Professional Documents
Culture Documents
Structural Metal
Products
2017
Manufacture of Structural Metal Products
Manufacture of Structural Metal Products
Abdulaziz bin Nasser al-Khalifa
CEO
“
The gross value added Small and medium-sized enterprises (SMEs) are essential enablers of Qatar’s
aspiration to build a diversified and sustainable economy. As the private
by the sector grew sector development arm of the Government, we hold our national strategic
development agenda – Qatar National Vision 2030 – central to all of our
by 18.8 times from endeavors. We hold a firm belief that it is our core responsibility to contribute to
QAR149mn in 2001 to the ongoing efforts of diversifying our sources of national income and creating
a knowledge-based economy. We always knew that in order to chart the type
QAR2,812mn in 2015. of progressive economic and social path envisioned by our State, we need to
become imaginative and proactive in our approach for our future generations.
In doing so, QDB’s role is not limited to financing enterprises, as it provides
SMEs and entrepreneurs with a wide range of non-financial services. Our ultimate
objective is to become a “partner of first resort” for Qatar’s current and future
entrepreneurs and SMEs. Thus, we realized that one of the most important ways
to achieve our aspiration is through enabling access to granular market insights
and trends, which is a pre-requisite for strong business ventures.
In line with our above objectives to establish a reliable data and analysis, and in
order to extend a meaningful support to Qatari entrepreneurs and SMEs, QDB
intends to publish a series of reports on potential opportunities available across
various sectors in the local market. These series aim to provide entrepreneurs
with potential opportunities and perspectives about these sectors, including
competitive sectorial landscape and data about existing companies.
This report covers the manufacture of structural metal products in Qatar. This
sector comprises product segments, such as structural steel fabrication, pre-
engineered buildings, pre-fabricated buildings, architectural steel fabrication
and architectural aluminum fabrication. According to the latest statistics
published by the Ministry of Development Planning and Statistics (MDPS) in
2016, the domestic production of this sector was valued at QAR6,424mn arising
from 558 establishments that employed 27,398 personnel in 2015. The gross
value added by the structural metal product sector grew by 18.8 times from
QAR149mn in 2001 to an estimated QAR2,812mn in 2015.
All product segments in this sector are driven by the construction and
infrastructure sectors, and therefore, are likely to witness substantial demand
due to the pipeline of upcoming projects.
I invite readers to go through the report and know more about the sector prospects.
Chart 133. Qatar’s Aluminum Sheet Cladding Works Demand, 2001 - 2015...................................................................................... 150
Chart 134. Aluminum Sheet Cladding Market Segmentation, 2015.................................................................................................... 150
Chart 135. Qatar’s Aluminum Sheet Cladding Works Demand Forecast, 2015 to 2026..................................................................... 151
Chart 136. Qatar’s Aluminum Sheet Cladding Works Imports, 2001 - 2015........................................................................................ 151
Chart 137. Qatar’s Aluminum Sheet Cladding Works Imports Vs Domestic Sales, 2001 - 2015........................................................ 152
Chart 138. Qatar’s Aluminum Sheet Cladding Works Import Forecast, 2015 to 2026........................................................................ 152
Chart 139. Aluminum Sheet Cladding Works Price Range................................................................................................................... 153
Chart 140. Qatar’s Aluminum Sheet Cladding Works Selling Prices Forecast, 2015 - 2026............................................................... 153
Chart 141. Qatar’s Aluminum Doors, Windows and Partitions Demand, 2001 - 2015........................................................................ 154
Chart 142. Qatar’s Aluminum Doors, Windows and Partitions Demand Forecast, 2015 to 2026...................................................... 155
Chart 143. Qatar’s Aluminum Doors, Windows and Partitions Imports, 2001 - 2015.......................................................................... 156
Chart 144. Qatar’s Aluminum Doors, Windows and Partitions Exports, 2001 - 2015.......................................................................... 156
Chart 145. Key Sources of Aluminum Doors, Windows and Partitions Imports, 2010 - 2015............................................................. 157
Chart 146. Key Destinations of Aluminum Doors, Windows and Partitions Exports, 2010 - 2015..................................................... 157
Chart 147. Qatar’s Aluminum Doors, Windows and Partitions Imports Vs Domestic Sales, 2001 - 2015.......................................... 158
Chart 148. Qatar’s Aluminum Doors, Windows and Partitions Import Forecast, 2015 to 2026.......................................................... 159
Chart 149. Qatar’s Aluminum Doors, Windows and Partitions Export Forecast, 2015 to 2026.......................................................... 159
Chart 150. Qatar’s Aluminum Doors, Windows and Partitions Selling Prices Forecast, 2015 to 2026.............................................. 160
Chart 151. Qatar’s Aluminum Railing and Fencing Demand, 2001 - 2015........................................................................................... 161
Chart 152. Qatar’s Aluminum Railing and Fencing Demand Forecast, 2015 to 2026......................................................................... 161
Chart 153. Qatar’s Aluminum Railing and Fencing Imports, 2001 - 2015............................................................................................. 162
Chart 154. Qatar’s Aluminum Railing and Fencing Exports, 2001 - 2015............................................................................................. 162
Chart 155. Key Sources of Aluminum Railing and Fencing Imports, 2010 to 2015............................................................................. 163
Chart 156. Key Destinations of Aluminum Railing and Fencing Exports, 2010 to 2015..................................................................... 163
Chart 157. Qatar’s Aluminum Railing and Fencing Imports Vs Domestic Sales, 2001 - 2015............................................................. 164
Chart 158. Qatar’s Aluminum Railing and Fencing Import Forecast, 2015 to 2026............................................................................ 164
Chart 159. Qatar’s Aluminum Railing and Fencing Export Forecast, 2015 to 2026............................................................................. 165
Chart 160. Qatar’s Aluminum Railing and Fencing Selling Prices Forecast, 2015 to 2026................................................................. 165
Chart 161. Qatar’s Architectural Aluminum Fabrication Market Structure and Capacity Utilization................................................. 166
Chart 162. Qatar’s Architectural Aluminum Fabrication Demand-Supply Analysis, 2015 to 2026..................................................... 169
ACP Aluminum Composite Panels MENA Middle East And North Africa
BS British Standards mm Millimeter
bn Billion mn Million
BUA Built-Up Area MT Metric Ton
CAGR Compounded Annual Growth Rate Nas Non-Alloy Steel
CBUA Completed Built-Up Area nes Not Elsewhere Specified
Dmtu Dry Metric Ton Unit OHSAS Occupational Health And Safety
Assessment Standards
EHS Environment, Health And Safety
p.a. Per Annum
EU European Union
PEB Pre-Engineered Building
ERW Electric Resistance Welded
QAR Qatari Riyal
FIFA Fédération Internationale De Football Association
QCS Qatar Construction Specifications
GI Galvanized Iron
QDB Qatar Development Bank
GCC Gulf Cooperation Council
R2 R-Squared
GDP Gross Domestic Product
SEZ Special Economic Zones
GOIC Gulf Organization For Industrial Consulting
SIDF Saudi Industrial Development Fund
HRC Hot Rolled Coils
SME Small And Medium Enterprises
HS Code Harmonized System Code
Sqm Square meter
ias Iron And Steel
TPA Tons Per Annum
ISIC International Standard Industrial Classification
UAE United Arab Emirates
ISO International Organization For Standardization
UK United Kingdom
ITC International Trade Centre
USA United States Of America
KSA Kingdom Of Saudi Arabia
USD United States Dollar
MBS Metal Building Software
WSA World Steel Association
MDPS Ministry Of Development Planning And Statistics
The structural metal products sector comprises a wide range of finished products
that are fabricated using semi-finished products, such as angles, channel sections,
sheets and plates of aluminum and steel. These semi-finished products are subjected
to many processes, such as bending, cutting, welding, machining and assembling, to
produce the desired finished products. These finished products can be classified into
product segments such as (a) structural steel fabrication, (b) pre-engineered buildings
(PEBs), (c) pre-fabricated buildings, (d) architectural steel fabrication products and
(e) architectural aluminum fabrication products. Products from these segments are
finished products used in real estate and infrastructure projects.
The construction sector drives the growth of the structural metal products sector.
From 2001 to 2015, the sector grew at a CAGR of 19.3% from QAR653mn in 2001
to an estimated QAR7,733mn in 20151. According to the latest statistics2 published
by MDPS in 2016, this sector had 558 manufacturing establishments that together
employed a workforce of 27,398 personnel in 2015. The gross value added by the
sector grew by 18.8 times from QAR149mn in 2001 to QAR2,812mn in 2015.
Analyzing the 2015 sector composition, structural steel fabrication emerges as
the largest segment, constituting 53.1% of the sector in value terms3, followed by
architectural aluminum fabrication, which has a 21.4% share. Other product segments
such as architectural steel fabrication, pre-fabricated buildings and pre-engineered
buildings have sector shares of 12.4%, 10.4% and 2.6%, respectively. Domestic
production of raw materials is limited to small steel sections, flat bars, aluminum
extrusion profiles and aluminum panels. Qatar is heavily dependent on imports for
procuring raw materials, such as steel sheets, plates, angles, channels, rods, pipes
and glass, required by the sector.
1
Team Analysis
2
MDPS: Annual Bulletin of Industry & Energy Statistics 2015
3
Team Analysis
4,8
Primary Interviews
5, 6,7
Team Analysis
11,13
Primary Interviews
12,14
Team Analysis
Semi-finished products
are the key raw materials Ores containing metals
for fabrication of all are extracted and
structural & architectural processed to yield metal
metal products concentrates.
