Ideal platform for drywall

The UAE construction industry is expected to grow significantly taking the convenient building material along with it

The UAE is known worldwide as a land of glass and steel. The construction industry is the essence of the UAE economy, playing an integral role in its economic uplift and development. Despite the dire impact of Covid-19, it is bouncing back and is expected to grow in the next few years.

According to Mordor Intelligence, the UAE construction market was valued at $101.45 billion in 2020, and it is expected to reach a value of $133.53 billion by 2026, registering a compound annual growth rate (CAGR) of 4.69 per cent from 2021 to 2026.

The government of the country is also focusing on smart cities and at a similar front plan to digitise up to 1,000 government services and install 2,000 Wi-Fi hotspots in the country. Moreover, liberal trade policies in the country are attracting foreign investors, propelling the construction market. Another aspect to take into consideration is the Expo 2020 Dubai that will be held from October 1, 2021, to March 31, 2022. Due to new tourism and hospitality projects and public spending on infrastructure, the demand for raw materials consequently increases. The UAE has multiple projects in the construction pipeline in the hotel segment with 161 projects/45,753 rooms.

After the mega event, the long-term investments in Abu Dhabi’s commercial building sector will help offset the expected fall. These are in the interest of expanding the capital city’s economy beyond oil. It has an ambitious ‘Abu Dhabi 2030’ plan under which it aims to attract 7.9 million tourists annually and expand its retail and office space to four million and 7.5 million sq m respectfully by 2030.

Government strategies like the Energy Strategy 2050, the Sheikh Zayed Housing Programme, and the Dubai Tourism Strategy give a positive outlook as well. Infrastructure projects are a key part of the UAE’s and GCC’s economic expansion, as they seek to build inter-connected transport and logistics networks plus consistent and trustworthy supplies of clean energy.

According to ‘The Insight Partners’ latest market study on the UAE drywall panels market, the market was valued at $278.07 million in 2020 and is projected to reach $419.35 million by 2028 — it is expected to grow at a CAGR of 5.5 per cent from 2021 to 2028.

Various types of drywall panels are available in the UAE market, and some of them are regular, moisture-resistant, plaster baseboard, paperless, and Type X. Growth of the construction and infrastructure industry and government initiatives in the UAE has significantly contributed to the growth of the drywall panels market in the UAE. Gemini Building Material and Knauf Gips KG are among the well-established players in the market.

In 2017, the ongoing construction projects in the UAE were 11,755 with a value of $818.2 billion that accounted for around 33 per cent of the total value in the GCC countries. The emerging middle-income population in the UAE has significantly boosted the construction industry’s growth. Homeowners, commercial investors, contractors, builders etc. lean toward implementing drywall panels in the construction of homes, retail, offices and more as it is malleable for economical and modern designs. Moreover, the panels are emerging as the latest green building technology with superior performance, which is suitable for the range of commercial and residential construction projects. Hence, the increasing middle-income population and booming construction in the UAE bolster the growth of the UAE drywall panels market.