Projects currently under execution in the GCC, Iran and Iraq are in excess of US$697bn. Out of these, UAE is believed to account for about 32%, or US$224bn worth of projects. Out of an amount of US$294bn proposed to be invested in construction projects all across the GCC (over the next 3-4 years), UAE is believed to account for about 60%, or about US$177bn. Assuming that all the investment projects valued at US$177bn announced in UAE so far are implemented, MEED Projects suggests that UAE cement demand growth at a CAGR of over 25 per cent in volume-terms during 2005-2009.
On the supply side, announcements have been made by various local players as well as new cement companies for expansion of existing capacities and/or setting up new capacities. New clinker capacities of about 10.9Mt and cement capacities of about 16.9Mt are believed to be coming up in the UAE in the coming 2-3 years – by way of expansions as well as greenfield projects.