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Increased investment and Competition Driving Growth in the GCC Wire & Cable Industry
LONDON, June 20, 2013 /PRNewswire/ --
For GCC wire and cable makers there is reason for optimism, as the region's
construction industry experiences a period of resurgence thanks to increased
infrastructure spending. It is a sharp contrast to the deep recession the region faced in
2009. The value of infrastructure and real estate projects planned for the GCC up to 2018
is estimated at a surprising US$1 trillion. This in turn will drive demand for wire and
cable. According to Integer Research's Wire & Cable Focus Report: Middle East and North
Africa Markets, the GCC cable industry is well-equipped to supply this solid demand, but
the local cable makers must evolve to take full benefit.
In recent years, the GCC has experienced double-digit growth in insulated wire and
cable capacity, including the entry of new players into the market, such as Bahra Cables,
Al Fanar, RESCAB, QICC, El Sewedy (in Saudi Arabia and Qatar), and Power Plus. This new
wave of cable makers is challenging the dominance of established local cable producers,
such as Saudi Cable, Riyadh Cables, Jeddah Cables, and Ducab. According to Andrea
Valentini, Senior Analyst at Integer, "several new producers are capitalizing on their
close business links with end-users. Bahra Cable has strong links downstream to key
end-users Saudi Bin Ladin Group and Electric House, and Al Fanar has a long established
distribution network in Saudi Arabia and a sister company engaged in EPC contracting".
Most of the GCC cable makers are rising to the challenge of intensified domestic
competition by implementing a range of strategies. Many are increasingly looking to new
countries or products to diversify their market risk, such as Ducab's expansion into high
voltage power cables. Others are integrating vertically into raw materials, for example,
MESC, Jeddah Cables, and Bahra Cable have all made recent investments in polymer
compounding capacity, whilst others are integrating into end-user services, such as
turnkey project management offered by Riyadh Cables and Saudi Cable.
"Our analysis indicates that GCC cable companies are evolving to maximise the benefits
of a resurgent construction market, and are developing the necessary sophistication to
face an increasingly competitive market. Saudi Arabia in particular will have the highest
wire and cable consumption growth rate, with 5.4% compound average growth forecast
annually between 2012 and 2017," added Valentini.
About Integer Research
Integer Research is a specialist provider of research, data, analysis and consultancy
services across a range of global industrial markets, including wire and cable,
fertilizers and emissions.
Contact
For more information on Integer's Wire & Cable Focus Report: Middle East and North
Africa Markets and its findings please contact Ali Asaadi on +44-20-7503-1265 or
ali.asaadi@integer-research.com
Integer Research Ltd
Increased investment and Competition Driving Growth in the GCC Wire & Cable Industry
LONDON, June 20, 2013 /PRNewswire/ --
For GCC wire and cable makers there is reason for optimism, as the region's
construction industry experiences a period of resurgence thanks to increased
infrastructure spending. It is a sharp contrast to the deep recession the region faced in
2009. The value of infrastructure and real estate projects planned for the GCC up to 2018
is estimated at a surprising US$1 trillion. This in turn will drive demand for wire and
cable. According to Integer Research's Wire & Cable Focus Report: Middle East and North
Africa Markets, the GCC cable industry is well-equipped to supply this solid demand, but
the local cable makers must evolve to take full benefit.
In recent years, the GCC has experienced double-digit growth in insulated wire and
cable capacity, including the entry of new players into the market, such as Bahra Cables,
Al Fanar, RESCAB, QICC, El Sewedy (in Saudi Arabia and Qatar), and Power Plus. This new
wave of cable makers is challenging the dominance of established local cable producers,
such as Saudi Cable, Riyadh Cables, Jeddah Cables, and Ducab. According to Andrea
Valentini, Senior Analyst at Integer, "several new producers are capitalizing on their
close business links with end-users. Bahra Cable has strong links downstream to key
end-users Saudi Bin Ladin Group and Electric House, and Al Fanar has a long established
distribution network in Saudi Arabia and a sister company engaged in EPC contracting".
Most of the GCC cable makers are rising to the challenge of intensified domestic
competition by implementing a range of strategies. Many are increasingly looking to new
countries or products to diversify their market risk, such as Ducab's expansion into high
voltage power cables. Others are integrating vertically into raw materials, for example,
MESC, Jeddah Cables, and Bahra Cable have all made recent investments in polymer
compounding capacity, whilst others are integrating into end-user services, such as
turnkey project management offered by Riyadh Cables and Saudi Cable.
"Our analysis indicates that GCC cable companies are evolving to maximise the benefits
of a resurgent construction market, and are developing the necessary sophistication to
face an increasingly competitive market. Saudi Arabia in particular will have the highest
wire and cable consumption growth rate, with 5.4% compound average growth forecast
annually between 2012 and 2017," added Valentini.
About Integer Research
Integer Research is a specialist provider of research, data, analysis and consultancy
services across a range of global industrial markets, including wire and cable,
fertilizers and emissions.
Contact
For more information on Integer's Wire & Cable Focus Report: Middle East and North
Africa Markets and its findings please contact Ali Asaadi on +44-20-7503-1265 or
ali.asaadi@integer-research.com
Integer Research Ltd