Market Trends of Middle East Construction Chemicals Industry
This section covers the major market trends shaping the Middle East Construction Chemicals Market according to our research experts:
Strong Infrastructure Growth
The construction chemicals market in the Middle East is a fast-growing industry that is being driven by the growing demand for building infrastructure.
- The Middle East infrastructure market is one of the world's fastest-growing. Over the last decade, the region has seen a surge in infrastructure investment, with an estimated USD 1.5 trillion invested in the sector between 2010 and 2020. Population growth, rapid urbanization, and economic diversification have all contributed to an increase in government infrastructure spending in Middle Eastern countries.
- The UAE Vision 2021 envisions the creation of a modern, diverse, and competitive economy based on knowledge and innovation. The UAE has identified a number of critical infrastructure projects that will be required to support economic growth, including the construction of a modern transportation network that includes roads, railways, ports, and airports.
- UAE Dubai Creek Tower will be completed in 2023, with a height of 928 meters and a budget of USD 1 billion.Other big infrastructure projects include the expansion of Abu Dhabi International Airport and the metro, as well as the building of a new canal that will connect the Persian Gulf to the Arabian Sea.
- The government of Qatar spent about USD 103 billion on big infrastructure projects to get ready for the FIFA World Cup 2022.The official budget for World Cup construction is between USD 8 billion and USD 10 billion, but this is supported by the USD 200 billion that will be spent to finish a new metro system by 2022.
Overall, the Middle East construction chemicals market is expected to expand rapidly in the coming years, owing to the region's favorable economic conditions, strategic location, emphasis on sustainable construction, and growing population. This presents significant opportunities for Middle Eastern companies operating in the construction chemicals market.
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Saudi Arabia to Dominate the Market
- Saudi Arabia's construction industry is predicted to have tremendous development and attractive opportunities due to significant investments being made in both residential and non-residential projects. Many industrial centers, educational institutions, medical facilities, residential buildings, smart cities, and tourist attractions are in the process of being built right now.
- Saudi Arabia's Amid Vision 2030 is a significant development plan supported by megaprojects aimed at the growth of the nation's infrastructure. With an emphasis on environmental commitments, enhancing citizen quality of life, and creating a strong economy, Vision 2030 aspires to bring about change. Investments in several fields, including healthcare, education, and infrastructure, have expanded as a result of the introduction of Vision 2030 and the corresponding National Transformation Plan (NTP).
- Many residential and commercial projects are being launched in Saudi Arabia, which is anticipated to increase the country's construction activity. Some of these projects are the USD 500 billion futuristic mega-city "Neom" project, the Red Sea Project Phase 1 (due for completion in 2022), which includes 14 luxurious and hyper-luxury hotels that may total 3,000 rooms spread across five islands and two inland resorts, Qiddi Entertainment City, Amaala - the luxurious wellness tourism destination, Jean Nouvel's Sharaan resort in Al-Ula, the Ministry of Housing's Sakani homes, and Jeddah Tower.
- Saudi Arabia is developing, and the nation is receiving impressive amounts of investment. The nation declared in March 2022 that it would more than triple the size of its rail network by installing 8,000 kilometers of new track. In July 2021, USD 147 billion was allocated to the transportation and logistics sectors. By 2030, when the targets have been met, these industries will contribute 10% of the nation's GDP, a 4% increase from today.
- According to the Gulf Council Corporation, Saudi Arabia has planned to invest USD 66.49 billion in healthcare facilities, with help from the private sector, whose participation is expected to rise by 65% by 2030.
- With all of these things in mind, the Saudi Arabian construction chemicals market is expected to grow steadily over the next few years.
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