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15
Arcelor Mittal Corporate Presentation
Architectural
Structural steel Pre-engineered Pre-fabricated Architectural
aluminum
fabrication buildings buildings steel fabrication
fabrication
Aluminum doors,
Pre-fabricated
Decorative doors windows and
private units
partitions
Aluminum sheet
Rolling shutters
cladding works
Staircase railing
Structural steel This segment includes construction works for load-bearing steel frames (i.e., columns, beams, floors,
fabrication trusses, etc.) for residential and commercial buildings, industrial facilities and other projects.
This segment includes pre-engineered structures made of sheets and plates for warehouses, factory
PEBs
sheds, hangars, etc.
Pre-fabricated This segment includes pre-fabricated labor accommodation, pre-fabricated private units (site offices,
buildings mosques, majlis, security kiosks and rooms for drivers or maids) and pre-fabricated green houses.
Architectural steel This segment includes entrance gates, decorative doors, steel flush doors, rolling shutters, staircase
fabrication handrail, and grills and fencing.
This segment includes: (a) aluminum and glass works (aluminum and glass doors and windows,
Architectural
curtain wall, skylight and domes); (b) aluminum sheet cladding works; (c) aluminum railing and
aluminum fabrication
fencing; and, (d) all aluminum doors, windows and partitions.
16
Steel Construction Encyclopedia
17
Primary Interviews
Pre-fabricated
buildings Security kiosk
Site office
18
Team Analysis and Primary Interviews
ors Fire
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ors
Decora
No
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ail
fire
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te
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St
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Window grill
De
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ate
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En
ils
Roll
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shut
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Entr
Aluminum Aluminum
window doors
19
Designing Buildings Ltd
20
Encyclopedia Britannica
21
Primary Interviews
22
Team Analysis
Sheet piling of iron or steel, whether or not drilled, punched or made from assembled
73011000 Sheet piling
elements; welded angles, shapes and sections, of iron or steel; sheet piling
Sheet piling of iron or steel, whether or not drilled, punched or made from assembled
73012000 Sheet piling elements; welded angles, shapes and sections, of iron or steel; angles, shapes and
sections
Note23: PEBs are dismantled and shipped during exports. Different components are captured in different HS codes by material
type. Hence, HS codes are related to products, by type of buildings.
23
Primary Interviews
94060011 Pre-fabricated green houses Pre-fabricated buildings of plastics: Greenhouses for cultivation purposes
94060014 Pre-fabricated labor camps Pre-fabricated buildings of plastics: Buildings for residence or school
94060021 Pre-fabricated green houses Pre-fabricated buildings of wood: Greenhouses for cultivation purposes
94060024 Pre-fabricated labor camps Pre-fabricated buildings of wood: Buildings for residence or school
94060031 Pre-fabricated green houses Pre-fabricated buildings of iron: Greenhouses for cultivation purposes
94060034 Pre-fabricated labor camps Pre-fabricated buildings of iron: Buildings for residence or school
94060044 Pre-fabricated labor camps Pre-fabricated buildings of aluminum: Buildings for residence or school
94060054 Pre-fabricated labor camps Pre-fabricated buildings of fiberglass: Buildings for residence or school
Note24: Pre-fabricated buildings are dismantled and shipped during exports. Different components are captured in different HS
codes by material type. Hence, HS codes are related to products, by type of buildings.
24
Primary Interviews
Cloth (including endless bands), grill, netting and fencing, of iron or steel
wire; expanded metal of iron or steel; grill, netting and fencing, welded at the
73142000 Steel grills and fencing
intersection, of wire with a maximum cross sectional dimension of 3mm or more
and having a mesh size of 100 sq cm or more
Cloth (including endless bands), grill, netting and fencing, of iron or steel wire;
73143100 Steel grills and fencing expanded metal of iron or steel; other grill, netting and fencing, welded at the
intersection: plated or coated with zinc
Cloth (including endless bands), grill, netting and fencing, of iron or steel wire;
73143900 Steel grills and fencing expanded metal of iron or steel; other grill, netting and fencing, welded at the
intersection: other
Cloth (including endless bands), grill, netting and fencing, of iron or steel wire;
73144100 Steel grills and fencing expanded metal of iron or steel; other cloth, grill, netting and fencing: plated or
coated with zinc
Cloth (including endless bands), grill, netting and fencing, of iron or steel wire;
73144200 Steel grills and fencing expanded metal of iron or steel; other cloth, grill, netting and fencing: coated
with plastics
Cloth (including endless bands), grill, netting and fencing, of iron or steel wire;
73144900 Steel grills and fencing
expanded metal of iron or steel; other cloth, grill, netting and fencing: other
Cloth (including endless bands), grill, netting and fencing, of iron or steel wire;
73145000 Steel grills and fencing
expanded metal of iron or steel; expanded metal
Galvanized iron slit coils, hot-rolled sections for plinth support and footing on ground.
Pre-fabricated buildings Exteriors made from various materials, such as rockwool, fiberglass, wood and aluminum-
based on user specifications
Architectural aluminum
Aluminum profiles, aluminum sheets, glass, silicon, paint, consumable, etc.
fabrication
25, 26
Primary Interviews
Flat-rolled products of iron or non-alloy steel, of width 600mm or more, hot-rolled, not
72089000 Hot-rolled sheets
clad, plated or coated. Other
Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad,
plated or coated. Not further worked than hot-rolled: rolled on four faces or in a closed
72111300 Hot-rolled sheets
box pass, of a width exceeding 150mm and a thickness of not less than 4mm, not in
coils and without patterns in relief
Flat-rolled products of iron or non-alloy steel, of a width of less than 600mm, not clad,
72111400 Hot-rolled sheets plated or coated. Not further worked than hot-rolled. Other, of a thickness of 4.75mm
or more
Flat-rolled products of iron or non-alloy steel, of a width of less than 600mm, not clad,
72111900 Hot-rolled sheets
plated or coated. Not further worked than hot-rolled. Other
Flat-rolled products of iron or non-alloy steel, of a width of less than 600mm, not clad,
72112300 Cold-rolled coils plated or coated. Not further worked than cold-rolled (cold reduced): containing by
weight less than 0.25% of carbon
Flat-rolled products of iron or non-alloy steel, of a width of less than 600mm, not clad,
72112900 Cold-rolled coils
plated or coated. Not further worked than cold-rolled (cold-reduced): Other
Flat-rolled products of iron or non-alloy steel, of a width of less than 600mm, not clad,
72119000 Cold-rolled coils
plated or coated. Other
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. U-, I- or H- sections, not further
72161000
and sections worked than hot-rolled, hot drawn or extruded, of a height of less than 80mm
Angles, shapes and sections of iron or non-alloy steel. L- or T-sections, not further
Angles, shapes
72162100 worked than hot-rolled, hot drawn or extruded, of a height of less than 80mm:
and sections
L-sections
Angles, shapes and sections of iron or non-alloy steel. L- or T-sections, not further
Angles, shapes
72162200 worked than hot-rolled, hot drawn or extruded, of a height of less than 80mm:
and sections
T-sections
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. U-, I- or H- sections, not further
72163100
and sections worked than hot-rolled, hot drawn or extruded of a height of 80mm or more: U-sections
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. U-, I- or H-sections, not further
72163200
and sections worked than hot-rolled, hot drawn or extruded of a height of 80mm or more: I-sections
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. U-, I- or H-sections, not further
72163300
and sections worked than hot-rolled, hot drawn or extruded of a height of 80mm or more: H-sections
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. L- or T-sections, not further
72164000
and sections worked than hot-rolled, hot drawn or extruded, of a height of 80mm or more
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. Other angles, shapes and
72165000
and sections sections, not further worked than hot-rolled, hot drawn or extruded
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. Angles, shapes and sections, not
72166100
and sections further worked than cold formed or cold finished: obtained from flat-rolled products
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. Angles, shapes and sections, not
72166900
and sections further worked than cold formed or cold finished: Other
Angles, shapes Angles, shapes and sections of iron or non-alloy steel. Other: cold formed or cold
72169100
and sections finished from flat-rolled products
Angles, shapes
72169900 Angles, shapes and sections of iron or non-alloy steel. Other
and sections
Flat-rolled products of stainless steel, of a width of 600mm or more. Not further worked
72191100 Hot-rolled plates
than hot-rolled, in coils: of a thickness exceeding 10mm
Flat-rolled products of stainless steel, of a width of 600mm or more. Not further worked
72191200 Hot-rolled plates
than hot-rolled, in coils: of a thickness of 4.75mm or more but not exceeding 10mm
Flat-rolled products of stainless steel, of a width of 600mm or more. Not further worked
72192100 Hot-rolled plates
than hot-rolled, not in coils: of a thickness exceeding 10mm
Flat-rolled products of stainless steel, of a width of 600mm or more. Not further worked
72192200 Hot-rolled plates
than hot-rolled, not in coils: of a thickness of 4.75mm or more but not exceeding 10mm
Flat-rolled products of stainless steel, of a width of 600mm or more. Not further worked
72193100 Cold-rolled plates
than cold-rolled (cold reduced): of a thickness of 4.75mm or more
Flat-rolled products of stainless steel, of a width of less than 600mm.: Not further
72201100 Hot-rolled plates
worked than hot-rolled: of a thickness of 4.75mm or more
Angles, shapes Other bars and rods of stainless steel; angles, shapes and sections of stainless steel.
