UAE Plywood Market By Wood Type (Softwood plywood, Hardwood plywood), By Grade (Moisture Resistant, Boiling-Water Resistant, Fire Resistant Grade, Others), By Application (Residential, Commercial, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F

UAE Plywood Market was valued at USD 947.78 Million in 2024 and is expected to reach USD 1,224.77 Million by 2030 with a CAGR of 4.21% during the forecast period.

The UAE plywood market remains robust and dynamic, supported by ongoing construction and renovation activities across residential, commercial, and infrastructural sectors. With urbanization continuing at a fast pace, plywood is increasingly preferred for applications such as interior fit-outs, formworks, paneling, furniture production, and marine projects. Major drivers include government-led infrastructure programs, tourist hospitality expansion, and demand for sustainable and higher-grade plywood.

A distinguishing feature of this market is its segmentation by product grade and wood type. Moisture-resistant (MR) and film-faced plywood are particularly popular in formwork and exterior applications in the UAE’s humid and coastal climate. Marine-grade and fire-resistant variants are in demand due to strict regulatory standards in building codes, especially in high-density zones like Dubai Marina and Abu Dhabi’s tourism precincts.

Logistically, the UAE serves as both an importer and a re-export hub, leveraging its strategic port infrastructure to import plywood panels from Southeast Asia and Europe. This re-export functionality also allows local traders to cater to the broader GCC region. Moreover, local value addition—lamination, specialized finishing, pre-cut panels—enhances competitiveness, especially among regional distributors and big-box building-material retailers.

Sustainability is emerging as a key theme. With increasing corporate social responsibility and regulatory pressure, suppliers are more frequently offering FSC- or PEFC-certified plywood, especially to palm-influenced hospitality and real-estate developers. This green pivot is mirrored in the introduction of formaldehyde-free adhesives and low-VOC finishes across several premium product lines.

Competition in the UAE plywood market is both vertical and horizontal: local manufacturers/distributors coexist with global brands. Domestic players excel in niche/high-volume commercial and marine segments, while established international brands are gaining ground through their eco-certified and fire-rated ranges. Strategic alliances and distributorship agreements have further fueled this trend.

Pricing remains competitive, although it tends to spike during periods of raw-material shortages or freight bottlenecks—often observed during global supply disruption events. Yet trade in the UAE remains resilient thanks to flexible inventory management and integrated warehouse/logistics setups across the Emirates.

The UAE plywood market benefits from strong demand across construction and renovation, diversification of product grades, evolving sustainability trends, and a strategic position as a regional trade hub. As regulatory and environmental expectations intensify, the market is poised for further maturation in product quality, supply chain transparency, and niche specialization.

Key Market Drivers

Infrastructure & Construction Expansion

The UAE’s ongoing infrastructure development continues to be one of the strongest drivers of plywood demand. Across Dubai, Abu Dhabi, and the Northern Emirates, more than 120 mega infrastructure and real estate projects are underway, leading to substantial use of film-faced and moisture-resistant plywood for concrete formwork and temporary structures. Annual construction permit approvals have risen by approximately 15%, with local contractors reporting a 20% year-on-year increase in plywood consumption, particularly in the 18mm and above thickness range used for structural applications. Demand from public sector projects—including roads, hospitals, and schools—has grown by 18%, driving up procurement of fire-rated and weather-resistant plywood. In parallel, the implementation of GCC-wide connectivity corridors, such as the UAE-Saudi road and rail links, has led to bulk material movement that supports nearly one-fifth of plywood distribution volumes through UAE ports and storage facilities. Moreover, plywood is used in temporary labor camps and on-site warehousing, further reinforcing its relevance in the construction value chain. As the UAE continues its smart city and housing vision, plywood remains a staple in the early-phase and mid-stage construction cycle, making infrastructure expansion a foundational demand engine.

