Global Investment House (GIH) anticipates that cement demand growth in the Gulf Cooperation Council (GCC) region will advance from 4-5 per cent growth in 2013 to 6-7 per cent this year. Investment in new capacity is strong and confidence is returning to markets. So who will be the winners among the cement producers? By Hettish Karmani, Global Investment House, Kuwait.
High oil prices in recent years have helped the region recover well from the 2008 financial crisis. Consequently, GCC nations witnessed a surge in national budgets, with oil receipts forming a major part of the total revenues for most nations.
Government support has been a key factor pushing construction growth and thereby the cement sector in the GCC. Most GCC members have allocated large portions of their respective budgets to construction activities. For the FY13-14 period, GCC’s aggregate budget expenditure stands at over US$400bn.