72224000
and sections Angles, shapes and sections
Angles, shapes Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy
72287000
and sections steel; hollow drill bars and rods, of alloy or non-alloy steel. Angles, shapes and sections
Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or
73063000 Hollow sections similarly closed), of iron or steel. Other, welded, of circular cross section, of iron or
non-alloy steel
Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or
73064000 Hollow sections
similarly closed), of iron or steel. Other, welded, of circular cross section, of stainless steel
Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted
73065000 Hollow sections or similarly closed), of iron or steel. Other, welded, of circular cross section, of other
alloy steel
Tubes, pipes and hollow profiles, welded, having a non-circular cross section, of iron or
73066000 Hollow sections steel (excluding seamless, and line pipe of a kind used for oil or gas pipelines or casing
and tubing of a kind used in drilling for oil or gas)
73066900 Hollow sections Other, welded, of non-circular cross section of other non-circular cross section
Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or
73069000 Hollow sections
similarly closed), of iron or steel. Other
76042100 Aluminum profiles Aluminum bars, rods and profiles hollow profiles
Aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm.: Rectangular
76061200 Aluminum sheets
(including square) : Of aluminum alloys
27,29
Team Analysis
28
Primary Interviews
4,107 4,500
600 3,996
4,000
500 3,500
Thousand MT
2,770 3,000
400 2,605
QAR mn
2,168 2,222 2,500
2,021
300 1,691
1,464 2,000
418 455 442 1,500
200 331 994
318 317
245 267 243 1,000
165 238 220
100 272 144 195
147 500
57 53 57
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Structural Steel Fabrication Market Size (Volume, 000's MT) Structural Steel Fabrication Market Size (Value, QAR mn)
Source: Team Analysis, MDPS Annual Bulletin of Industry and Energy Statistics 2001-2015, ITC Trademap
2.1.1.2. Market Size Segmentation by Products Chart 2. Structural Steel Fabrication Market
The 2015 market for structural steel fabrication amounted to Segmentation, 2015
441,684MT30. Primary interviews with steel fabrication units
indicate that structural steel fabrication for factory sheds and
9% Others
warehouses form 50% of the demand followed by real estate 2% Stadium 50%
developments at 15% and infrastructure projects at 10%. Steel Factory and
fabrication demand arising from oil and gas, petrochemical, 4% Metro Rail Warehouses
water and power sector projects together formed 10% of this
segment. Thus, industrial developments constituted 65% of 10%
the demand. Oil, Gas,
PetroChem,
2.1.1.3. Demand Drivers Power, Water
30
Team Analysis
31
Primary Interviews
400
QAR mn
2,500
300
2,000
474 453 463 457
442 427 444 447
200 411 401 403 409 1,500
1,000
100
500
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Structural Steel Fabrication Market Size (Volume, 000's MT) Structural Steel Fabrication Market Size (Value, QAR mn)
Source: Team Analysis, MDPS Annual Bulletin of Industry and Energy Statistics 2001-2015, ITC Trademap
32
Team Analysis
33
Zawya Database on projects in Qatar
250,000 50%
%
185,529
200,000 40%
34, 37
Primary Interviews
35,36
Team Analysis
Average percentage share of capacity used for structural works % 92.5% 82.5% 30.0%
Structural fabrication average capacity p.a. per player MT 18,553 1,485.0 45.0
Source: Team Analysis, Primary interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015
• Stadia
SOLB26 Al Misnad Group 2007 42,000
• Commercial and multi-story
38
Team Analysis
• Steel building
• Canopies
• Parameters
Equipment Rental
Al Wadi 1971 • Car sheds 12,000
Trading Company
• Fences
• Handrail
• PEB
• High-rise buildings
• Oil and Gas
• Aviation
IronMount Grand Mart Group 2012 12,000
• Industrial projects
• Warehouses and showroom
• Commercial steel bridges
• Steel buildings
Steel
• PEBs
Engineering NA 2013 6,000
• Pipe racks
Technology
• Warehouses
• Airport extension
• Railway and stadium
Leo Steel NA 1990 3,600
• Roofing works,
• Various steel doors and windows
• Car shades
Doha Quick
NA 2006 • Hangers, fencing, entrance cover 1,500
Space
• Canopy
2.1.2.3. Business Model Analysis Leading firms such as Eversendai Qatar and Frijns Qatar
Given the low entry barriers, widespread application of steel are a result of the joint ventures between international steel
and large market size, structural steel fabrication has been an fabrication contractors and established Qatari business groups.
attractive sector for Qatari entrepreneurs. With several firms This combines all of the above success factors — chief among
operating in the market and each targeting the same project, them being winning contracts i.e., access to markets.
competition to win contracts is intense. These factors have Primary interviews with fabricators have indicated that leading
shaped the business model of several leading civil contractors civil contractors prefer to award a major portion of the steel
in Qatar. fabrication contracts to in-house steel fabrication units or to
Success in any industrial venture requires confluence of important affiliated and related entities. Most large-sized and medium-
parameters, such as (a) access to markets, (b) operational sized firms have strategic linkages with established civil
expertise, (c) access to funds, and (d) access to raw material. contractors in the form of holding-subsidiary relationship by
the virtue of being a sister concern.
Raw Material: Qatar does not have domestic production of raw Number of Players: Due to the fragmented nature of the market
material, such as steel plates, sheets and heavy sections. The and the large number of players (467 players), steel fabrication
domestic raw material production capacity is underdeveloped, market in Qatar is characterized by fierce competition and
limited to small sections (less than 80mm). Hence, all structural price sensitivity. Prices for all types of players, such as large,
steel fabrication units in Qatar depend on imports to meet medium and small, vary based on the type of project, design
their raw material needs. and level of complexity. Large players handle complex projects
that require special skills, capabilities and equipment. As
Our primary research indicates that raw material is procured compared to them, the small- and medium-sized players focus
from countries such as China, India, Saudi Arabia, Turkey and on project involving less complexity.
the UAE. Expensive raw material significantly impacts the cost
of domestically produced finished goods.
2.1.3. Trade Analysis
High Operational Expenses: Our primary interviews indicate
2.1.3.1. Historical Trade Analysis
that operational costs are significantly higher in Qatar than
in nations exporting to Qatar, i.e., China, India, the UAE, The analysis of historical import data indicates that imports
Turkey, etc. This adversely affects the price competitiveness of increased from 46,668MT in 2001 to 297,878MT in 2008,
domestic production. Operational expenses are affected by indicating a CAGR of 30.3%. In value terms, the imports grew
high rent for accommodation that drives the salaries, and the at a CAGR of 43.2% from QAR180mn in 2001 to QAR2,225mn
rent for non-residential spaces increases the fixed expenses. in 2008. Thereon, imports decreased due to economic
slowdown of 2009. The imports have reduced from 152,217MT
Time to Market: According to industry players, procuring raw (QAR1,083mn) in 2010 to 76,349MT (QAR409mn) in 2015.
material is time consuming, which leaves very little time to
300 1,883
2,000
1,722
250
1,301
1,500
Thousand MT
200
QAR mn
1,083 798
228
150 686 298
284 1,000
711
213 508
100 205
526 409
152 149
331 134 500
180 200 110
50 142 99
75 76
47
47 44
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Structural Steel Fabrication Imports (Volume, 000's MT) Structural Steel Fabrication Imports (Value, QAR mn)
Source: ITC Trademap, Team Analysis
The analysis of historical export data39 indicates that exports form a very small segment as compared to the domestic market.
Export volumes increased from 613MT in 2001 to 1,274MT in 2015, indicating a CAGR of 7.4%.
5 250
Thousand MT
198
QAR mn
4 200
7.3
114
3 150
5.2
4.5 4.3
2 4.1 3.7 100
3.6 3.4 5.7 3.6
43 3.1
29 1.7
1 21 17 26 1.3 50
13 5
0.6 20
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Structural Steel Fabrication Exports (000s,MT) Structural Steel Fabrication Exports (QAR mn)
39
ITC Trademap
5% 3%
Sheet piling Steel towers and
lattice masts
6% Others
15%
Steel sheds Structural Steel
and domes Fabrication
Exports
1,664 MT
71%
Steel bridges and
bridge sections
70% 70%
USA
Saudi Arabia
60% 60%
Turkey
50% 50%
40% 40%
30% 30%
UAE
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
40
ITC Trademap
Chart 10. Key Destinations for Structural Steel Fabrication Exports, 2010 to 2015
100% 100%
50% 50%
Saudi Arabia
40% 40%
30% 30%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
The area graph shown above indicates that the share of top
five countries increased from 80.1% in 2010 to 93.0% in 2015.
The small quantity of structural steel fabrication products that
Qatar exports is targeted toward nearby countries, such as the
UAE, Saudi Arabia and Kuwait. During 2010 to 2015, the share
of the UAE decreased, while that for Saudi Arabia increased
consistently.
