Demand for cement to be triggered by massive investment in Qatar’s construction sector, Commercialbank Capital report says
Doha-based Commercialbank Capital has said demand for cement is set to be triggered by the massive investment in Qatar’s construction sector.
Cement consumption in the Gulf country is to grow at a compound annual growth rate (CAGR) of 12% up to 2015, the report said. Production capacity by local cement makers, which currently stands at 6.2m tonnes per year (tpy), is sufficient to meet the current demand, but the report warned consumption will be ‘at the peak’ in 2013 and 2014, as most of the projects that are planned or under construction will be completed by 2015.
This will represent a valuable opportunity for cement plants in neighbouring Saudi Arabia and the UAE to export their production, as Qatari companies are ‘unlikely to match this demand,’ the study said.
Qatar National Cement Company (QNCC) is Qatar’s biggest cement producer with a production capacity of 4.4m tpy and a market share of around 70%, according to the report.