REPORT: Tiles and Ceramics Market Middle East

Nicole Dsouza |
May 19 , 2015
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With the value of GCC construction projects completed this year climbing 6.5 per cent to $72 billion, stone sector is set to experience unprecedented growth. An exclusive report prepared for Middle East Stone 2015 described the region as ‘the most dynamic in the world’.

Stone is the fastest growing in the building materials’ industry and imports to the region amount to 40 per cent of its demand. The report by Frost & Sullivan looks at market trends, challenges and the future outlook for the region. It describes five key characteristics of the stone market in the Middle East:

  1. High gross profits and earnings before interest and tax margins
  2. GCC governments’ withdrawal of formerly subsidised fuel and power for industrial activities
  3. Increased demand as a result of intense construction activity
  4. Influx of low cost imports from China
  5. Expats and a young demographic has influenced product development, marketing and sales strategies.

GCC tile market was estimated to be about 500 million sqm in 2014 and is expected to grow by 10-12% each year until 2020.

In addition to the growing construction sector, the report attributes market growth to a large number of High Net worth Individuals (HNI) whose preference for high quality tiles is driving the sector today.

The report also says that the stone market faces challenges such as:

  1. High competition and influx of sub-standard products
  2. Volatility in prices
  3. Availability of substitutes
  4. Changing customer preferences
  5. Irregularities in laws and regulations
  6. Paradigm shift in sales and distribution models

The Middle East Stone Show, which runs from May 19-21, features over 230 exhibitors from 22 countries. 

Download a copy of the new report FREE by filling the form on the right hand panel.