Market Trends of GCC Concrete Blocks Industry
This section covers the major market trends shaping the GCC Concrete Blocks Market according to our research experts:
The Rise in Commercial Segment
- The rise in the commercial segment due to the large-scale consumption of concrete blocks for remodeling and construction activities shall drive market growth.
- In the construction industry, concrete blocks are mainly used to build walls, foundations, and floors to support the building and other structural surfaces outside and inside the house.
- Structural designers and architects design buildings with concrete blocks because of their high structural capacity, resistance to water and fire, and insulating properties.
- The renovation and refurbishing of old buildings have increased investment in the construction industry, which, in turn, has augmented the demand for concrete blocks.
- UAE, Kuwait, and Qatar are registering strong growth in various remodeling and construction activities.
- Also, government spending will play a vital role in boosting the growth of the construction industry. According to Qatar's 2021 budget, new projects worth QAR 54 billion (USD 14.81 billion) were proposed, which will help diversify the economy and develop infrastructure.
- These attributes are expected to witness significant growth in the GCC region over the forecast period.
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Saudi Arabia Dominates the GCC Concrete Blocks Market
- Construction is a leading economic sector in the GCC region, whereas Saudi Arabia is the leading investor in the construction business, with over USD 82 billion.
- Saudi Arabia dominated the market attributed of construction projects in the country. Giga projects, transport, and mobility schemes such as the Riyadh Metro, social infrastructure developments such as the Ministry of Housing's Sakani program, and energy mega-projects, such as the state-owned Aramco Berri and Marjan oil fields, shall drive the market growth.
- The Saudi Arabian construction market is anticipated to witness significant growth and offer opportunities due to its Vision 2030, NTP 2020, and several ongoing reforms to diversify away from oil. These factors shall drive the Saudi Arabian construction businesses in the next seven years.
- Currently, the country's economy is entering a post-oil era, in which the kingdom's megacities, which are under construction, will provide future growth. According to industry sources, more than 5,200 construction projects worth USD 819 billion are currently underway in Saudi Arabia. These projects represent approximately 35% of the total value of active projects within the GCC.
- An increase in demand for housing boosts residential construction and fuels the demand for concrete blocks as the growing urban population expands and migrates.
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