Report Description

GCC construction chemicals market is projected to grow at a significant rate in the upcoming years due to expanding infrastructure sector. Additionally, rapid urbanization in the region especially in counties like UAE and Saudi Arabia is further expected to support the growth of the GCC construction chemicals market.  Besides, increasing focus on sustainable construction and, the growing tourism industry in the region is further expected to create lucrative opportunities for the growth of the GCC construction chemicals market during the forecast period. The construction sector earns & contributes almost 6.7% to the overall GDP of the GCC region.

Construction chemicals, also known as specialty chemicals or building chemicals, are chemical formulations specifically designed for the construction industry. These chemicals are used in various stages of construction, from the initial preparation of the site to the final finishing touches. They provide a range of beneficial properties and functionalities to enhance the performance, durability, and aesthetics of construction materials and structures. Concrete is one of the most widely used construction materials, and construction chemicals play a crucial role in improving its performance. Concrete admixtures, such as plasticizers, accelerators, retarders, and waterproofing agents, are added to concrete mixes to enhance workability, strength, curing time, and resistance to water penetration.

Construction chemicals are used to protect structures from environmental factors, such as moisture, chemicals, and temperature fluctuations. Waterproofing chemicals, sealants, corrosion inhibitors, and protective coatings are employed to prevent deterioration, extend the lifespan of structures, and reduce maintenance costs. Repair and restoration chemicals are used to fix existing structural damage and reinforce weakened areas. Construction chemicals are also essential for ensuring the safety and structural integrity of buildings and infrastructure. Fireproofing materials, intumescent coatings, and flame retardants are used to enhance fire resistance. Adhesives, grouts, and anchoring systems provide strong bonds and secure structural connections.

Additionally, with a focus on sustainable construction practices, construction chemicals are used to improve energy efficiency in buildings. Thermal insulation materials, reflective coatings, and cool roof systems help reduce heat transfer, enhance energy performance, and contribute to environmental sustainability. Construction chemicals also play a role in enhancing the aesthetics and surface finish of buildings. Decorative coatings, colorants, texture enhancers, and surface protection agents are used to achieve desired appearances, textures, and finishes. These aspects are expected to accelerate the Gulf Cooperation Council market expansion for construction chemicals for the forecasted period.

Expanding Infrastructure Sector to Drive the GCC Construction Chemicals Market

The expanding infrastructure sector is indeed a significant factor that drives the growth of the GCC (Gulf Cooperation Council) construction chemicals market. The GCC countries, including Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain, have been witnessing rapid development in various infrastructure segments, such as residential buildings, commercial complexes, industrial facilities, and transportation networks. In 2022, the total number of infrastructure projects awarded in the GCC region is estimated to be around USD 22.8 billion, which is 11.7 percent more than last year. In Oman, there is a surge of three times in infrastructure projects estimated at around USD 1.1 billion. Hence, this surge in infrastructure projects creates a strong demand for construction chemicals, contributing to market growth.

The GCC countries have been hosting major international events and undertaking large-scale projects such as the FIFA World Cup 2022 in Qatar, the Expo 2020 in Dubai, and various mega real estate developments. These projects require significant construction activities, creating a substantial demand for construction chemicals to ensure structural integrity, safety, and aesthetic appeal. Along with events, the region experiences a significant rise in tourists every year due to business, desert, and religious tourism where the need for more places to stay is required. Such a growing need for hotels and resorts is expected to upsurge the demand for construction chemicals and propel the GCC construction chemical market growth. 

There is a growing emphasis on sustainable construction practices in the GCC region, including energy-efficient buildings, green infrastructure, and eco-friendly materials. Construction chemicals also play a critical part in achieving these sustainability goals by enabling energy conservation, water management, waste reduction, and improving indoor air quality. As a result, the GCC construction chemicals market is experiencing substantial growth and is expected to continue expanding in the foreseeable period.

Rising Government Investments in Infrastructure Projects Propel the GCC Construction Chemicals Market Growth

Rising government investments in infrastructure projects are a key driver of growth in the GCC construction chemicals market. Governments in the GCC region are actively allocating significant funds toward infrastructure development as part of their economic diversification strategies and long-term development plans. According to the Saudi Arab Government report, there is a significant increase of 77 percent in infrastructure projects compared to the last year 2021 which cost almost USD 9.3 billion worth of projects.  Apart from these, the KSA government has already invested in mega projects like NEOM (USD 500 billion), King Salman Energy Park, and King Salman Park through the Public Investment Fund (PIF) that is backed by the Kingdom of Saudi Arabia. Thus, these investments have a direct impact on the demand for construction chemicals in the GCC region.

GCC countries have formulated comprehensive infrastructural development plans that involve the construction of roads, bridges, airports, ports, railways, power plants, water and wastewater treatment facilities, and other critical infrastructure including Baynouna Solar Park, New Murabba. Government investments in these projects create a substantial demand for construction chemicals as they are essential for ensuring the quality, durability, and sustainability of the infrastructure.