41
ITC Tradevmap
Chart 11. Qatar’s Structural Steel Fabrication Imports v/s Domestic Sales, 2001 to 2015
500 91% 455 100%
86% 87% 442
450 81% 83% 82% 418 90%
318 76
400 71% 80%
65%
350 62% 267 63% 317 70%
Thousand MT
57%
300 60%
284
% share
245 298 238 243 99
250 220 50%
205
200 165 152 45% 75 40%
147 149 110
150 213 34% 30%
31%
100 142 20%
57 53 57 134
17%
50 47 10%
44 47 113 120 171 115 89 133 145 218 365
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 12. Qatar’s Structural Steel Fabrication Import Forecast, 2015 to 2026
600 100%
90%
500 474 463
442 444 453 447 457 80%
427 411 401 403 409
76 70%
400 181 157 150
157
Thousand MT
156 149
151 60%
154 147 147
% share
148
300 50%
38% 37% 37% 36% 36%
35% 35% 35% 34% 33% 33% 40%
200
30%
17% 276 293 288 296 306 298 307
257 253 257 262 20%
100
10%
365
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
42, 43
Team Analysis
Chart 13. Qatar’s Structural Steel Fabrication Export Forecast, 2014 to 2026
400 20%
367
350 18%
1.7 312 304 314
298 294 303 16%
300 281
263 259 263 268 6.5 6.9 14%
5.3 6.1 6.3 6.7
5.1
Thousand MT
250 12%
5.5 5.6 5.8 5.9
200 10%
%
365
150 306 307 8%
276 293 288 296 298
257 253 257 262
6%
100
4%
1.8% 1.8% 2.1% 2.2% 2.2% 2.2% 2.1% 2.1% 2.1% 2.2% 2.2%
50 2%
0.5%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 14. Qatar’s Structural Steel Fabrication Demand-Supply Analysis, 2014 to 2026
700
600
585
585
585
585
585
585
585
585
585
585
585
585
500
474
463
400
457
453
447
444
442
427
411
409
403
401
Thousand MT
300
200
100
(100)
(111) (132) (122) (128)
(200) (143) (158) (141) (138)
(173) (184) (181) (176)
(300)
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Structural Steel Fabrication Market Size (Total Demand, incl. imports) 000s MT
Supply (Domesitc installed capacity) 000s MT Demand Supply Gap
Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015, ITC Trademap
44
ITC Trademap
45, 47
Team Analysis
46
MDPS
Manufacture of Structural Metal Products 49
2.1.5. Pricing Analysis
The key factors affecting product pricing are raw material costs and labor costs. These collectively account for an average of
70% of the production costs. Domestic production of raw material in Qatar is extremely limited and hence, steel fabrication units
are heavily dependent on imports for sourcing raw material or purchasing it from local traders and distributors. Thereby, raw
material prices, which are affected by global macro level trends, drive the selling price of finished goods. The key components
of production costs are provided in the adjoining table. Profits and contingency are assumed at additional 10% to 15% and 5%
to10%, respectively, to arrive at finished goods pricing.
Steel Fabrication: Selling prices for steel fabrication are quoted on an MT basis and vary as per the design, level of complexity
and type of paint (standard paint, cementitious paint, intumescent paint). Currently, the 2016 domestic prices for structural steel
fabrication are in the following range:
• Steel fabrication (with standard paint): QAR5,500 to 7,000/MT
• Steel fabrication (with cementitious paint): QAR8,000 to 9,000/MT
• Steel fabrication (with intumescent paint): QAR13,000 to15,000/MT
Trends in selling price are affected by raw material price. The average domestic prices and average import prices for
structural steel fabrication in Qatar have been forecast considering the trends in the iron ore prices (2015 to 2026) forecast by the
World Bank.
Average domestic prices for structural steel fabrication are expected to range from QAR9,037 per MT in 2016 to QAR12,300
per MT in 2026, implying a CAGR of 3.13%. Average import prices for structural steel fabrication are expected to range from
QAR4,796 per MT in 2016 to QAR6,528 per MT in 2026.
6,000
6,234 6,528
5,687 5,954
5,152 5,355 5,187 5,431
4,000 4,796 4,732 4,954
4,316 4,519
2,000
0
2014 2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
STRENGTHS OPPORTUNITIES
• Large addressable market of QAR4,107mn in 2015 • Upcoming projects from the industrial, infrastructure
growing at a CAGR of 1.44%, in value terms, till 2026. and commercial sectors.
• A wide range of application in different projects, • Opportunity for the mid- to large-sized civil contractors
such as industrial, infrastructure, commercial and other to backward integrate and serve captive demands.
real estate.
• Domestic players have been able to successfully
substitute imports over last decade.
SWOT
WEAKNESSES THREATS
• Approximately 33% to 38% of the market would be • Low-priced imports adversely impacting the
served by imports that are 25% to 40% cheaper48 as salability of domestic production.
compared to domestic production. • Intense rivalry between fabricators threatening
• Dependence on imports for raw materials affecting new entrants.
price competitiveness. • Highly price-sensitive market with small
unorganized players and medium players that
undercut the large-sized organized players.
Summary:
In the medium- to long-term, the strengths and opportunities outweigh the weaknesses and threats due to large market size,
upcoming projects pipeline in Qatar and opportunities for civil contractors to backward integrate.
THREAT OF
NEW ENTRY
Medium:
• Structural steel fabrication
for SME players is neither
capital intensive nor
technology intensive.
• Large-sized players focusing
on complex projects need
technical expertise and
large investment.
BARGAINING BARGAINING
COMPETITIVE RIVALRY
POWER – SUPPLIERS POWER – CONSUMERS
High: High: High:
• Raw material for steel • Steel fabrication market is • Due to a large number of
fabrication is not significantly competitive fabricators, the bargaining
manufactured in Qatar. with several players power of consumers is high.
There are a few raw material operating in the market.
• Moreover, very little scope
manufacturers in the GCC Intense competitive
for product differentiation
region and several steel rivalry ensures that price
on technical grounds further
fabricators. Raw material and relationship are key
strengthens consumers’
manufactures, have high deciding factors in securing
bargaining power.
bargaining power. a job order.
THREAT OF
SUBSTITUTION
Low:
• The boundaries within
which concrete can be used
are well set, and beyond
them, concrete cannot
substitute steel and vice
versa. Aluminum is unlikely
to substitute structural
steel due to high cost and
difficulty in fabrication.
48
Primary Interviews
Operational Efficiency
Efficiency in day-to-day operations — fabrication,
supervision and other shop floor activities — can help
in cost optimization. Compliance with ISO norms
for Quality (ISO 9001), OHSAS (ISO 18,001) and
Environment (ISO 14001) could lead to standardization50
of procedures, bring in checks and balances, and help
achieve compliance with regulatory norms. This can be
a key tool in achieving efficiency in operations.
Technical Know-how
Technical knowledge of fabricators, workforce
and sales team are important factors to execute
highly complex projects with optimum efficiency51
and minimal errors. Technical know-how enables
fabricators to stay ahead of the competition as
well as deliver leading services to their customers.
Customer Service
A thorough understanding of clients’ requirements is crucial
for companies to gain the trust of their customers. Fabricators
Investment in Machinery need to constantly work along with their clients in order
to provide them with seamless solutions and gain a deep
Companies need to invest in modern
understanding of their challenges and requirements.
machinery, experienced welders, designers
and project managers. This would enable
them to undertake highly complex projects
and gain an edge over the competition.
49, 50, 51
Primary Interviews
2.3. Outlook
Going ahead, Qatar market is expected to offer sizable In terms of challenges, the market is likely to remain significantly
opportunities for new units in the structural steel fabrication competitive and price sensitive. Significant dependence on
market that would continue to remain a major portion (53.1%) imports for procurement of raw material and high operational
of the structural metal products sector. In terms of domestic expenses (salaries, rent, etc.) as compared to those in other
production value, structural steel fabrication is likely to countries such as the UAE and Saudi Arabia would limit export
constitute 56.7% of the overall structural metal products sector. potential to rare opportunities of up to 2.2% of the domestic
In the medium- to long-term, large scale industrial developments production for structural steel fabrication. Imports are likely
such as SEZs — promoted by Manateq, metro rail, stadia, to remain cheaper as compared to domestic production, and
industrial projects and upcoming real estate projects — would further heighten the challenges.
drive the demand. The market size is estimated to be 427,257MT In the medium- to long-term, the strengths and opportunities
(QAR3,247mn) in 2016. On the back of strong demand drivers, the outweigh the weaknesses and threats due to large market size,
market is expected to grow to reach 456,740MT (QAR4,804mn) upcoming projects pipeline in Qatar and opportunities for civil
in 2026. contractors to backward integrate.
Large market size means an opportunity52 for new players to
tap into 2,948MT worth of average incremental business every
year, from 2017 to 2026. This implies that subject to competitive
challenges, opportunities exist for two mid-sized players (1,800
MT p.a. capacity running at 80% utilization) to enter the market
every year.
52
Team Analysis
53
PEBSteel
200
30
175
154.0
25
150
Thousand MT
QAR mn
96.7
20 125
97.4 34
81.3 34
83.6 100
15 74.8 28
23 75
10 20
36.5 50
29.4 15
12 13
5 17.7 11
7.7 8.7 25
5.8 7
5
2 4
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pre-Engineered Buildings (Volume, 000's MT) Pre-Engineered Buildings (Value, QAR mn)
Source: Team Analysis, ITC Trademap, Primary Interviews
3.2.1.2. Market Size Segmentation by Products Chart 17. PEB Market Segmentation, 2015
Primary structures are the main load-bearing structures of PEBs 5% Decking Sheets
that account for 60% share of the market. The key application
areas of primary structures range from industrial, commercial, 60%
recreational and institutional segments. Secondary structures Primary Structure
that consist of purlin, girts, eave struts, etc., account for 35% (Main Frame)
share of the market, followed by decking sheets that account
for the balance 5% share.
Qatar PEB
Market Size
33,372 MT
35%
Secondary Structure
(CNZ Purlin Frames)
Source: Team Analysis, Primary Interviews
54
Team Analysis
Government’s Increased Focus on Economy Diversification SEZ 3: Al Karaana (which is Manateq’s largest project and is
Qatar’s Government has a strong focus on developing the expected to be launched in 2018). It is strategically located a
manufacturing sector, the downstream sector, as part of its goal halfway between Doha and Abu Sumra on the border of Saudi
of diversifying the economy that would enhance the private Arabia. Al Karaana would become the overland gateway to
sector’s contribution to GDP and would drive the demand for GCC markets.
PEBs in the country.
