The caps market in the Middle East is a hot segment of the caps industry. The Middle East has a population of around 400 million people, with about 5% of that being made up by children. The Middle East is the second largest consumer of caps and headwear in the world. The UAE alone has an estimated population of 2 million children under 10 years old.
The growth rate for the caps industry in the Middle East is expected to be around 8-10% per annum over the next few years.
Caps, or cap-and-trade systems, are meant to reduce pollution by forcing companies that produce carbon dioxide to buy permits that allow them to emit a certain amount of the greenhouse gas. The idea is that the permits will be expensive enough that companies will find it cheaper to reduce pollution than buy more permits.
The United States has had a cap-and-trade system for power plants since 2005. It has reduced emissions by about 11 percent, according to an analysis by Resources for the Future, a research group based in Washington.
In Europe, caps have been used in some industries since 2005. But they were replaced by a tax on carbon emissions from all sources starting in 2013. Those taxes started at 30 to 40 AED per metric ton of carbon dioxide and are expected to rise steadily over time.
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