BURNABY, Canada, February 15, 2016 /PRNewswire/ --
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
About TechSci Research
TechSci Research is a global market research and consulting company with offices in Canada, UK and India. TechSci Research provides market research consulting services in six verticals - Information Technology, Chemicals, Water & Water Recycling, Consumer Goods & Retail, Automotive and Energy & Power. The company uses proprietary innovative business model that focuses on improved productivity that also ensure the creation of high-quality reports. With more than 100 client engagements with fortune 500 clients, TechSci Research enjoys the status of a premium market research services provider in the industry.
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