159.9 173.4
170.3 200
QAR mn
30
150
20 39.9 41.2 42.5
36.2 37.4 38.6
33.7 32.3 33.5 34.6 35.5 100
31.0
10 50
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Pre-Engineered Buildings (Volume, 000's MT) Pre-Engineered Buildings (Value, QAR mn)
Source: Team Analysis, ITC Trademap, Primary Interviews
55
Team Analysis
Chart 19. Qatar’s PEB Production Capacity and Utilization Chart 20. Qatar’s PEB Market Share of Key Players, 2015
50 100%
8% Other Imports
45 90%
40
80%
80%
35%
65% 60% BSI Steel
35 70%
Thousand MT
30 55% 60%
45%
27%
25 50% Other Domestic
35%
20 40% Qatar PEB
15
Market Size
30%
33,372 MT
10 20%
35 35 35 35 35 35
5 10%
0 0
2010 2011 2012 2013 2014 2015
6% Mabani 19%
Kirby Building
Capacity (MT) Utilization (%) 6% Zamil Steel Systems
Source: Team Analysis, Primary Interviews Source: Team Analysis, Primary Interviews
• PEBs Our primary research indicates that the raw material is procured
Al Maher from China, India, Saudi Arabia, Turkey and the UAE. Expensive
2012 • Pre-fabricated -
Contracting raw material significantly impacts the cost of domestically
buildings
produced finished goods.
• PEBs
Big • Structural High Operational Expenses: Our primary interviews indicate
Engineering 1996 steel works - that the operational costs are significantly higher in Qatar due
Works • Pre-fabricated to higher labor costs and rent as compared with the nations
buildings exporting to Qatar — Kuwait, the UAE, Saudi Arabia, India, China,
Turkey, etc. This adversely affects the price competitiveness of the
domestic production.
3.2.2.3. Business Model Analysis
Time to Market: According to industry players, procuring raw
The manufacturing of PEB requires access to raw materials,
material is time consuming, which leaves them with very little
such as steel plates, which are then fabricated according to
time to fabricate and deliver finished products to customers. Raw
the standard specifications. Design and detailing software
material inventory requirement increases since manufacturers
(e.g., MBS Software) is used that incorporates building codes,
either have to procure raw materials in advance that add to the
applicable to the design and manufacturing of PEBs.
inventory costs or they would have to purchase raw materials at
BSI Steel is the only organized player with a dedicated PEB current market rates, which may be higher than the quotations
manufacturing facility in Qatar. Prior to this, the market submitted for job works, adversely affecting their price
was mainly dependent on imports from neighboring GCC competitiveness.
countries, such as the UAE, Saudi Arabia and Kuwait, which
Number of Players: Due to the fragmented nature and the large
have the manufacturing base of leading PEB manufacturers.
number of players catering to the market though local production
as well as imports, the PEB market in Qatar is characterized by
56
Company Websites fierce competition and price sensitivity.
12,000 70
60
10,000
50
8,000 40.9 38.5
QAR mn
MT
12,772 40
6,000 30.7
22.4 25.1 30
23.0
17.6
4,000 16.7 14.9
14.2 6,341 20
5,754
8.4 4,442
2,000 3,502 3,608 3,820 4,071 10
2.1 3,120 2,671 2,996
1.3 1.9
1,839
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2.9 3.0
250
2.5
200
2.0
QAR mn
MT
150
280
1.5
100
1.0
50 0.2
0.3 0.5
0.1 11 40
0 25 0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
70% 70%
Turkey
60% 60%
50% 50%
40% 40%
Kuwait
30% 30%
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
The area graph shown above indicates that the share of top five countries consistently remained above 90% during 2010 to 2015.
Kuwait has been the leading exporter to Qatar but its share came down from 80.3% in 2012 to 58% in 2015. In the recent past,
countries such as the UAE, Turkey, China and India have increased their exports to Qatar.
Exports: The analysis of export data60 from 2010 to 2015 indicates that Belgium, UAE, Canada, Kuwait and Oman are the key
destinations of Qatar’s PEB exports.
90% 90%
Rest of the World
80% 80%
70% 70%
Oman
60% 60%
20% 20%
UAE
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
The small quantity of PEB exports has been to nearby countries, such as the UAE, Oman and Kuwait. Qatar did not export PEB
products in 2011, and exports to Belgium and Canada are likely to have been on account of the return of imported goods.
59, 60
ITC Trademap
25 23.0 5.8
60%
50%
% Share
19.6 4.1
20 50%
29% 15.2 3.8 38%
15 33% 13.2 40%
12.4 3.0
26% 26%
23% 10.5 2.7 30%
10 7.0 3.6 20% 20% 18% 20% 18%
5.3 3.5 20%
5 3.7 20%
1.5 1.8 2.2 4.4 10%
1.8 3.1
1.9 2.2 2.6 7.0 8.8 10.5 12.2 15.8 19.0 22.7 28.0 21.0
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
61
Team Analysis
60%
25
% Share
50%
20 38%
40%
15
23% 23% 23% 23% 23% 23% 23% 23% 23% 22% 30%
10 20%
5 10%
21.0 23.8 24.9 25.8 26.6 27.4 28.0 28.9 29.9 30.9 32.9
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2026F
Exports: The export forecast for PEBs indicates that exports would offer a minor opportunity. As per the forecast, less than 1% of
the domestic production (in quantity terms) is estimated to be exported. Primary interviews indicate that Qatar’s production is not
cost competitive and hence, PEB units do not consider exports an opportunity.
The exports are likely to range from 40.4MT in 2015 to 76.2MT in 202662.
15 32 33
30 31 8%
27 28 29
25 26 27
24 6%
10 21
4%
5
2%
0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
0 0%
2015e 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
80
60
65
65
65
65
65
65
65
65
65
65
40
42
41
40
Thousand MT
39
37
36
35
35
35
35
34
33
32
31
20
0
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
(1) (4)
(20)
(25) (24) (23)
(29) (28) (26)
(32) (30) (30)
(40) (33)
PEB Market Size (Total Demand, incl. imports) 000s MT Supply (Domesitc installed capacity)000s MT Demand Supply Gap
Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015, ITC Trademap
Comparing with domestic sales projection, PEB demand (net Figure 10: Cost Components of PEBs
of imports) is forecast to reach 42,485MT in 2026, thus leaving Raw material
a demand–supply gap of 22,515MT. Installation
20% 30% to 40%
3.2.5. Pricing Analysis
The key factors affecting product pricing are raw material costs
and fabrication costs. These collectively account for 70% to 80%
of the production costs64. Raw materials, such as steel sections
and plates, are not produced in Qatar and have to be imported
by domestic PEB manufacturers, as a result raw material prices
are on the higher side for local producers since they rely
entirely on imports. Steel prices are affected by global macro
level trends, thus affecting the selling price of finished goods Cost components
(PEBs). The key components of production costs are provided
in the table below. Profits and contingency are assumed at an
additional 10% to 15% and 5% to 10% over cost components,
respectively, to arrive at pricing of PEBs.
Price Forecast
Trends in the selling price of PEBs are affected by global prices
of steel. The average domestic prices and average import Fabrication
prices for PEBs in Qatar have been forecast considering the 40%
trends in the iron ore prices (2015 to 2026) forecast by the
World Bank65.
63
Team Analysis
64
Primary Interviews
65
Team Analysis
2,000
1,000
0
2014 2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
66
Qatar Construction Specifications (QCS) 2014
Pre-engineered Buildings
STRENGTHS OPPORTUNITIES
• Widespread use in application across warehousing, • Upcoming industrial, warehousing, rail projects and
factories, industrial and commercial sheds setting up of manufacturing facilities in the next
• Quick and efficient; since PEBs are mainly formed of 10 years (2016 to 2026)
standard sections and connections, design time is
significantly reduced; basic designs are used over a
long period of time
• Simple design, easy to construct and light weight; it
uses 30% less steel, hence is a quicker and cheaper
alternative than conventional steel structures
• Domestic players have been able to reduce the
country’s dependence on imports by substituting them
with domestically manufactured PEBs
SWOT
WEAKNESSES THREATS
• Standard building and design codes are used to • Low-priced imports adversely impacting the salability
create PEB structures leaving less room for product of domestic production
differentiation • Intense rivalry between fabricators threatening new
• Domestic manufacturers are unable to export due entrants
to the presence of well-established players in GCC • Highly price-sensitive market, with small unorganized
countries, such as Kuwait, UAE and Saudi Arabia, that players and importers, undercutting the large-sized
benefit from cheaper (8% to 15%) raw material prices organized players
• Dependence on imports for raw materials affecting
price competitiveness
Summary:
PEB saves time and is cost effective since it is mainly formed of standard sections and connections, and consumes less raw
materials apart from the fact that it is easy to install. Apart from its strengths, its weaknesses include difficulty in exporting
domestic production and in achieving product differentiation on parameters other than price. New industrial projects and
manufacturing facilities are the opportunity areas, while competitive rivalry and price-sensitive market are the threats.
THREAT OF
NEW ENTRY
High:
• PEB manufacturing is
neither capital intensive nor
technology intensive.
• Hence, the threat of entry
is low.
BARGAINING BARGAINING
COMPETITIVE RIVALRY
POWER – SUPPLIERS POWER – CONSUMERS
High: High: High:
• Raw material for • ompetitive rivalry is high
C • Large number of PEB
PEB manufacturing due to the presence of suppliers operating in the
(e.g., steel plates and several players operating region.
secondary sections) is not in the market.
• Very little scope for product
manufactured in Qatar, • Intense competitive differentiation on technical
hence manufacturers have rivalry ensures that price grounds further strengthens
to rely on imports. and relationship are key the bargaining power of
• Suppliers have high deciding factors in securing consumers.
bargaining power. a job order.
THREAT OF
SUBSTITUTION
Low:
• Steel PEBs offer optimum
strength at lower costs in
comparison to hot-rolled
steel sections.
