Construction boom in the UAE supports secondary industries
Construction boom in the UAE supports secondary industries
The UAE’s buoyant construction industry has driven the growth of several sectors including paint, ceramics, glass, cement and steel industries.
UAE’s paint industry recorded a growth of 20 per cent in 2005, according to industry sources. At present, the paint market in the UAE is worth more than Dh 150 million as the demand for varied types of paints such as decorative paints, marine coatings, powder coating, protective coating is increasing year on year.
One senior official from the paint industry told Khaleej Times,“The growth of the paint industry in the UAE is attributed to important factors, one is the fast completion of construction of various projects. Second,the influx of international architects in the region and the types of products they specify is encouraging the paint industry to produce superior products for everyone. Moreover, Dubai becoming a lifestyle destination for tourists and residents is having a huge and positive impact on paint consumption.”
Last year, Jotun Paints with more than 30 per cent market share in the UAE commissioned its new plant worth Dh 70 million in Al Quoz Industrial area to cater to the increased demands of the construction sector. Currently, Jotun Paints offer Protective, Marine and Decorative paints and has been in the forefront of developing products specifically for the harsh climate and intends to constantly improve its technology, products and services to meet the challenges of the market.
Berger Paints currently the 10th largest decorative paint company in the world with various retail network in the region also offers thousands of colours to consumers through 11 “Colourworld” shops. Last year, Berger Paints achieved more than 25 per cent growth in revenues and launched a new product,“Vintage Finish” which is targeted for the new construction projects in the UAE and Middle East region last year, according to sources.
Paint manufacturers are highly optimistic about huge growth of the paint market for the next five years as mega projects are launched every month as there has been substantial local and international investment flow in the UAE.
The demand for ceramic tiles in the UAE is increasing year-on-year with a consumption of 40 million m2/annum in the country as new projects are announced every month, according to a leading dealer of ceramic tiles.
This tremendous growth of ceramic tiles is also attributed to the excellent advanced technological developments that have taken place in the flooring section and the tile manufacturing process which have resulted in a lot of variety in the tile market.
Owing to this huge demand, RAK Ceramic’s launched its latest facility in the UAE with an invesment of Dh755 million ($200 million) to boost its combined annual capacity to 100 million m2 of ceramic tiles. It now accounts for 5 per cent of the total world production of ceramic tiles. It has also formed a new company, in which it will take a 50 per cent stake, to produce 15 million pieces of ceramic tableware per year, according to a report.
The capacity of the main Ras Al-Khaimah plant has been raised from 120,000 to 200,000 m2 of ceramic tiles per day.
The commercial and residential construction requires different floors which in turn requires different tiles. The varied range of ceramic tiles available in the UAE are stain-resistant glazed porcelain tiles, ideal for the kitchen and balcony, porcelain glazed tiles for bedroom and living room and polished tiles for the main entrance and lobby.
The demand for steel, especially stainless steel is increasing year-on-year every month due to the construction boom which has encouraged many traders to set-up more shops and outlets in the UAE. Although there are three factories in Jebel Ali, two in Sharjah and one in Abu Dhabi, Al Nasser Industrial Enterprises(ANIE’s) is setting up two more steel plants in Musaffah, Abu Dhabi. These two plants will have the manufacturing facility of 600,000 TPA by early 2007 and help to fulfill the demand of steel in the UAE.
According to the International Iron and Steel Institute, it is estimated that the demand of steel will grow between 1,040 and 1,053 million tonnes this year as Middle East is fast becoming a major consumer and producer of steel products.
Steel is in huge demand, although the price is increasing in the region at a rate of 7 per cent per annum as it is more cost effective and can sustain high temperatures in summer and perfect for the UAE which is prone to severe heat and humidity. Moreover, construction of infrastructure requires strong, durable and versatile steel in all kinds of quality, be it structural steel, fabricated steel, stainless steel to name a few.
Actually, Stainless steel is preferred more in the present scenario as it can withstand corrosion, rust in the harsh climate of the UAE. Stainless Steel is very economical as it can withstand the weather changes for more than 100 years without any maintenance.
Glass is also one of the secondary industries which has gained momentum due to the rapid construction activities in the country. At present, all kinds of glass available are versatile and appealing among other building materials used in the UAE.
According to an architect working for a reputed construction company, “Glass protects the buildings during change of weather, provides more light and view as well as saves the electricity bill as glass reduces the heat in the building and minimises the use of airconditioners.”
He also added: “Glass is more cost-effective compared to cement and concrete and completely recyclable.”
In the UAE, glass is more popular as it is also environment friendly, has aesthetic appeal and magnifies the architectural design. It also makes the buildings more attractive with its various colours.
Seeing the demand of glass, Al Attar Group is setting up a glass factory in the Dubai Industrial City which will produce high quality glass for the UAE market. Along with this, two UAE-based financial houses and a group of regional investors are setting up the UAE’s first float glass plant which will produce float glass for the construction, architectural, mirror, automotive and solar energy industries. At present, Emirates Glass, a Dubai Investment subsidiary executed contracts for the supply of more than 67,000 m2of its products to 10 regional projects which proves the demand of glass in the construction sector. The company will supply 140,000 m2 of its premium glass to the Palm Jumeirah development.
According to a report, A new cement factory with a planned annual production capacity of 1 million tonnes began construction in Ras Al-Khaimah in 2005. Given the pace of development in the country and the demand for building materials,the market for cement is expected to rise by 10 to 15 per cent annually to a total of around 25 million tonnes per annum within the next five years. Pioneer Cement Industry is developing the new factory in the Al Ghail area.
Meanwhile, the Ras Al-Khaimah Investment Authority is promoting establishment of a bricks factory at a cost of $100 million (Dh568 million). The project forms part of the emirate’s ten-year development programme.
