Al Muqarram projects 50% revenue spike for building materials by 2025
“Despite the negative effects of the COVID-19 pandemic, the construction chemicals market remained resilient
The Middle East construction chemicals sector is expected to grow at a compound annual growth rate of approximately 5.5% by 2024, shrugging off COVID-19 after-effects that threaten to cripple most industries, according to the Sharjah-headquartered Al Muqarram Group.
According to industry insiders, growth will largely be driven by the extensive demand brought about by increased infrastructure in the building, construction, and healthcare industries.
According to the Muqarram Group, the strategic growth of the construction chemicals market in the larger GCC region will be led by the UAE and Saudi Arabia, with the two leading markets expected to remain bright spots for the construction industry until 2024.
The growth also comes against a backdrop of ongoing projects such as the Expo 2020, among others, which are expected to drive demand for the respective products.
The managing director of Al Muqarram Group, Safdar Badami, said: “Despite the negative effects of the COVID-19 pandemic, the construction chemicals market remained resilient and is expected to continue performing well at least for the next five years.
“Although it’s a predominantly fragmented market, the Middle East is also keen on maintaining high-quality standards. This is part of the reason why brand reputation, quality, costing and loyalty play a crucial role for Al Muqarram Group and its Brands Dolphin and Hi-stick as it seeks to grow its market and brand share.”
The construction chemicals industry has also grown in value – an indication that demand has steadily risen on the back of emerging construction trends as well as evolving regulatory standards and guidelines.
By November 2017, the combined value of the 11,755 active construction projects in the UAE alone had exceeded $18.2bn, accounting for more than 30% of the total value and 52% of all construction activity in the GCC region as a whole.
The total value of UAE’s contract awards stood at $31.6bn in September 2018, compared to $28.6bn in 2017. According to the latest data, the total value of major Expo-related construction projects reached $42.5bn by the end of March 31, 2018, driven by both the public and private sectors.
On its part, Saudi Arabia is poised to become the largest market for construction chemicals in the region, where the total consumption is majorly driven by the end-user industries, such as construction, healthcare, pharmaceutical and packaging.
By 2024, Al Muqarram Group plans to have sealed its leadership position in the construction chemicals sector globally through its flagship product - Dolphin. The group also plans to form strategic retail partnerships in the region in a bid to build its auto care segment.
The group’s primary focus, for now, is the Middle East market where the organisation expects a growth of 50% in the total revenue of the business towards construction chemicals by 2025.
With the UAE manufacturing sector expected to grow its margins by $130m in 2020, representing a 5% growth, the group is also planning to expand its production capacity to 15% by 2022.
To achieve this goal, Al Muqarram Group is in the process of setting up a new manufacturing plant in Umm Al Quwain, boost its Sharjah plant with state-of-the-art machinery, as well as improve and go high-scale in the production for spray paints.
This is part of its ‘Go Global’ strategy, which the group says, will significantly boost its territorial sales through an expanded product line and diversification of its product portfolio including sealants, butane gas, pest control products, among others.