Hospitality & Tourism Fit-Outs

The UAE’s hospitality and tourism boom—fueled by events, luxury branding, and global visitorship—has had a strong impact on plywood usage, especially in the fit-out segment. Currently, there are nearly 200 new hotel and resort developments across the Emirates, most of which involve extensive use of plywood in ceiling panels, wall claddings, cabinetry, and partition systems. The average plywood consumption per upscale hotel project has increased by 25%, with marine-grade variants accounting for the majority in coastal properties such as those on Saadiyat Island or Palm Jumeirah. In this segment, demand for fire-rated plywood has surged, now making up approximately 30% of all interior project plywood orders. With a notable increase in green building certifications in hospitality (such as Estidama and LEED), formaldehyde-free and low-VOC plywood panels are increasingly required by interior contractors. Luxury villas and branded residences are also contributing, sourcing over 10,000 cubic meters of high-density plywood annually, primarily for bespoke joinery and architectural millwork. As Dubai and Abu Dhabi continue to position themselves as regional tourism and event hubs, the plywood industry directly benefits from interior design evolution and rapid turnover of hospitality interiors.

Residential Renovation Wave

Residential renovations are another key force behind plywood demand in the UAE. Across urban centers like Dubai Marina, Al Barsha, and Khalifa City, a growing number of households are investing in remodeling efforts, driven by changing lifestyle needs, interior aesthetics, and an influx of middle-class residents. Recent surveys suggest that over 40% of homeowners in the UAE’s urban zones have initiated some form of interior renovation within the past two years. In response, plywood sales linked to residential upgrades have grown by roughly 30% annually. Most of this demand focuses on wardrobes, modular kitchens, decorative wall panels, and furniture backs—areas where affordability, cut-to-size service, and ready finishes matter. The majority of plywood products used fall within the 8–18mm thickness range, and softwood plywood now represents nearly two-thirds of the volume supplied for home projects. There's also an evident uptick in customized veneer overlays and pre-laminated sheets, catering to premium residential clients. Moreover, home improvement retail chains have reported a 28% increase in demand for prefabricated plywood furniture kits and modular components. The do-it-yourself culture, while still emerging, is contributing to this trend as well. In sum, the renovation wave has solidified the role of plywood in contemporary residential interiors, adding steady bottom-line support to the market.

Sustainability & Environmental Compliance

As environmental regulations gain traction in the UAE, sustainability has become a powerful market driver for the plywood industry. The number of distributors offering certified plywood—such as FSC and PEFC—has grown by over 45% in the last three years, responding to rising buyer sensitivity toward ethical sourcing and low-emission materials. Currently, green-certified plywood accounts for approximately 20% of the total trade volume, with larger uptake from commercial buildings, schools, and healthcare facilities. Semi-formaldehyde-free plywood panel sales have grown by 35% year-on-year, largely driven by demand from wellness-focused developments and green office campuses. Additionally, the volume of low-VOC certified plywood used in interiors has expanded by nearly 40%, with contractors in the hospitality sector mandating eco-compliant materials in projects targeting sustainability awards. In terms of pricing, customers in Dubai and Abu Dhabi have shown a willingness to pay a 10–15% premium for plywood that meets environmental benchmarks. This has encouraged suppliers to invest in more sustainable processing methods and adhesives. Furthermore, upcoming building codes are expected to make green materials mandatory in select public tenders. The pivot toward sustainability is not merely a trend but a directional shift in how the UAE plywood market is evolving, shaping long-term purchasing behavior and supplier strategies.

Trade Connectivity & Logistics Advantage

The UAE’s strategic location and superior logistics infrastructure offer a distinct edge to the plywood market. With direct shipping access from Southeast Asia, average sea freight times have decreased by nearly 25% over the past five years, facilitating faster inventory turnover and reducing holding costs. This logistical advantage has made the UAE a preferred re-export hub for plywood, especially to markets such as Oman, Qatar, Bahrain, and parts of East Africa. Approximately 18% of all plywood processed through UAE ports is re-exported regionally, supported by free zone warehousing and bonded inventory management systems. In Dubai’s Jebel Ali and Sharjah’s Hamriyah Free Zone, plywood stock can be pre-processed—cut, laminated, or coated—before being shipped forward. These value-added services now contribute to over 35% of distributor revenues, as clients increasingly demand project-ready materials. Additionally, improvements in internal distribution networks across the Emirates mean that over 500 final delivery points are active in the domestic market, enabling timely fulfillment to construction sites, showrooms, and retail outlets. Plywood traders also benefit from flexible customs clearance procedures and digital port tracking systems that have cut down logistical delays by up to 30%. Altogether, this trade and logistics ecosystem creates a stable and agile supply chain that directly enhances market resilience and responsiveness.

