Green materials market in GCC to reach $22.97 bn by 2016

DUBAI, UAE: The green materials market in the Gulf Cooperation Council (GCC) countries is currently in its growth stage, with increasing government initiatives as well as greater consumer awareness on environment and health presenting ample business opportunities for green material suppliers.

Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) remain top countries for investment given their booming population and pace of infrastructure expansion.

New analysis from Frost & Sullivan, titled Strategic Analysis of Green Materials in the GCC Construction Sector, finds that the market earned revenues of $17.91 billion in 2012 and estimates this to reach $22.97 billion in 2016.

"GCC is the fastest developing region in terms of infrastructure and the rising emphasis on sustainable construction practices, lower carbon footprint, and reduced wastage has fuelled the use of green construction materials," said Frost & Sullivan Chemicals and Materials Analyst. "Bahrain, Qatar, Saudi Arabia and the UAE have already established green building councils to address sustainability issues."

While existing suppliers have nurtured robust customer relationships with governments and large clients, the untapped private and small real-estate construction segments widen the prospects of market entrants and offer added avenues for revenue generation, said the report.

The market is also slowly recovering from the downturn, which decreased foreign investments in the construction sector and curbed the adoption of green materials.

"Companies must look to comply with the requirements of local green body councils and design products specific to the rating system for maximum sustainability points," advised the Analyst. "Since regional governments are the largest investors in construction, producing solutions suited to their needs will ensure profitability."

Improving consumer awareness on the economic, social and environmental benefits of green materials will sustain market growth in the long run.