(MENAFN- GlobeNewsWire - Nasdaq) Dublin, May 08, 2024 (GLOBE NEWSWIRE) -- The "United Arab Emirates Cement Industry Market Size & Forecast by Value and Volume Across 50+ Market Segments by Cement Products, Distribution Channel, Market Share, Import Export, End Markets - Q2 2023 Update" report has been added to ResearchAndMarkets's offering.
Cement industry in United Arab Emirates is expected to grow by 3.2% on an annual basis to reach US$ 1.84 billion in 2023.
The medium to long term growth story in country remains intact. The cement industry in country is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 3.3% during 2023-2027. The cement output in the country is expected to increase from US$ 1.78 billion in 2022 to reach US$ 2.09 billion by 2027.
The growing investment toward the development of infrastructure is driving cement consumption in the United Arab Emirates. Even the hospitality sector has increased its investment in the Emirati nation to increase the supply of hotel rooms, as the country continues to diversify its economy from oil and gas to travel and tourism. This will further drive cement consumption in the Emirates over the next five years.
Cement makers are expected to benefit from the macroeconomic environment, as cement prices are projected to further increase over the next 12 months. In 2023, cement manufacturers are also projected to shift towards the usage of alternative fuels in their operations, as the Emirati nation aims to reduce harmful emissions. Overall, the outlook for the cement industry remains strong over the next three to four years.
Cement manufacturers have reported strong growth in the bottom line owing to price rise in 2022
Construction material costs, including the prices of cement, increased significantly in 2022 due to various macroeconomic factors. The resultant price rise has had a positive impact on the bottom line of cement manufacturers in the Emirati nation.
Apex Investment Company, the cement manufacturer in the UAE, reported more than US$51 million or AED 187.19 million in profits in 2022. During the 12 months, the firm, formerly known as Ras Al Khaimah Cement (RAK Cement), reported a revenue of AED 820.29 million, up from AED 166.74 million. Higher demand for cement, coupled with the surge in prices, has led to the significant growth achieved by the firm in its bottom line. In April 2022, RAK Cement also raised an investment of US$101.1 million from UltraTech Cement Middle East Investments. As part of the investment, UltraTech Cement has acquired a 29.39% stake in RAK Cement.
In 2023, the publisher expects the cement consumption trend to further continue, as the Emirati nation continues to make a significant investment in its infrastructure development. This coupled with the boom in the luxury housing segment and commercial constructions sector will keep driving cement demand higher over the next 12 months.
Four cement manufacturers have committed to partially use alternative fuels in their manufacturing operations
As part of their efforts to reduce carbon emissions and move toward their goal of achieving net zero goals, the Ministry of Climate Change and Environment and Emirates RDF entered into an agreement with four cement manufacturers in the Emirati nation.
Fujairah Cement Industries, JSW Cement, Lafarge Emirates, and Star Cement signed memoranda of understanding (MoUs) with the ministry in October 2022. In the United Arab Emirates, the ministry is encouraging cement manufacturers to meet 10% of their total energy needs from alternative fuels. This is part of their strategy to implement integrated waste management and reduce carbon emissions.
The decarbonization efforts in the Emirati nation are expected to drive more cement manufacturers towards the adoption of alternative fuels in their manufacturing operations from the short to medium-term perspective.
Firms are entering into acquisition deals to ensure raw material availability in the United Arab Emirates
To further strengthen their position in the Middle East market and to capitalize on the growing demand for cement, firms are entering into mergers and acquisition deals in the region. For instance,
In January 2023, UltraTech Cement Middle East Investments, the subsidiary of UltraTech Cement based in India, announced that the firm had entered into an acquisition deal to buyout 70% of the equity shares in Duqm Cement Project International, a firm based in Oman. The cost of the acquisition is US$2.25 million and is part of UltraTech Cement's strategy to ensure raw material security. The acquisition of Duqm Cement Project International is projected to complete within 90 days from the date of the share sale and purchase agreement.
Scope
United Arab Emirates by Cement Markets, 2018-2027
Residential Buildings Non-Residential Buildings Infrastructure & Other Markets
United Arab Emirates by Cement End-User, 2018-2027
Ready-Mix Concrete Producers Consumers Concrete Product Manufacturers Other End Users
United Arab Emirates by Distribution Channel, 2018-2027
Direct Channel Indirect Channel
United Arab Emirates by Cement Product, 2018-2027
Portland cement Blended Cement Type IS (X), Portland-Slag Cement Type IP (X), Portland-Pozzolan Cement Type IL (X), Portland-Limestone Cement Type IT, Ternary Blended Cement Specialty Cement Rapid Hardening Cement High Alumina Cement White Cement Sulphate Resistant Cement Others Green Cement
For more information about this report visit
About ResearchAndMarkets
ResearchAndMarkets is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
CONTACT: CONTACT: ResearchAndMarkets Laura Wood,Senior Press Manager ... For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
MENAFN08052024004107003653ID1108187746
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.