Market Trends of GCC Flat Glass Industry
Construction Industry to Drive the Demand for Flat Glass
- Flat glass is used significantly in the construction industry owing to its wide range of functions, from heat insulation to soundproofing and from safety applications to solar protection. It is extensively used in windows, facades, doors, interior partitions, balustrades, shop fronts, and railings for stairs, balconies, and other building parts. These multiple uses will boost the flat glass market during the forecast period.
- In building and construction applications, flat glass is majorly used in windows for both functional and aesthetic purposes, which allows clear sight for customers looking out of the window and, at the same time, protects them from harmful UV radiation.
- The construction industry has grown steadily in the GCC region as a result of increased construction activity in Saudi Arabia, the United Arab Emirates, and Qatar. According to the General Authority for Statistics (Saudi Arabia), the revenue for building construction is expected to reach USD 34.05 billion by 2024 compared to USD 33.97 billion in 2022.
- According to the Ministry of Energy and Infrastructure, the United Arab Emirates is investing AED 11.8 billion (~USD 3.2 billion) in nearly 130 state-funded development projects as a part of the ministry's five-year plan from 2018-2023. The ministry is implementing 17 projects to be used as healthcare facilities, 12 infrastructure developments for educational facilities, and 15 government buildings accessible to the public.
- The growing construction activities in Qatar are driving the market for flat glass. Lusail City, a key component of Qatar's 2030 Vision, the Lusail project will see the construction of a completely new city worth around USD 45 billion, with 19 multi-purpose residential, entertainment, and commercial districts. Lusail City, a futuristic sustainable city, the flagship project of Qatari Diar, will be one of the most significant development projects in Qatar.
- Therefore, such investments in the growth and development of the building and construction sector will drive the flat glass market during the forecast period.
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Saudi Arabia to Dominate the Market Demand
- Saudi Arabia is one of the region's fastest-growing construction and automotive markets. Many ongoing and upcoming construction projects are expected to contribute to the demand for flat glass in the country.
- The Saudi Arabian construction market is expected to witness significant growth and lucrative potential due to massive residential and non-residential investments. Construction is underway on many industrial hubs, schools, hospitals, real estate, clean energy infrastructure, smart cities, and tourism.
- Saudi Arabia is embarking on many residential and commercial projects, which are expected to increase the construction activities in the country. Some of such projects undertaken or in various phases of development include a USD 500 billion futuristic mega-city 'Neom' project - The Neom city project includes a linear metropolis, a global commerce center, tourist resorts, and a floating industrial complex. The project was planned to be completed by 2030, wherein the completion of the first phase is expected by 2025.
- The country is also focusing on establishing itself as the new automotive hub in the Middle East. Although Saudi Arabia is a large importer of vehicles and auto parts, it is now trying to attract original equipment manufacturers (OEMs) to open their production plants in the country to develop its domestic automotive industry.
- Moreover, Saudi Arabia aims to localize its automotive sector and increase investment opportunities to help the industry develop local manufacturing capacity and align with the Kingdom's Vision 2030 goals to meet its national strategic goals. The kingdom is interested in developing the sector as domestic light vehicle sales are expected to increase by 2.2% over the next decade by 2030.
- Similarly, the demand for solar glass is increasing in the country with the implementation of new solar projects. For instance, in January 2023, Al Ghazala Energy Company, a Saudi subsidiary of Jinko Power Technology Co. Ltd, commenced construction of the 300 MW Saad Solar Project in Saudi Arabia. The project is expected to be completed in the fourth quarter of 2024.
- Overall, the growth of industries such as building and construction, automotive, and solar industries is likely to drive the market for flat glass in the country.
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