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Key Market Challenges

Raw Material Dependency and Price Instability

The UAE plywood market faces a critical challenge due to its dependence on imported raw materials. Since the region lacks sufficient forestry resources, nearly all the timber used for plywood manufacturing is imported from overseas. This creates high sensitivity to global price fluctuations, currency shifts, and shipping delays. When global timber prices surge due to shortages or geopolitical events, plywood importers in the UAE see their margins squeezed. Many suppliers struggle to forecast material costs, causing uncertainty in contract pricing and order commitments. In recent years, volatility has led to month-to-month pricing differences of up to 20%. Smaller suppliers often operate without long-term procurement contracts, which exposes them to cost shocks that they cannot pass on to buyers. Additionally, shipping and customs delays have sometimes extended lead times by up to four weeks, disrupting project timelines and client relationships. These fluctuations make it harder for companies to plan inventory, manage cash flow, or offer stable quotations. As a result, the plywood supply chain remains vulnerable and reactive rather than strategic.

Rising Popularity of Alternative Panel Materials

The growing acceptance of alternative engineered panels poses a major challenge to plywood suppliers. Materials like MDF, OSB, particle board, and even plastic-based panels are gaining traction due to their lower cost, smoother surface finish, and ease of customization. MDF, for example, has been increasingly preferred in modular furniture and cabinetry due to its clean finish and ability to hold paint evenly. OSB panels, though rougher, are used in structural applications and cost 10–15% less than standard plywood. These substitutes are particularly attractive in residential projects and budget-sensitive commercial developments. Plastic-wood composites are also emerging, promoted for their moisture resistance and termite-proof properties. For plywood suppliers, this competition forces them to differentiate based on strength, durability, and brand trust. However, many buyers, especially contractors working on tight budgets, tend to prioritize cost and overlook performance gaps. This shifts market share away from traditional plywood, creating downward pressure on sales volumes and price points. Over time, the plywood segment could lose relevance in certain market categories unless it innovates and educates end users.

Sustainability Compliance and Environmental Pressures

Increasing demand for sustainable products has created pressure on the plywood industry in the UAE to meet new environmental expectations. While green building standards and eco-conscious procurement are becoming more common, aligning with them can be costly. Sourcing FSC- or PEFC-certified plywood involves additional procurement costs and complex supply chain traceability. Environmentally friendly adhesives, low-formaldehyde resins, and VOC-free finishing add to production expenses by 10–20%, making it difficult to remain price competitive. Moreover, construction companies and developers often demand certification proof, documentation, and audit trails, which many smaller plywood suppliers are ill-equipped to provide. Non-compliance could result in exclusion from large public tenders or green building projects. At the same time, there’s limited domestic infrastructure to test and validate environmental claims, forcing companies to rely on overseas labs and certifications. This increases timelines and expenses. Additionally, the push for sustainability creates reputational risks—brands that fail to comply may be labeled environmentally unfriendly, leading to lost business and poor brand perception. Navigating these regulatory and market-driven sustainability demands remains a major operational hurdle.

Durability Issues in Harsh Climatic Conditions

The UAE’s extreme weather conditions—especially high humidity, coastal salt exposure, and soaring summer temperatures—can challenge the durability of plywood products. Unless properly treated, plywood panels tend to warp, delaminate, or degrade over time when exposed to moisture or temperature fluctuations. In coastal cities like Dubai or Abu Dhabi, unprotected plywood used in scaffolding, outdoor joinery, or construction formwork often fails prematurely. Contractors have reported higher-than-expected replacement cycles, increasing operational costs and labor requirements. While marine-grade and moisture-resistant plywood options exist, they are significantly more expensive—often 30% higher than standard variants. Many end users skip protective treatments to save on initial costs, unaware of the long-term performance implications. This leads to negative feedback, complaints, and skepticism about plywood’s reliability. Additionally, suppliers must invest in climate-controlled storage facilities to prevent premature deterioration of stored inventory, especially during long hot months. Without proper education and consistent quality, durability concerns continue to damage plywood’s reputation among architects, contractors, and end-users.

