GCC Construction Chemicals Market to Grow at 7% through 2021
Rising
government spending on infrastructure projects coupled with growing awareness
about the benefits of construction chemicals to drive demand for construction
chemicals in GCC through 2021
According to TechSci Research
report “GCC Construction Chemicals Market By Type, By End User, Competition
Forecast & Opportunities, 2011 – 2021”, construction chemicals
market in the GCC region is projected to grow at a CAGR of over 7% during 2016 to
2021. Demand for construction chemicals, which are used in construction
materials to speed up construction activities or improve durability of existing
structures, is expected to grow on account of rising investments in construction
of residential complexes as well as commercial sector. Additionally, rising
expenditure on infrastructure projects by the government is further aiding the region’s
construction chemicals market. Some of the major
companies operating in the GCC construction chemicals market include BASF,
FOSROC, Sika, Dow Menat, Chryso Gulf and Saudi Basic Industries Corporation.
Concrete admixtures and
waterproofing chemicals are the most widely consumed construction chemicals in
the region, due to growing use of these chemicals in residential and commercial
structures. Demand for protective coatings as well as adhesives and sealants is
also growing in the region. Other major construction chemicals consumed in the
GCC countries include flooring chemicals, grouts, mortars, anti-corrosive
agents, etc. In 2015, Saudi Arabia accounted for the largest share in GCC
construction chemicals market, on account of large investments on
infrastructure activities as well as lucrative schemes offered by the
government to attract FDI in the construction sector.
“Increasing need for
economic diversification for lowering oil dependence has been resulting in
rising investments towards construction activities in the GCC region.
Additionally, huge infrastructure and industrial projects with upcoming
mega events such as 2022 FIFA World Cup in Qatar and the World Expo 2020 in
Dubai is projected to drive demand for construction chemicals in GCC countries
in the coming years. Moreover, various government initiatives for construction
of green buildings aimed at improving energy efficiency, reducing pollution,
increasing water savings, enhancing indoor air quality, and decreasing
operation costs, is leading to higher penetration of sustainable and green
construction chemicals, thereby fueling growth in GCC construction chemicals
market.’’ said Mr. Karan Chechi, Research Director with TechSci Research, a
research based global management consulting firm.
In addition, rapid
growth in population and demographic changes due influx of foreign workers as a
result of better job opportunities resulted in a shortfall in housing
units in the GCC countries. This resulted in an increase in the demand
for affordable residential units for low- and middle-income population, which
led to increase in construction activities in the region, in turn increasing
demand for construction chemicals in the country.
TechSci Research
report further highlights that the government in the GCC states eased mortgage
lending rules and implemented accessible loan mechanisms in countries such as
Qatar, Oman and Saudi Arabia for improving sale of residential properties by
buyers who face difficulties in securing mortgages. For instance,
in 2015, Government of Saudi Arabia planned USD66 billion affordable
house-building program, while the Government of Kuwait announce plans to
construct 45,000 housing units in the country. Saudi Arabian Monetary Agency
(SAMA) issued the real estate mortgage law called as Real Estate and Financing
Law in 2012, which includes the following 5 laws -
- Real Estate Financing Law: SAMA
regulates the real estate finance sector, where this law provides
authorization and licensing of banks, finance companies, real estate
refinancing companies and cooperative insurance companies to enter the
real estate sector in the region.
- Finance Companies Control Law: This law
provides a regulatory and supervisory framework for real estate finance,
general leasing finance, finance of credit cards and consumer finance in a
Shari’ah-compliant manner.
- Financial Leasing Law: This law
specifies rules for financing leases (including of real estate, immovable
or movable assets, utilities, services, or other rights such as
intellectual property).
- Real Estate Mortgage Law: This law
prescribes a new framework for financers to mortgage real estate for the
first time, and also allows provision for second ranking mortgages
including registration of real estate mortgages.
- Enforcement law: This law
permits an enforcement judge to hear disputes and assist in the recovery
of an asset for and on behalf of the financier, upon a borrower’s default.
Out
of these 5 laws, SAMA published the final draft regulations for real estate
financing law, the finance companies control law and the financial leasing law
on August 27, 2012. Oman's Five-Year Development Plan (2011-2015) also laid
emphasis on housing projects as well as housing loan projects.
“GCC
Construction Chemicals Market By Type,
By End User, Competition Forecast & Opportunities, 2011 – 2021’’ has analyzed the
potential of the construction chemicals market and provides statistics and
information on market sizes, shares and trends. The report will suffice in
providing the intending clients with cutting-edge market intelligence and help
them in taking sound investment decisions. Besides, the report also identifies
and analyzes the emerging trends along with essential drivers and key challenges
faced by the industry.
- GCC Construction Chemicals Market Size, Share & Forecast
- Segmental Analysis – By Type (Concrete Admixtures, Waterproofing Chemicals, Protective
Coatings, Adhesives & Sealants & Others), By End User
(Infrastructure & Real Estate)
- Regional Analysis – Saudi Arabia, UAE, Qatar, Kuwait, Oman and
Bahrain
- Changing Market Trends & Emerging Opportunities
- Competitive Landscape &
Strategic Recommendations