WCA November 2013

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wire & Cable aSIa – November/december 2013
news
FoR gCC wire and cable makers
there is reason for optimism, as the
region’s construction industry
experiences a period of resurgence
thanks to increased infrastructure
spending. It is a sharp contrast to the
deep recession the region faced in
2009.
The value of infrastructure and real
estate projects planned for the gCC
up to 2018 is estimated at a surprising
US$1 trillion. This in turn will drive
demand for wire and cable.
according to Integer Research’s wire
& Cable Focus Report: Middle East
and North africa Markets, the gCC
cable industry is well-equipped to
supply this solid demand, but the
local cable makers must evolve to
take full benefit.
In recent years, the gCC has
experienced double-digit growth in
insulated wire and cable capacity,
including the entry of new players into
the market, such as Bahra Cables, al
Fanar, RESCaB, QICC, El Sewedy (in
Saudi arabia and Qatar), and Power
Plus.
This new wave of cable makers is
challenging the dominance of
established local cable producers,
such as Saudi Cable, Riyadh Cables,
Jeddah Cables and ducab.
according to andrea Valentini, senior
analyst at Integer: “Several new
producers are capitalising on their
close business links with end-users.
Bahra Cables has strong links
downstream to key end-users Saudi
Bin Ladin group and Electric House,
and al Fanar has a long established
distribution network in Saudi arabia
and a sister company engaged in EPC
contracting.”
Most of the gCC cable makers are
rising to the challenge of intensified
domestic competition by
implementing a range of strategies.
Many are increasingly looking to new
countries or products to diversify their
market risk, such as ducab’s
expansion into high voltage power
cables.
others are integrating vertically into raw
materials, for example MESC, Jeddah
Cables, and Bahra Cables have all made
recent investments in polymer
compounding capacity, whilst others are
integrating into end-user services, such
as turnkey project management offered
by Riyadh Cables and Saudi Cable.
“our analysis indicates that gCC
cable companies are evolving to
maximise the benefits of a resurgent
construction market, and are
developing the necessary
sophistication to face an increasingly
competitive market.
“Saudi arabia, in particular, will have
the highest wire and cable
consumption growth rate, with 5.4 per
cent compound average growth
forecast annually between 2012 and
2017,” added Mr Valentini.
Integer Research – UK
Website :
Increased investment
and competition is
driving growth
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❍ The Middle East • bigstockphoto.com • Photographers: Haider, balaikin2009, swishippo, cherkas, Orfia and skilledman