Market Fragmentation and Price-Based Competition

The UAE plywood market remains highly fragmented, with numerous small and mid-sized suppliers competing primarily on price. This intense price-driven competition creates an unstable commercial environment. Many companies undercut each other with minimal profit margins, resulting in a race to the bottom that discourages innovation, quality improvement, or customer service. Buyers, especially in the construction and wholesale trade, often choose based solely on price rather than durability or certification. This undermines reputable suppliers who invest in better raw materials, testing, and service infrastructure. In some cases, low-quality imports have flooded the market, further diluting product standards and increasing customer dissatisfaction. The fragmented nature of the market also leads to inconsistent customer experiences—delivery delays, missing specifications, or product mismatches are not uncommon. Without consolidation or differentiation, companies find it difficult to scale or build loyalty. As long as pricing remains the only battleground, the market will continue to suffer from inefficiencies and quality inconsistencies that limit long-term growth potential.

Key Market Trends

Customization and Decorative Plywood Gaining Popularity

Design trends in the UAE are increasingly pushing demand toward decorative and customizable plywood products. Architects and interior designers are no longer satisfied with basic panels—they’re now seeking plywood that can be pre-laminated, veneered, or digitally printed to achieve specific aesthetic goals. Luxury apartments, retail stores, and boutique hotels frequently request plywood finishes that resemble exotic woods, stone, or metallic textures. This has created a niche market for suppliers offering cut-to-size services and custom-finish options. Panel customization is also favored in modular furniture manufacturing, where pre-finished components improve production speed and reduce labor costs. Decorative plywood is particularly in demand for false ceilings, wall claddings, cabinetry, and high-impact feature walls. As interior fit-out companies try to meet tighter project timelines and style specifications, ready-to-install panels with factory finishes are gaining preference. Even in the retail segment, end users appreciate the variety of shades, grains, and surface textures available. Suppliers offering flexible customization options—such as fire-rated decorative veneers or moisture-resistant colored laminates—are gaining a competitive edge. This trend is reshaping how plywood is positioned—not just as a structural base but as a visible design element in modern interiors.

Digital Integration in Manufacturing and Supply Chain

The plywood sector in the UAE is embracing digitalization across production and distribution. On the manufacturing side, CNC cutting machines and digital panel saws are improving precision, waste reduction, and throughput. Digitally controlled laminating lines and automated grading systems are enhancing consistency, particularly in premium plywood production. Meanwhile, supply chain technology is being adopted to better manage stock levels, optimize deliveries, and offer real-time inventory visibility to clients. Many distributors are integrating ERP systems that sync procurement, logistics, and sales, allowing them to track shipments, monitor customer orders, and forecast demand. E-commerce is also beginning to play a role, with plywood traders offering online catalogs, quotation portals, and doorstep delivery services. This has made plywood procurement easier for contractors, furniture makers, and even individual end users. Digital invoicing, barcode-based inventory, and order status tracking are becoming common, improving customer experience and operational efficiency. Additionally, suppliers who digitize their technical catalogs and installation guides are making it easier for architects and engineers to specify their products in design documents. The integration of digital tools is not just improving business processes but also elevating the professional image of plywood vendors in a market where responsiveness and precision are highly valued.

Growth of Modular Construction and Pre-Fabrication Techniques

The rising adoption of modular and pre-fabricated construction methods is significantly influencing plywood demand in the UAE. Contractors and developers are now leaning toward off-site construction models to save time, reduce waste, and ensure quality. Plywood plays a vital role in this process, being used extensively in wall partitions, floor platforms, roofing bases, and structural panel systems. Manufacturers are increasingly supplying factory-cut plywood panels that match modular frame dimensions, reducing on-site modifications and improving assembly efficiency. The demand for consistent quality, flatness, and structural strength is particularly high in this segment, favoring high-grade plywood over less reliable substitutes. Pre-fab housing projects, worker accommodation facilities, and even retail pop-up structures are contributing to this shift. Construction timelines for modular buildings are often compressed by 30–40%, and plywood helps enable that speed. Moreover, in modular interiors—such as fitted kitchens and wardrobe units—plywood provides both the structural integrity and design flexibility required. As prefabrication grows in residential, hospitality, and commercial segments, plywood is increasingly being chosen for its versatility, machinability, and ease of transport. This trend is expected to deepen further as developers focus on speed, scalability, and sustainable construction practices across the UAE.

