GCC: a return of fortunes?

Published 17 February 2020

The performance of the GCC cement sector improved significantly in 2019 when compared with the previous year as higher domestic consumption combined with increased export demand. For 2020, the outlook remains equally promising, supported by expansionary budgets and the normalisation of relations between GCC countries.

Most of the GCC countries, including Oman, announced expansionary budgets,

fuelling expectations of increased construction activity going forward

GCC cement sector fortunes fared relatively better in 2019 compared to 2018. A revival of export fronts and improved local demand resulted in higher profitability last year. For 2020 U-Capital expects the improved outlook and sentiment to continue on the back of expansionary budget announcements, the normalisation of relations between GCC countries, reconstruction in war-inflicted neighbours (mainly Yemen and Syria), an oil price expectation of US$65/bbl, the announcement of affordable housing for nationals, expansion plans by various local and international developers as well as the development of new economic cities and free zones.

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