A typical apartment building in Dubai. Boosted by heavy public and private spending in various infrastructure projects, the glass industry in GCC is enjoying a period of tremendous growth.
Boosted by heavy public and private spending in various infrastructure projects, the glass industry in GCC is enjoying a period of tremendous growth.
Latest market intelligence report by UK-based Bowmedia Group shows that the demand for flat glass will continue to see an upward trend due to construction of several new high-rise buildings in the region. On the other hand, the global demand for flat glass will be led by manufacturing, automotive & transportation and packaging industries.
The report estimates that the international demand for flat glass will climb by 7.1 percent each year through 2016 to reach 9.2 billion square meters. The demand has continued to maintain a positive momentum for the past two decades. The global market value of fabricated flat glass is also expected to touch USD 90 billion in 2016 on the back of a healthy growth trend of energy-efficient products, such as solar control panels, insulation and low-E glass.
According to Derek Burston of Bowmedia Group, “glass demand is an excellent reflection of a country’s per capita growth. As populations increase, the spending on new houses and glass increases correspondingly. Glass companies in the Middle East, and in particular, the GCC, are particularly at an advantage due to the manpower, raw material and strategic location to operate and export to anywhere in the world.”
The GCC governments are dedicating large funds for the development of infrastructure projects across the region to improve the living standards and curb a wave of civil discontent. Currently, more than 1,300 construction projects valued at around USD 418 billion are under development in the UAE. The tiny Gulf state of Qatar, preparing to host the FIFA World Cup 2022, is also aggressively spending billions in infrastructure and construction projects. In addition, another 300 projects worth USD 143 billion are in the pipeline across the GCC.