CERCOUNTRYREPORT United Arab Emirates
“MANUFACTURING AND construction are the second largest contributors to GDP”
by Andrea Serri
Mr. Massaad, what are the current year’s prospects for the UAE ceramic tile industry? There is no specific forecast for the UAE per se but the tile industry is benefitting from overall GDP growth in the region and in particular from increased spending on residential and hotel infrastructure. We antici- pate that the UAE and wider GCC will continue to experience an incre- ase in construction activity, encou- raged by factors such as growth in tourism, positive macroeconomics and high-budget allocations towards mega-projects. Saudi Arabia and the UAE are the leading consumers of ceramic tiles in the region, and this will only continue to increase as these countries have secured the rights to host international events such as Expo 2020 in Dubai.
What are the strengths and weaknesses of your industry? As ceramics is a crucial component in the completion of the majority of construction projects, the construc- tion industry will continue to show positive growth in the region. The GCC has the advantage of being able to competitively price its pro- ducts, primarily due to the availa- bility of raw materials. The GCC imports almost 40 percent of its total demand, with China, Spain, Italy, Egypt and India supplying the largest number of tiles. The GCC also acti- vely exports tiles to countries in the Middle East and Africa. Along with market fluctuations, China presents the most immedia-
Abdallah Massaad, Group CEO, RAK Ceramics P.J.S.C.
te challenge for our industry. China produces low-cost products that appeal to the high degree of price sensitivity in the GCC tile market and this influx of Chinese products has forced many GCC manufacturers to target only the high-end market, as Chinese products tend to domina- te the low end. The same applies for Indian manufacturers in the wall tile sector.
What changes are occurring in the distribution channels used by your industry? Although some UAE tile manufac- turers are vertically integrated with manufacturing, distribution and retail operations, most manufacturers continue to sell through established distribution channels.
What are your main demands from Government?
As the UAE shifts towards a post- oil era, there is a good chance that the industrial sector will beco- me the country’s chief contributor
to GDP. Already a strong driver of the economy, productive segments like manufacturing and construction make up the second largest contribu- tor to GDP, behind oil and gas. The challenge we face today is how to maximise this contribution and create a national economy that is even more diverse and globally competitive. The government’s roadmap is already underway. Recently, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and ruler of Dubai, called for a unified industrial strategy that will increase industry’s contribution to the country’s GDP by 15% by 2022. Similarly, Abu Dhabi is planning to double the size of its industrial base as a percentage of its GDP to reach 10%.
What are the main opportunities and fears for the UAE tile industry? Ceramic tile is becoming very com- petitive. When you look at the con- sumption of carpet, natural marble, natural granite, or wood over the past 10 years, it’s clear we are gaining market share. The average growth in demand for ceramic tile over the past 10 years is 7.3%. The industry is moving in the right direction. The balance of trade deficit is pushing up freight prices, which in turn is increasing the price of raw materials. This, along with currency fluctuations and rising energy costs, is creating the biggest challenge for the industry.
aserri@confindustriaceramica.i 2017 maggio/giugno CER 41
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100