• Other metals (i.e., aluminum)
are unlikely to substitute
steel PEBs due to high cost.
Customer Service
Thorough understanding of the clients’ requirements is crucial
for companies to gain the trust of its customers. PEB firms
Investment in Machinery need to constantly work along with their clients to provide
them with seamless solutions and gain a deep understanding
PEB firms could invest in modern machinery,
of their challenges and requirements.
experienced welders, designers and project
managers. This would enable them to
undertake significantly complex projects and
gain an edge over the competition.
3.4. Outlook
Qatar’s PEB market has witnessed a steady growth wherein Given the market size and the growth potential of this segment,
the demand has grown from 5,312MT (QAR29.4mn) in 2005 driven primarily by factory, warehousing and industrial projects,
to 33,732MT (QAR201.8mn) in 2015 indicating a growth of subject to competitive challenges, new entrepreneurs can
20.3% in volume and 21.2% in value terms. Establishment of a benefit from average incremental opportunities worth
domestic manufacturing facility in 2006 substantially reduced QAR15mn (1,148MT) per annum from 2017 to 2026. However,
Qatar’s dependence on PEB imports from 63% in 2006 to as the average incremental business per annum until 2026 is
about 38% share of the total market in 2015. This indicates that low for offering viable opportunities, entrepreneurs would have
import substitution was successfully achieved and hence, there to target related segments, such as structural steel fabrication
is opportunity for new domestic players to enter the market. and architectural steel fabrication, and focus on being cost
competitive to be able to substitute imports and gain market
In the medium to long-term, large-scale developments, such as
share from existing players.
the Qatar rail and metro, New Doha Port Development, SEZs
promoted by Manateq, FIFA 2022 stadia, industrial projects
and upcoming real estate projects, would drive the demand
for PEBs. On the back of strong demand drivers, the market is
expected to grow at a CAGR of 5.4% from QAR201.8mn in 2015
to an estimated QAR317.8mn in 2026.
Pertaining to the challenges, the market is likely to remain
competitive and price sensitive. Dependence on imports for
procurement of raw material and high operational expenses
(salaries, rents, etc.) as compared with other countries, such
as the UAE and Saudi Arabia, would limit export potential to
rare opportunities, i.e., less than 1% of domestic production.
Imports are likely to remain cheaper than domestic production
and further heighten the challenges.
1.6% 58.6%
P-FAB Greenhouses P-FAB labour camps
Pre-fabricated
buildings
market
QAR806mn
39.8%
P-FAB Pvt. Units
67
Team Analysis
Site office
Pre-fabricated
greenhouses
Pre-fabricated
Private Units
Mosque
Security cabin
500 500
339
291
QAR mn
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
300
QAR mn
300 250
533
200
200
338 343 347 352 356 360 150
317 309 316 325 332
100
100
50
0 0
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
91.5
100
Thousand sqm
150
QAR mn
80
231
100 196 60
174 28.3
36.6
29.9 26.5 127 40
24.3
50 17.0
77 70
5.2 7.6 8.6 56 55 20
30 32
24
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
35
60
30
Thousand sqm
50
QAR mn
25
40
68 20
66
30
15
8.8 9.0
20
10
4.5 4.3 4.8
10 2.3 3.0 2.5
1.1 1.9 5
0.0 0.4 0.8
10
4 6 4
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 35. Key Sources of Pre-fabricated Labor Accommodation Imports, 2010 to 2015
100% 100%
Rest of the World
South Korea
90% 90%
Turkey
80% 80%
70% 70%
Saudi Arabia
60% 60%
50% 50%
China
40% 40%
30% 30%
20% 20%
UAE
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
The area graph shown above indicates that the share of top five countries gradually increased from 89.5% in 2010 to 96.5% in 2015.
While the UAE has dominated the imports since 2010, in the recent years, that share of China and Turkey has increased and that
of Saudi Arabia has decreased.
Chart 36. Key Destinations of Pre-fabricated Labor Accommodation Exports, 2010 to 2015
100% 100%
Rest of the World
Kuwait
90% Iraq 90%
80% 80%
Saudi Arabia Oman
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
UAE
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
The analysis of export data indicates that 95% to 99% of Qatar’s exports have been to GCC countries, such as the UAE, Saudi Arabia,
Oman and Kuwait. In 2011, Qatar exported small quantities to Iraq. In the recent years, the UAE, Oman and Kuwait have been the
leading destinations for exports.
Chart 37. Qatar’s Pre-fabricated Labor Accommodation Imports Vs Domestic Sales, 2001 to 2015
600 100%
533
90%
81.3%
500
80%
Chart 38. Qatar’s Pre-fabricated Labor Accommodation Import Forecast, 2015 to 2026
600 100%
533
90%
500
80%
231 70%
400 360
347 352 356
338 343
Thousand sqm
% share
300 106 107 108 109 50%
43.3% 101 103 104
96 96 99
94
40%
30.4% 30.4% 30.4% 30.4% 30.4% 30.4% 30.4% 30.4% 30.4% 30.4% 30.4%
200
30%
302
231 235 239 242 245 248 251 20%
220 215 220 226
100
10%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The export forecast of pre-fabricated labor accommodation units indicates that exports may have a minor opportunity as
only 1.9% of the domestic production may be exported, subject to rare opportunities, e.g., Qatar-based manufacturer securing a
job order from projects in the UAE or the KSA. Exports are likely to range from 4,280sqm in 2016 to 4,864sqm in 2026.
9%
300
4.75 4.81 4.86
4.64 4.69 8%
4.49 4.56
4.28 4.39
250 4.18 4.26
7%
Thousand sqm
6%
200
% share
5%
150
4%
302 220 215 220 226 231 235 239 242 245 248 251
100 3%
2%
50 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9%
1%
1.1%
0 0%
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 40. Qatar’s Pre-fabricated Labor Accommodation Selling Prices Forecast, 2015 to 2026
1,600
1,373 1,406
1,310 1,341
1,400 1,249 1,279
1,192 1,220
1,129 1,161
1,200 1,074 1,100
1,000
QAR per sqm
800
801 820 840
746 764 782
600 694 712 729
642 657 674
400
200
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
275 300
250
244
226
222 250
200 213
Thousand sqm
171 200
QAR mn
150 155
124 150
88 209
100 77
58 163 100
48 135 135 138 140
38 117
30 110
50 92
78 84 50
64
54
35 44
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
Chart 43. Qatar’s Pre-fabricated Private Units Demand Forecast, 2015 to 2026
300 400
329.1 350
321.2 317.7
250 306.5
295.8
285.5
274.5 300
263.5
251.9
200 238.4
226.6 227.0 250
Thousand sqm
QAR mn
150 200
150
100 209
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
60 70
60
50 51.0 53.0
40.7
Thousand sqm
50
40 39.3
QAR mn
25.2 34.6 33.7 34.8 40
30 61 28.8
23.8 30
13.3 44
20 37
39 20
30 28 29
10 21 22 22
3.6 4.1 18 10
2.5 19
0 7 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exports: Analysis of historical export data indicates that exports have been highly irregular and small compared to the domestic
production. During 2001 and 2015, the annual exports averaged at 1,946.7sqm of pre-fabricated private units.
7 5.3 6
6
5
4.3
Thousand sqm
5
4
QAR mn
4
2.7 7.2 3
2.6 6.9
3
1.8
1.4 2
2 4.2 1.3
0.7 1.1
0.9
1 0.3 1
2.9 1.3 1.5 0.4
0.0 1.2 1.2 0.0
1.3
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 46. Key Sources of Pre-fabricated Private Units Imports, 2010 to 2015
100% 100%
50% 50%
40% 40%
30% 30%
UAE
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
The UAE was the dominant source of imports during 2010 to 2015. Its share in import market peaked at 81.8% in 2013. The share
of imports from India and China increased from 2013 to 2015.
Exports: The analysis of pre-fabricated private units exports amounting to 12,209sqm from 2010 to 2015 indicates that the KSA
(65%), the UAE (26%), Belgium (4%), Oman (2%) and Germany (0.5%) are the major destinations for exports.
Chart 47. Key Destinations of Pre-fabricated Private Units Exports, 2010 to 2015
100% 100%
Oman
Belgium Germany Rest of the World
90% 90%
80% 80%
70% 70%
60% 60%
UAE
50% 50%
40% 40%
30% 30%
20% 20%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Exports from Qatar have been limited and primarily focused on markets such as Saudi Arabia, the UAE and Oman. Some minor
quantity of exports was to Belgium and Oman during 2010 to 2012.
Chart 48. Qatar’s Pre-fabricated Private Units Imports Vs Domestic Sales, 2001 to 2015
% share
37
40%
100 29% 92 18
84 44
78
25% 30%
75 64
54 30 17%
44 61 17% 27%
35 19 14% 20%
50 7 21% 21% 19%
25 13% 10%
12% 12%
31 38 48 45 48 30 63 141 113 91 72 107 101 111 169
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
200 45%
39
175 40%
149 151 152 154
142 145 147 35%
150 136 135 139
133
Thousand sqm
36 37 37 38 30%
125 34 35 35 36
% share
33 32 33
25%
100
24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 20%
75 19% 15%
50 10%
169 103 100 102 105 108 110 111 113 114 115 117
25 5%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The export forecast of pre-fabricated private units indicates that exports may have a minor opportunity as only 0.9% of
the domestic production may be exported, subject to rare opportunities, e.g., Qatar-based manufacturer securing a job order
from projects in the KSA or the UAE. Exports are likely to range from 919sqm in 2016 to 1,045sqm in 2026.
