Market Trends of United Arab Emirates Protective Coatings Industry
This section covers the major market trends shaping the UAE Protective Coatings Market according to our research experts:
Increasing demand from United Arab Emirates Oil and Gas industry
- Protective coatings offer excellent corrosion resistance, water resistance, and fire resistance. In the oil and gas industry, protective coatings used for chemical resistance and safety protocols play vital roles in avoiding risks related to damage, accidents, and workers' health.
- The United Arab Emirates (UAE) is among the world's ten largest oil producers. About 96% of the country's roughly 100 billion barrels of proven oil reserves are located in Abu Dhabi, ranking it sixth worldwide. The UAE produces an average of 3.2 million barrels of petroleum and liquids daily.
- In November 2020, the Supreme Petroleum Council (SPC) of the United Arab Emirates announced that 22 billion barrels of unconventional oil had been found in Abu Dhabi. This was in addition to the 2 billion barrels of conventional oil that had already been found there.This is likely to make it easier for new oil and gas upstream projects in the country to get started.
- Through its subsidiary JODCO Exploration Limited (JEL), INPEX Corporation announced in December 2021 that it had found a number of conventional oil, condensate, and gas columns at Onshore Block 4 in Abu Dhabi in the United Arab Emirates (UAE).
- In March 2022, ADNOC awarded framework agreements worth USD 658 million to further expand drilling operations and crude oil production capacity. In May of 2022, ADNOC announced three oil discoveries, including one at Bu Hasa, Abu Dhabi's biggest onshore field, with a crude oil production capacity of 650,000 barrels per day (bpd).
- All the aforementioned factors are expected to drive the country's protective coatings market.
Understand The Key Trends Shaping This Market
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The infrastructure segment dominates the market
- The backbone of modern cities is the protective coatings that are put on steel, which is often used for public buildings, stadiums, and transportation hubs.Steel bridges need to be protected from corrosion so that they can keep working well and looking nice over time. Protective coatings are the most common way to do this.
- At a cost of USD 2.7 billion, the UAE Ministry of Infrastructure Development launched 36 projects. These projects included federal road and maintenance projects as well as improvements in security, education, health, and services.
- The projects, which include the construction and maintenance of federal roads, will be carried out under a budget of USD 920.3 million. The implementation and maintenance of the government buildings will be done at a cost of USD 1.8 billion, while the budget allocated for four road implementation projects is USD 212.3 million.
- In 2021, the Roads and Transport Authority (RTA) started a 13-kilometer-long road network along Sheikh Rashid, Al Mina, Al Khaleej, and Cairo Streets. The project has been broken up into five different stages, and it will be finished in 2027 after an investment of $1.37 billion.
Taking all of these things into account, it seems likely that the demand for protective coatings will rise during the forecast period.
