Strong Performance for UAE Cement Industry

The recent study by Dubai Chamber of Commerce and Industry (DCCI) has found out that the prospects for the UAE cement industry are bright due to growth in investment in infrastructure in the UAE, GCC and key foreign markets.

It adds that the value of construction sector in the UAE will see considerable growth in 2012 because of investment in the logistics support and tourism, which will increase demand for cement. The study, which is based on the Business Monitor International (BMI) UAE Infrastructure report for Q1 2012, finds that given the historic importance of construction projects in the UAE and the GCC, the cement industry has acquired increased prominence as an important industry with growing demand.

It reiterates that the need to build more real-estate and infrastructure in the UAE is expected to drive future demand for cement, while the growth in demand for construction materials from developing countries that presents lucrative export opportunities. "This could especially be the case for emerging markets in Africa, Central Asia and the MENA region, in which supply and demand gaps may be created as long-term economic growth causes increased cement demand." The study recommends that UAE cement businesses develop contacts in these markets in order to fully realise this potential and grow their exports. Meanwhile, they ought to actively continue to enhance their competitive advantage in this industry by creating a brand presence in foreign markets, by differentiating their products, reducing production costs and improving efficiency.