepaper and raw leather waste exports. The objective is to prevent excessive exports that deprive the national industry of the said materials, along the lines of an earlier Cabinet resolution on the imposition of export
duties for scrap iron.