Chart 50. Qatar’s Pre-fabricated Private Units Export Forecast, 2015 to 2026
200 10%
180 0.19 9%
160 8%
140 7%
1.03 1.05
Thousand sqm
% share
0.90
100 5%
80 4%
169 103 100 102 105 108 110 111 113 114 115 117
60 3%
40 2%
0.89% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9%
20 0.1% 1%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
1,500 1,612
1,537 1,574
1,466 1,501
1,399 1,432
1,331 1,366
1,231 1,261 1,294
1,000
500
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
14 45
11.9 40
12
35
Thousand sqm
10 30
34.9
QAR mn
8 7.0 25
6 5.2 20
15
4 3.4 3.3
2.4 2.4 2.7
1.4 2.0 12.4 2.1 5.5 12.6 10
2 3.9
1.7 3.4 2.5 2.9 10.0 5
0.2 0.3 0.4
3.1 5.9
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap
8.5 8.8
9 7.9 8.2 9
7.5
QAR mn
6.8 7.2
8 6.6 6.5 6.6 8
7 7
6 6
5 5
4 4
3 11.9 6.0 5.8 5.7 5.8 6.0 6.1 6.2 6.3 6.4 6.5 6.5 3
2 2
1 1
0 0
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
14 35
12.6
12 30
Thousand sqm
10 25
QAR mn
8 10.0 20
6 12.4 15
4 3.9 5.5 10
3.4 5.9 2.5
3.1 2.9
2 1.7 5
0.2 0.3 0.4
0 2 2 5 2 3 2 3 3 7 15 12 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
60% 60%
50% 50%
40% 40%
China
30% 30%
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Chinese greenhouses, followed by Jordanian imports, dominated the import market in Qatar during 2010 to 2015. In the recent
past, Italian products have made a headway into Qatar market with South Korea and the Netherlands having minor shares.
Chart 56. Qatar’s Pre-fabricated Greenhouse Imports Vs Domestic Sales, 2001 to 2015
16 120%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
14
100%
12
80%
Thousand sqm
10
% share
8 60%
15
6 12
40%
4
7
5 20%
2 3
3 3
2 2 2 2
1
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
10
80%
Thousand sqm
% share
60%
6 11.9
40%
4
6.0 5.8 6.0 6.1 6.2 6.3 6.4 6.5 6.5
5.7 5.8
2 20%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 58. Qatar’s Pre-fabricated Greenhouse Selling Prices Forecast, 2015 to 2026
1,600
1,400
1,361 1,394
1,200 1,299 1,330
1,239 1,268
1,182 1,210
1,120 1,152
1,000
QAR per sqm
1,065 1,091
800
600
400
200
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Import price
Source: Team Analysis, ITC Trademap
Chart 59. Qatar’s Pre-fabricated Buildings Market Structure and Capacity Utilization
1,000 100%
%
37.5% 35.7%
400 40%
30%
200 150 20%
66
10%
83.2% 0 0%
Large
Large Medium Small
Based on the insights from primary interviews with Qatar’s top-4 leading firms form the group of large-sized firms.
manufacturers of pre-fabricated buildings, these firms have an In terms of quantity, they collectively hold 83% share of the
installed capacity of 6,000sqm per annum or less, with less than sales by domestic players. In terms of products and services,
10 employees and capacity utilization of about 35.7%68. The the leading players have capabilities to manufacture all types
small companies mainly focus on the construction of site of pre-fabricated buildings but focus on large volume segments
offices, security cabins, mosques and majlis. Qatar has 11 such such as labor accommodations, site offices and security cabins.
firms that collectively control 5.0% share of the total sales by
domestic firms.
Medium-sized Firms
68
Primary Interviews
Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015
Installed capacity
Company Year of Establishment Products
(SQM/P.A)
Qatar Prefab (Al Hamadi Group) 1983 All types of pre-fabricated buildings 144,000
Al Wasit Cabins (GETC Group) 1993 All types of pre-fabricated buildings 144,000
Skycool Trading and Contracting 2012 All types of pre-fabricated buildings 40,000
The other players in the market include HydroTech Energy Qatar, Super Cabin, Al Attiyah Caravan Factory, Al Maher Construction
& Services, Al Muftah Interiors, Qatar Specialized Engineering & Construction, Steel Cabin Co and Ocean Cross Engineering.
908
908
908
908
908
908
908
908
908
908
908
800
742
600
514
508
502
400
496
490
483
474
Thousand sqm
464
452
451
442
200
(200) (166)
(400)
(417) (412) (406) (399) (393)
(455) (443) (433) (425)
(466) (457)
(600)
2015E 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
PreFAB Building Market Size (Total Demand, incl. imports) Thousand sqm
Supply (Installed capacity) Thousand sqm Demand Supply Gap
Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015, ITC Trademap
69
Team Analysis
Pre-fabricated Buildings
STRENGTHS OPPORTUNITIES
• Widespread use in labor accommodations, site offices, • Upcoming industrial, warehousing, rail projects and
security cabins, mosques, etc. setting up of manufacturing facilities in the next 10
• Pre-fabricated buildings can be constructed as years is likely to drive the demand for pre-fabricated
permanent as well as temporary structures, which labor accommodations and other private units in 2016
are portable and can be easily moved from various to 2026.
site locations.
• Quick and efficient as pre-fabricated buildings are
mainly made up of standard sections and connections,
significantly reducing design time; basic designs are
used over a long period of time.
• Simple design, easy to construct and lightweight; uses
less steel and no concrete, and hence is considered
a quicker and cheaper alternative to
conventional buildings.
SWOT
WEAKNESSES THREATS
• Domestic manufacturers are unable to export due to • Low-priced imports is adversely impacting the salability
the presence of well-established players in the GCC of domestic production.
countries, such as Kuwait, the UAE and the KSA, which • Intense rivalry between fabricators is threatening new
benefit from cheaper (8% to 15%) raw material prices. entrants.
• Highly price-sensitive market, with large-sized
organized players are dominating the market due to
their sheer scale, market access and capabilities.
• Dependence on imports for raw materials is affecting
price competitiveness.
Summary:
Pre-fabricated buildings save time and are cost effective since they are mainly made up of standard sections and
connections, and consumes less raw materials apart from being easy to transport, install and dismantle. Its weaknesses
include difficulty in exporting domestic production and in achieving product differentiation on parameters other than
price. New industrial projects and manufacturing facilities are the opportunity areas, while competitive rivalry and
price-sensitive market are the threats.
THREAT OF
NEW ENTRY
High:
• Pre-fabricated buildings
manufacturing is neither
capital intensive nor
technology intensive.
• Hence, the threat of entry
is low.
BARGAINING BARGAINING
COMPETITIVE RIVALRY
POWER – SUPPLIERS POWER – CONSUMERS
High: High: Medium:
• Raw materials for • ompetitive rivalry is
C • Limited number of
pre-fabricated buildings high due to the presence organized pre-fabricated
manufacturing (e.g., steel of several well-established buildings suppliers
sheets, slit coils) are not players operating in the dominate the business.
manufactured in Qatar; market.
• There is some scope for
hence, manufacturers have • Intense competitive rivalry product differentiation on
to rely on imports. ensures that price and technical grounds. The
• Suppliers have high relationship are the key buying power of consumers
bargaining power. deciding factors in securing is medium.
a job order.
THREAT OF
SUBSTITUTION
Low:
• Due to their light structure
and fast construction pace,
pre-fabricated buildings are
unlikely to be replaced by
other structures.
• Hence, the threat of
substitution is low.
Operational Efficiency
Efficiency in day-to-day operations
— fabrication, supervision and other
shop floor activities — can help in cost
optimization. Compliance with ISO
norms for Quality (ISO 9001), OHSAS
(ISO 18,001) and Environment (ISO
14001) could lead to standardization50
of procedures, bring in checks
and balances, and help achieve
compliance with regulatory norms.
This can be a key tool in achieving
efficiency in operations.
Technical Know-how
Technical knowledge of fabricators, workforce
and sales team are important factors to execute
highly complex projects with optimum efficiency51
and minimal errors. Technical know-how enables
fabricators to stay ahead of the competition as
well as deliver leading services to their customers.
Customer Service
A thorough understanding of clients’ requirements is crucial
for companies to gain the trust of their customers. Fabricators
need to constantly work along with their clients in order
Investment in Machinery to provide them with seamless solutions and gain a deep
understanding of their challenges and requirements.
Companies need to invest in modern
machinery, experienced welders, designers
and project managers. This would enable
them to undertake highly complex projects
and gain an edge over the competition.
4.3. Outlook
Qatar’s pre-fabricated buildings market has witnessed a The 2016 market size and growth rate of the pre-fabricated
steady growth, with the demand growing from 262,305sqm buildings segment till 2026 points to an average incremental
(QAR193mn) in 2005 to 753,514sqm (QAR806mn) in 2015, opportunity of QAR24.4mn (6,231sqm) per annum, for new
indicating a CAGR 11.1% in volume and 15.4% in value terms. players to tap into from 2017 to 2026, subject to competitive
challenges. As the average incremental business per annum
Large-scale real estate construction and infrastructure
till 2026 is low for offering viable opportunities71, entrepreneurs
development projects for FIFA 2022 World Cup and the Qatar
would have to focus on being cost competitive to be able to
National Vision 2030 are expected to provide a boost to pre-
compete and gain market share from established players in the
fabricated products, such as labor accommodations, security
market.
cabins and site offices.
In the medium to long term, large-scale developments, such as
the Qatar rail and metro, New Doha Port Development, SEZs
promoted by Manateq, FIFA 2022 stadium, industrial projects
and upcoming real estate projects, would drive the demand
for pre-fabricated buildings. On the back of the demand
drivers, the market is expected to grow at a CAGR of 3.8% from
QAR539mn in 2016 to an estimated QAR782mn in 2026.
