Market Trends of GCC Concrete Blocks Industry
Rise in Commercial Segment Expected to Propel the Market
- The commercial construction sector is the largest consumer of concrete blocks in the GCC region owing to its various advantages, such as high compressive strength and durability.
- In recent times, the GCC region has seen a wide range of commercial projects, which has led to an increase in demand for concrete blocks.
- Saudi Arabia has invested in various commercial projects under its Vision 2030 project. Some of the notable projects include the Diriyah project. Under this project, the government is planning to invest USD 63 billion to build more than 20 hotels and museums in the Diriyah Gate Giga project.
- In Qatar, various commercial construction projects are set to boost the demand for concrete blocks. More than 350,000 square meters of office space is set to be constructed in 2024.
- The other commercial projects in Qatar include the development of Hamad Medical Corporation, Madinat Khalifa Health Centre, Qatar Academy Sidra, and the development of the Ministry of Municipality’s Veterinary Laboratories. These projects were initialed by Qatar`s Public Works Authority (Ashghal) in 2023.
- Such investments are expected to drive the demand for concrete blocks in the GCC region.
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Saudi Arabia Dominates the GCC Concrete Blocks Market
- The construction sector is one of the major sectors that utilize concrete blocks in Saudi Arabia.
- Various projects, such as Giga projects, transport and mobility schemes (including the Riyadh Metro), social infrastructure developments (like the Ministry of Housing's Sakani program), and mega energy projects (such as the state-owned Aramco Berri and Marjan oil fields) are expected to drive the demand for concrete blocks in the country.
- In recent years, the country has experienced a surge in housing projects that has propelled the demand for the market.
- The Ministry of Municipal and Rural Affairs and Housing forecasts a housing surge, targeting 300,000 residential units by 2025. In a significant announcement, the government unveiled housing projects exceeding SAR 65 billion (~USD 17.3 billion) in September 2023.
- In 2023, the National Housing Company launched three major projects in Al Forsan and Khuzam suburbs, with a combined value surpassing SAR 42 billion (~USD 11.19 billion). The expansive Al Forsan project, covering 10 million square meters, is set to provide 27,750 diverse housing units.
- Aligned with Vision 2030, the Saudi government is embarking on ambitious construction and infrastructure projects. Highlighting this is NEOM's collaboration with Italy’s We Build and local partner Shibh Al Jazira Contracting, working on the innovative floating city OXAGON, part of a broader smart city initiative near Riyadh, with a projected capacity of 9 million residents.
- All the above-mentioned factors are expected to play a vital role in driving the demand for concrete blocks in Saudi Arabia in the near future.
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