Segmental Insights

Wood Type Insights

Softwood plywood segment dominates in the UAE Plywood market in 2024 primarily due to its versatile applications, affordability, and alignment with the region’s construction and interior design needs. Softwood plywood, typically made from pine, spruce, or fir, is lightweight and easier to work with compared to hardwood alternatives. These characteristics make it particularly attractive for large-scale projects where speed and cost-efficiency are priorities.

The UAE’s ongoing urban development—comprising residential housing, retail spaces, and temporary structures—has significantly boosted the consumption of softwood plywood. Contractors often prefer this segment for subflooring, wall sheathing, packaging, partitions, and false ceilings. Its dimensional stability and good strength-to-weight ratio allow for quick installation, reducing labor costs. In fact, over 60% of plywood used in residential fit-outs in 2024 was reported to be softwood-based.

Cost is another major driver. Softwood plywood typically costs 20–30% less than hardwood variants, making it a practical choice for budget-sensitive public and private construction. Moreover, with the increased availability of pre-laminated and decorative softwood sheets, the material is also being used in furniture backing and built-in wardrobes. Distributors reported that softwood plywood made up nearly 65% of bulk orders for medium-rise buildings and temporary commercial outlets.

Importers in the UAE also benefit from a steady supply of softwood plywood from Europe and China, aided by the country’s well-connected ports and favorable customs processes. Additionally, softwood plywood’s compatibility with eco-friendly treatments and FSC certification has helped it meet evolving sustainability preferences in the market. Given its flexibility, affordability, and wide range of use cases, softwood plywood maintained its leading share in 2024 and is likely to remain a key volume driver in the near term.

Grade Insights

Moisture Resistant segment dominated the UAE Plywood market in 2024 due to the country’s humid coastal climate and the material's suitability for interior applications in kitchens, bathrooms, and utility areas. MR plywood offers enhanced durability against ambient moisture and is widely used in both residential and commercial spaces. With over 70% of UAE’s population living in coastal cities like Dubai and Sharjah, the demand for MR-grade panels surged. Its affordability compared to marine plywood, combined with availability in various thicknesses and finishes, made it the preferred choice for mass-market furniture, partitions, and cabinet work throughout 2024.

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Region Insights

Largest Region

Abu Dhabi dominates the UAE Plywood market in 2024 driven by large-scale infrastructure projects, government-funded real estate development, and industrial expansion. The capital city’s focus on diversifying the economy through tourism, logistics, and manufacturing has led to a sustained boom in construction activity, directly boosting plywood demand.

Abu Dhabi’s government has continued investing heavily in mega-projects such as the Zayed City development, Saadiyat Cultural District, and industrial zones like Khalifa Industrial Zone Abu Dhabi (KIZAD). These projects require extensive use of plywood in applications ranging from scaffolding and formwork to interior partitioning and furniture fit-outs. In fact, over 40% of plywood procured for public projects in the UAE in 2024 was consumed within Abu Dhabi alone.

Another key driver is the increasing use of plywood in infrastructure-linked housing and public facilities—schools, healthcare centers, and transport terminals. Softwood and moisture-resistant plywood grades are in especially high demand due to their compatibility with Abu Dhabi’s warm and semi-humid desert climate. Additionally, the rise of prefabricated and modular construction within government-backed affordable housing schemes has further propelled plywood usage.

Abu Dhabi also benefits from efficient logistics and warehousing systems, with key entry ports like Khalifa Port supporting high volumes of plywood imports. Distributors have established strong local supply chains within the emirate, ensuring rapid delivery to job sites and reducing construction downtime. Moreover, several major plywood importers and trading companies maintain operational headquarters in Abu Dhabi, reinforcing its dominance.

With its vast land area, robust construction pipeline, and policy-backed urban expansion, Abu Dhabi continues to lead the UAE plywood market both in volume and value, outpacing other Emirates in 2024.

