Middle East Paints & Coatings Market - Segmented by End-user Industry, Technology, Resin Type, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The Middle East paints & coatings market is estimated to register a growth rate of 3.14% during the forecast period (2018 - 2023). Saudi Arabia is estimated to lead the market, due to the ongoing growth in the industrial and architectural sectors in the country. Architectural coatings are expected to be the fastest-growing type, by end-user industry.
Booming Commercial Construction Activities
The Middle East construction market is growing gradually despite the economic gloom. Leaving aside the downturn of the real estate sector in Dubai, the overwhelming impetus behind infrastructure and large-scale residential projects across the Middle East indicates that activity is far from over. Furthermore, with crude prices nearing the OPEC target of USD 70 a barrel, the GCC nations are expected to increase their spending on the construction sector. Saudi Arabia and Qatar are leading the regional boom and the construction sector in both these countries has grown at an average rate of over 10% in the past five years. Public sector spending in both the countries is driven by government initiated plans to develop infrastructure and expansion of cities. Middle East Economic Digest (MEED) estimates that around USD 200 billion will be spent on megaprojects in Qatar, in the run up to the 2022 FIFA World Cup. Additionally, a contract of USD 8 billion has been approved, which involves the completion of the first two metro stations by 2019. State-owned Qatari Diar is leading the development of the USD 45 billion Lusail City, which is the largest project situated in the coastal suburb to the north of the capital, Doha. The project is expected to accommodate 200,000 people. Oman Tourism Development Company (OMRAN) has launched identity details for the first phase of its Mina Al Sultan Qaboos Waterfront Project. Phase 1 of the development, which will involve investment of USD 390 million and scheduled to complete by 2020. These factors are expected to increase the construction output, which, in turn, is likely to increase the usage of paints and coatings.
Architectural Coatings - The Fastest Growing Type by End-user Industry
Paints and coatings are extensively used in the architectural sector for both exterior and interior applications. Architectural coatings are applied on exterior of the house to not only give a new look but also to protect it from blistering summers, freezing winters, soaking rain, and the daily bombardment of UV radiation without fading, peeling away, and cracking. Saudi Arabia’s primary growth in construction has been largely powered by the massive investments done by the government and increased inflow of FDI. Some of the major construction projects are: Junail II, Makkah Grand Mosque Redevelopment, Jeddah and Riyadh Metro, King Abdullah Port Expansion, The Kingdom Tower (Jeddah), King Abdullah Economics City of Rabigh, etc. Transport projects, coupled with the rapid expansion of tourism, education, and real estate builds in Qatar, are expected to see the construction sector continue to dominate economic diversification efforts in the fulfilment of Qatar National Vision 2030. The Kuwait’s construction and infrastructure industry is rapidly growing with increase in government spending. Some of the projects are Sabah Al Ahmad City- 1302 housing units, ports, and roads, among others. This growth in construction and infrastructure sectors is expected to lead to a significant rise in demand for architectural coatings in the Middle Eastern region.
Saudi Arabia to Lead the Market in the Middle Eastern Region
Saudi Arabia, an oil-rich country, has an emerging economy that had slowed down in 2017, over 2016, due to low crude oil prices and the country’s regulatory policy. The country has generated large-scale projects worth USD 800 billion to boost its infrastructure in the coming years. The government has expansive plans for the development of social infrastructure, transportation, and energy & utility construction in the country. Saudi Arabia is focusing on establishing itself as the automotive hub in the GCC region. Though the country 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 the domestic auto industry. Furthermore, the country is experiencing a steady growth in new car sales, with the market expecting to reach one million units by 2020, growing at a rate of 6.7% per annum. According to the General Authority for Statistics, the automotive sector is expected to witness a growth rate of around 4%-5% every year over the next decade. All these factors are expected to rapidly drive the market for paints & coatings in Saudi Arabia during the forecast period.
Notable Developments in the Market
June 2017: The Sherwin-Williams Company completed the acquisition of The Valspar Corporation and created a global leader in paints & coatings industry
April 2017: Axalta Coating Systems increased prices for powder coatings in Europe and Middle East & Africa
Major Players: AkzoNobel, National Paints Factory, Jotun A/S, Al Jazeera Paints Co., Hempel A/S, and PPG, among others.
Reasons to Purchase the Report
To understand the impact of end-user applications on the market
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
To understand the dominating technology in the market
Countries expected to witness the fastest growth during the forecast period
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