Construction markets around the world are being hit this year with the steepest decline in activity in at least 20 years, and the formerly booming construction industry of the Middle East has been no exception. The region will witness a 2.6% decline in total construction spending this year, a dramatic change after average growth on the order of 9% over the past several years.
The Arab cement industry has developed remarkably, particularly through the past three years. Its expansion was closely linked to the building and construction industry, which witnessed unprecedented growth in Arab countries. This resulted in higher demand for cement at 10 - 15%, reaching more than 20% in Qatar.
Cement producers in Kenya, Uganda and Tanzania are struggling to remain competitive in a period of strong demand. Overseas imports, from countries such as China, Egypt, India and Thailand, are flooding the region and are priced significantly lower than the domestic product thanks to cheap freight rates. Cement producers are calling on governments to step in to protect their industries.
Cement and sand imported to Bahrain from Saudi Arabia will henceforth be shipped rather than transported by truck across the King Fahd Causeway, according to reports. This will help to ease traffic congestion and improve delivery times.