Emerging Region

Dubai is the emerging region in the UAE Plywood market in the coming period driven by upcoming hospitality projects, interior fit-outs, and high-end residential developments. With a strong rebound in tourism and preparations for global events and exhibitions, demand for decorative and fire-rated plywood is rising across hotels, retail outlets, and luxury villas. Dubai’s interior design industry is increasingly favoring pre-laminated and custom-cut plywood for premium applications. Additionally, the city's vibrant real estate market and rise in renovation projects among homeowners are fueling demand for MR and softwood plywood variants. These factors position Dubai for accelerated plywood market growth in the coming years.

Recent Developments

• In May 2024, at Volvo Days 2024, Volvo Construction Equipment (Volvo CE) introduced a series of exciting new product launches and unveiled a fresh, solutions-oriented approach designed to drive sustainable change. This new approach aims to provide innovative solutions that cater to the evolving needs of customers, with a focus on both highly regulated and less regulated markets. By emphasizing sustainability and efficiency, Volvo CE is committed to helping customers reduce their environmental impact while improving operational performance.
• In March 2025, Energy Capital Partners (ECP), a New Jersey-based private equity firm, has entered a strategic joint venture with Abu Dhabi’s sovereign wealth fund ADQ to address growing U.S. power demand from data and industrial centers. With an investment potential of up to $25 billion, the venture will focus on building power generation and energy infrastructure—targeting surging electricity requirements driven by artificial intelligence and hyperscale data centers across the United States.
• In May 2025, A.R.M. Holding, a prominent UAE-based investment firm, has formalized a strategic partnership with world-renowned architecture firm BIG-Bjarke Ingels Group. The agreement, signed in the presence of A.R.M. Holding CEO H.E. Mohammad Saeed Al Shehhi and BIG Founder Bjarke Ingels, will combine capital investment and design expertise to deliver visionary architectural projects in the UAE, reinforcing A.R.M. Holding’s position as a catalyst for innovative and sustainable urban development in the region.
• In February 2025, At the World Governments Summit 2025, the UAE announced a strategic collaboration with Elon Musk to launch the Dubai Loop project, a futuristic underground transportation system. Designed to serve the city’s densely populated areas, the initiative aims to revolutionize mobility through seamless, AI-powered subterranean transit. The project underscores the UAE’s ambition to lead in smart infrastructure, digital economy, and sustainable urban transport aligned with its broader technological innovation goals.
• In January 2025, SEE Holding, developer of The Sustainable City, has entered a strategic agreement with Arabian Gulf Steel Industries (AGSI) to integrate low-carbon steel across upcoming developments. This initiative supports SEE Holding’s sustainability roadmap by reducing embodied emissions and sourcing environmentally responsible materials. The partnership reinforces both entities’ commitment to decarbonization, aligning with the UAE’s broader net-zero targets and the global shift towards low-impact, climate-conscious construction practices.
• In February 2025, Azizi Developments has partnered with global elevator and escalator leader KONE to deploy advanced vertical transportation systems across several flagship projects in Dubai, including Azizi Venice, Riviera Phase IV, Azizi Rêve, and Creek Views III. The collaboration will enhance mobility, safety, and energy efficiency across mixed-use communities, aligning with Azizi’s commitment to smart and sustainable urban living. KONE’s technology will support high-rise functionality and enrich user experience across the developer’s growing real estate portfolio.

Key Market Players

• Madar UAE         
• MIH Home
• Adex International LLC
• Al Nahr Al Seeni Building Material Trading LLC
• Dani Trading LLC
• Navi Safe Engineering Services
• Suma Building Materials Stores LLC
• Alliance International Trading LLC
• Imanco Sanitary Ware Trading Co.
• Danube Building Materials     

Report Scope:

In this report, the UAE Plywood Market has been segmented into the following categories, in addition to the Application trends which have also been detailed below:

• UAE Plywood Market, By Wood Type:

o   Softwood plywood

o   Hardwood plywood

• UAE Plywood Market, By Grade:

o   Moisture Resistant

o   Boiling-Water Resistant

o   Fire Resistant Grade

o   Others

• UAE Plywood Market, By Application:

o   Residential

o   Commercial

o   Others

• UAE Plywood Market, By Region:

o   Abu Dhabi

o   Dubai

o   Sharjah

o   Ajman

o   Umm Al Quwain

o   Ras Al Khaimah

o   Fujairah

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the UAE Plywood Market.

Available Customizations:

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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