Research on Gulf Cooperative Countries Market for Construction Chemicals

Research and Markets (http://www.researchandmarkets.com/research/bbce9b/strategic_opportun) has announced the addition of Frost & Sullivan's new report "Strategic Opportunity Assessment of GCC Market for Construction" to their offering.

Value Engineered Solutions Targeting Infrastructure and Low Income Housing Projects Hold the Key for GCC Construction Chemicals Market Growth

The Gulf Cooperative Countries (GCC) market for construction chemicals has seen rapid development between 2003 and 2008, mainly due to the underlying construction boom in the region. Increasingly sophisticated construction engineering, tight time lines, standards and budgets have raised the bar for the development of construction chemicals and elevated suppliers to the role of strategic partners in project engineering and execution. Right use of construction chemicals can reduce the waiting time between construction activities, thus directly increasing the capital efficiency of the project and leading to faster completion of projects which in turn will create the much needed liquidity (assuming the demand).

The demand for construction chemicals is closely related to the size and type of construction projects and hence concrete admixtures, flooring sealants, and bonding agents are expected to witness a demand upswing. The extraordinary size of the projects, the stringent engineering requirements arising due to testing climatic conditions, and execution challenges underpins the seminal role of construction chemicals. "The future of GCC construction chemicals market hinges on two key areas - product & application engineering and value engineering," notes the analyst of this research service. "These factors will expand the market by surmounting existing construction engineering impediments and also by increasing the penetration in existing application segments."

High working capital intensity and timely project completion assume great significance for developers. Value engineering becomes crucial because the penetration for top-class construction chemicals has been relatively less successful in small and medium projects, which is a large segment. The revenue streams have to be balanced by emphasizing high-end construction projects as well. The GCC market witnessed strong growth from 2003 to 2008, triggered by ambitious construction projects, which necessitated custom-designed solutions for projects. For example, BASF's Glenium series hyper plasticizer was created for a high-rise tower project in the UAE. This later became one of the most successful products in its segment.

Government Funding Keeps Market Outlook Stable

The global financial crisis has affected the regional construction industry and in turn slackened the pace of growth in the construction chemicals industry, The fall in demand and huge correction in the real estate prices (and rents) in Dubai by the end of 2008 provided enough evidence that the United Arab Emirates (UAE) is clearly affected by the global credit crisis. Specific events like the Dubai Debt crisis, which is essentially a liquidity problem, further highlights the fundamental problems with high-end real estate projects in the face of diminishing demand and project finance. However, with a large pool of petroleum dollars and strong Government support, funding for infrastructure projects and housing projects in low and middle income groups is expected to remain stable and drive the construction industry in the near future. "Increasing price sensitivity and fragmentation of the market structure has hurt profitability, thwarting market growth," says the analyst. "For the construction chemicals market, creating a collaborative product/application environment with consultants and ready-mix concrete companies, etc to engage the leading project customers is as important as increasing penetration in the small and medium projects segment." During the short term, focus on value engineering and managing cash flows will help market participants navigate the tough economic scenario, but the long-term prospects for the market look upbeat.

In terms of product preferences, construction sectors, and construction engineering, the chemicals market is at different maturity levels. Participants in this space must identify and target specific opportunities to suit their strengths and strategies. Two important strategic options for participants to pursue are creating depth in technology and application engineering to develop new opportunities and retrieving as well as targeting small and medium projects to gain share from a fragmented market with diffused technology products. "Construction chemicals companies must continuously innovate to address evolving project requirements and increasingly stringent working conditions, elaborates the analyst."Devising new products and applications, which accelerate project completion is of utmost importance. Targeting small and medium projects for diffused technology products will ease dependence on high-end projects.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Concrete admixtures
• Waterproofing compounds
• Flooring compounds
• Concrete repair systems
• Miscellaneous construction chemicals

By Geographic Region:

• Kingdom of Saudi Arabia
• United Arab Emirates
• Rest of GCC
• Bahrain
• Kuwait
• Oman
• Qatar

This Frost & Sullivan research service titled Strategic Opportunity Assessment of GCC Market for Construction Chemicals provides market dynamics, trends and viable growth strategies. In this research, Frost & Sullivan's expert analysts thoroughly examine the markets for concrete admixtures, waterproofing systems, flooring compounds, concrete repair products, sealants, and grouts in the Middle East.

Key Topics Covered:

• Executive Summary
• Total GCC Construction Chemicals Market
• Saudi Arabia Construction Chemicals Market
• UAE Chemicals Market
• Rest of GCC Construction Chemicals Market

Source: http://www.researchandmarkets.com/