GCC Construction Chemicals market to grow at 7% through 2021: TechSci Research R

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.

The construction chemicals market in the GCC region is projected to grow at a CAGR of over 7 per cent  during 2016 to 2021, says TechSci Research report. 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 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.