GCC snapshot—Demand mainly driven by new construction; extensive variety in size, material required to cater to population needs; tile manufactures to focus on green

Decision maker’s spotlight—Cost optimisation through internal processes and introduction of new designs in-line with needs. GCC can be an export hub for the greater MEA region

Scope & Limitations

Africa is a net importer of tiles; Asia’s production surplus offers strong export potential; GCC can trade through and to Asia

The KSA and the UAE are leading consumers and importers; opportunity for local GCC manufacturing to replace imports

Imports comprise 81% of total consumption, while exports with 55% are limited to the GCC only. Supplies to Africa can be explored

High domestic manufacturing potential to replace imports; raw material availability & rising electricity prices a concern; KSA & UAE to be main markets

The KSA & UAE lead demand and consumption. Production lags demand, though local producers also export; therefore significant potential for new entrant

Ceramic tiles dominate KSA market; domestic manufacturing caters to domestic demand & exports to RoGCC. China is an important player

Ceramic tiles dominate UAE market. China supplies 61% of market, domestic production is a low 13%; high potential for expanding domestic production

Oman market reflects a strong presence of GCC manufactured products; opportunities lie in the potential from import substitution

As with the KSA & UAE, ceramic tiles dominate; local production absent, but country can be catered to by regional manufacturers

Market dominated by imports from China & Europe at 70%. Potential for regional companies challenged by strong import supply chains

As with Qatar, market dominated by imports from China & Europe. Being the smallest GCC market, local production is not viable

Residential, commercial, infra segments are major consumers; bespoke tastes & preferences are equally important as price in driving demand

Mega events, infra, housing & hospitality major demand drivers; can build presence via local manufacturing or increased MNC brand representation

Although ceramic tiles dominate, both types expected to show ~10% CAGR up to 2020; manufacturers should have both in portfolio

An export driven strategy imperative for success when building a tiles business in the GCC. Broader Middle East and Africa major areas to cater to

Companies to focus on building channel & brand loyalty in the region; look at long term not short term gains. Use both the Push & pull strategy

Mega Trends—GenY likely to want online retailing of tiles; evolution of smart tiles that support energy harvesting likely, for e.g. in Nigeria and London

Product customisation to be the norm; optimised production techniques will facilitate costs control; Social media to be important for brand communication

Improvements in brand equity and promotion, customer service and introduction of new designs key to gaining traction and sustain

Maximize opportunities from existing products and markets; systematically explore new products and markets including inorganic Opportunites

Growth Consulting – Service Offerings

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