Country Report to 2022

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Market/Industry Insights: The UAE is one of the most interesting markets in this region. There are so many aspects to this industry that make it unique among many markets in the region, and beyond. These include among others the following characteristics:

• Presence of international cement players
• Absence of government ownership
• Presence of several independent grinding plants
• Presence of slag grinding plants
• Mismatch of clinker based estimated capacities and actual milling capacities is several integrated cement plants
• Large cementitious product share (GGBFS mainly, sold directly to Ready-Mix producers)

The list could go on. In addition, supply – demand balance is unattractive compelling the industry to exporting high volumes. Price pressures and relatively high cost structure render the UAE cement industry one of the lowest profitability industries in the region.

Looking ahead, the industry has limited levers to improve its position. As an obvious way forward, the industry is ripe to embark on a wave of consolidation and restructuring. However, whether such initiative will materialise is a moot point given the nature of market participants towards such a move.

Our proprietary analytical tools: Demand projections, Reality Checks - Need, Capability and Funding Assessment, Per Capita Consumption Comparison, Position on Cement Economic Curve. Domestic Capacity Utilisation Factor - DCUF™ - Propensity to export / import. International Trading Assessment Matrix - ITAM™, Capability to export / import. Industry Structure and Dynamics - ISD™ - Nature of Participants, Consolidation Index, Cost Structure and Industry Profitability. Our Ranking Tool - CBRRT™ - Overall Market Attractiveness Assessment

CONTENTS OF THE REPORT:

1.0 The Basic Facts

• Macroeconomic Considerations
• Cement Market Size and past growth
• Products by type
• End users
• Vertical integration
• Distribution chain
• International trade
• Supply characteristics
• Cement plants data / map
• Regional v national

2.0 The Analysis - Market Characteristics

• Demand Considerations
• Reality Check: need, capability and funding
• Further Reality Check: per capita, Cement Economic Curve
• Supply – demand balance considerations, S-D balance and DCUF™
• International Trading Assessment Matrix (ITAM™)
• Industry Structure and Dynamics (ISD™)
• Nature of Market Participants
• Consolidation Index
• Industry Cost Structure and Dynamics including industry profitability and cost escalation forecasts
• Licence to Operate Considerations                                    

3.0 General Considerations and Conclusions

• Supply – demand balance
• Propensity and ability to export
• Industry profitability
• License to operate

4.0 Our Ranking Tool (CBRRT™)

• Overall market attractiveness assessment