M.A.H.Y. Khoory Group plans AED 1bn-plus PM4 paper machine at Union Paper Mills in Abu Dhabi
M.A.H.Y. Khoory Group has announced a new paper manufacturing line, PM4, at the Al Dhafra plant of its operating arm Union Paper Mills in Abu Dhabi, with investment exceeding AED 1 billion. The project will let Union Paper Mills diversify into premium containerboard grades and specialised paper for gypsum plasterboard, aligning with the UAE's Operation 300bn industrial strategy.
Why this mattersA new UAE containerboard line adds regional capacity and higher-value grades, sharpening competition for Gulf fibre packaging producers and importers.
- Investment in PM4 exceeds AED 1bn.
- PM4 will be built at Union Paper Mills' Al Dhafra plant in Abu Dhabi.
- The project lets Union Paper Mills move into premium containerboard grades and specialised paper for gypsum plasterboard.
- M.A.H.Y. Khoory Group announced the project on 22 October 2026.
- The project is aligned with the UAE's Operation 300bn industrial strategy and Make it in the Emirates initiative.
- Board Chairman Salahaldin Sharafi and Group CEO AbdelRhman Obaid commented on the PM4 project
- The investment is valued at over USD 272m (AED 1bn)
- Investment commitments announced at Propaper Dubai 2026 exceeded AED 1.3bn (USD 354m) across the Gulf, with the UAE taking the largest share followed by Oman.
- M.A.H.Y. Khoory Group's PM4 project was the largest single investment disclosed at the fair.