Pertaining to the challenges, the market is likely to remain
competitive and price sensitive. Dependence on imports for
procurement of raw materials and higher operational expenses
(salaries, rents, etc.) than in other countries, such as the UAE
and the KSA, would limit export potential to rare opportunities,
i.e., less than 1% of domestic production. Imports are likely to
remain cheaper than domestic production and further heighten
the challenges. Domestic players have an upper hand in terms
of market knowledge, access to projects, support of their well-
established parent companies and quicker turnaround time
than importers.
71
Team Analysis
9.7%
38.5% Architectural
Decorative doors
Grill and Steel Fabrication
fencing Market 4.9%
Steel flush doors
QAR961mn
5.5%
26.3% Rolling Shutter
Staircase railing
72,73
Team Analysis
90 90
QAR mn
80 72 72 71
64 75
70
60 117 60
45
50 38 45
40 29 79 73 74
23 69 70
30 17 55 60 54 30
13 42 49
20 36
30 15
10 19 24
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
1% Commercial 4% Industrial
1% Public buildings 2%
Others
6%
Multi-storey residential
Entrance Gate
Market
116,836 sqm
86%
Villas
74,75
Team Analysis
130 150
145 134
120 129
125 135
110 121
116
112 120
100 107
102
90 97 105
93 93
Thousand sqm
80 90
QAR mn
70
75
60 117
50 60
40 75 77 78 79 80 81 82 45
72 70 72 74
30
30
20
10 15
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
50 60
45
48
45 45 50
40 44
40
35 38
36 40
Thousand sqm
30
30
QAR mn
25 47 30
46
20
18
14 31 32 20
15 29 28
10 22 24
10
5 10
3 4 17 13
5 2 9
3 3 4 3
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
76
Team Analysis
0.50
QAR mn
0.38
0.60 0.40
0.32
0.30
0.40 0.97 0.15
0.63 0.20
0.13
0.20 0.05
0.03 0.05 0.04 0.27 0.06 0.10
0.03 0.01 0.25
0.00 0.00 0.18 0.13
3 0.20 0.17
0.00 0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 67. Qatar’s Entrance Gates Imports Vs Domestic Sales, 2001 to 2015
140 100%
117 90%
120
80%
69%
100 70%
59% 46
Thousand sqm
79 52% 60%
73 74
% share
80 69 70
22 60 50%
55 54 29 39%
60 24 28
49 40%
42 13 41%
36 35% 47 31 38% 30%
40 30 9 32
17% 3 17 33%
24 28%
4 20%
19 3 24%
20
3 14% 15% 10%
16 20 26 33 33 32 42 56 22 29 22 41 49 46 71
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
77, 78
Team Analysis
46
90 78 79 80 81 82 60%
% share
74 75 77
80 72 70 72
29 29 29 30 30 50%
70 27 28 28
27 26 26
60 40%
50 39.3% 36.8% 36.8% 36.8% 36.8% 36.8% 36.8% 36.8% 36.8% 36.8% 36.8% 36.8% 30%
40
30 71 20%
46 45 45 47 48 48 49 50 50 51 52
20
10%
10
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The export forecast81 of entrance gates indicates that exports may have a minor opportunity as only 0.58% domestic
production may be exported, subject to rare opportunities, e.g., a Qatari customer choosing to build a villa in the KSA and
sourcing82 from Qatar-based fabricators. Exports are likely to range from 264sqm in 2016 to 298sqm in 2026.
60 3.0%
% share
Chart 70. Qatar’s Entrance Gates Selling Prices Forecast, 2015 to 2026
2,000
1,748 1,789
1,667 1,707
1,800 1,628
1,553 1,590
1,478 1,517
1,600 1,437
1,366 1,400
1,400
QAR per sqm
69 75
60 64
61 60
QAR mn
50 49 49 60
46
40 39 45
30 27 56
23 30
20 18
15 38 34 35 36
8 11 33 29
24 28 25 15
10 18 21
14
9 12
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
99.56%
Villas
Source: Team Analysis, MDPS Annual Bulletin of Building Permits
and Competed Building Statistics, Primary Interviews
85, 86
Team Analysis
60
QAR mn
30 50
56
40
20 37 38 38 39 39 39
35 34 35 36 36 30
20
10
10
0 0
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
19.7
15
20
QAR mn
10 11.9 21 21 15
9.3
14 14 13 10
6.7 13
5 10 11
3.2 2.5 8 5
1.4 1.8 6
4
3 2 1
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exports: The analysis of historical export88 data indicates that exports have been very irregular and very small as compared to the
domestic production. During 2001 and 2015, annual exports averaged at 93sqm of decorative doors.
87, 88
ITC Trademap
0.30 0.30
0.25
QAR mn
0.25 0.21 0.25
0.20 0.20
0.15 0.10 0.15
0.43 0.28
0.08
0.10 0.10
0.02 0.03 0.04 0.02 0.12 0.04
0.05 0.02 0.01 0.11 0.05
0.08 0.06
0.00 0.09 0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 76. Qatar’s Decorative Doors Imports Vs Domestic Sales, 2001 to 2015
60 56 100
90
50
80
21
65.4%
38 70
40 57.0% 35 36
Thousand sqm
34 60
33
% share
10 29
30 28 11 50
25 13
24 13
21 6 47.8% 40
18 8 21
20 4 14
14 14 38.3% 35.4% 37.0% 30
12 32.2% 30.5%
9 20
10 1 7.8% 26.4%
21.6%
16.1% 20.0% 10
12.8% 14.0%
8 16 17 16 22 28 11 15 11 21 24 23 35
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
89,90
ITC Trademap
35 34 35 60
% share
13 13 13 13
12 13 13
30 12 12 12 50
12
40
20
37.0% 30
34.3% 34.3% 34.3%
20
10
35 23 22 23 23 24 24 25 25 25 26 26 10
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The export forecast of decorative doors indicates that exports may have a minor opportunity as only 0.52% domestic
production may be exported, subject to rare opportunities, e.g., Qatari customer choosing to build a villa in the KSA and sourcing
from Qatar-based fabricators92. Exports are likely to range from 118sqm in 2016 to 133sqm in 2026.
45 4.5%
40 0.04 4.0%
35 3.5%
Thousand sqm
20 2.0%
35 23 22 23 23 24 24 25 25 25 26 26
15 1.5%
10 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 1.0%
5 0.1% 0.5%
0 0.0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
91
Team Analysis
92
Primary Interviews
Chart 79. Qatar’s Decorative Doors Selling Prices Forecast, 2015 to 2026
2,301
2,400
2,143 2,194 2,247
2,044 2,093
2,200 1,997
1,900 1,950
2,000 1,800 1,848
1,770
1,800 1,952 1,999
1,862 1,907
1,600 1,776 1,819
1,694 1,735
QAR per sqm
1,606 1,651
1,400 1,527 1,564
1,200
1,000
800
600
400
200
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
93
Primary Interviews
30
40
QAR mn
24.5
35 25
30
20
25 53
12.5 13.3 15
20 12.1
37
9.1 34 32 33
15 7.5 31 31 10
5.9 25
10 4.4 18
16 13 5
5 11 13
8 10
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
5.1.3.1.2. Market Size Segmentation by Products Chart 81. Steel Flush Doors Market Segmentation, 2015
Commercial buildings (44%) followed by multi-story residential
buildings (35%) are the leading segments for steel flush
5% 35%
Others Multi-storey residential
doors94. Public buildings (9%), industrial facilities (7%) and other
buildings (5%) have a minor share of the market.
7%
Primary interviews with architectural steel fabrication units Industrial
indicate that 75% of the demand (in sqm) is for fire-rated doors,
while the rest is for non-fire-rated doors.
Steel Flush
5.1.3.1.3. Demand Drivers Doors Market
Demand for steel flush doors is driven by requirements from 52,986 sqm
multi-story residential buildings, commercial buildings, public
buildings and a few industrial developments. Civil contractors 44%
Commercial
undertaking construction contracts comprise the customer
segment. Architects and interior designers who design 9%
buildings are the key influencers. Public buildings
94
Team Analysis
30
40
QAR mn
35 25
30
20
25 53
20 15
33 34 34 35 35 36 36
15 32 31 32 32
10
10
5
5
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
15
20
QAR mn
11.9 15
21 21
10
9.3
14 14 10
6.7 13 13
5 10 11
3.2 2.5 8 5
1.4 1.8 6
4
2 1
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
95
ITC Trademap
0.70 0.40
0.32 0.35
0.60
Thousand sqm
0.25 0.30
QAR mn
0.50
0.21 0.25
0.40
0.20
0.30 0.83 0.10
0.54 0.15
0.02 0.08
0.20 0.02 0.04 0.10
0.03 0.04 0.01 0.23
0.10 0.17 0.02 0.14 0.22 0.05
0.16 0.11
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 85. Qatar’s Steel Flush Doors Imports Vs Domestic Sales, 2001 to 2015
70 120%
100.0% 100.0%
60
88.1% 89.7% 53 100%
79.3% 80.7%
50 74.5% 74.6%
80%
64.2%
Thousand sqm
40 37
% share
34 33
51.0% 31 31 32 40 60%
30 25
36.0% 35.5% 53.0%
29.5% 19 21 40%
18 24
20 16 25
13 13 34 27
10 11
8 8 25 20%
10 15
3 4 20.8% 17
3 11 11 13
7 7 10 8 6 8
5 4 2 3
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
96, 97
ITC Trademap
Chart 86. Qatar’s Steel Flush Doors Import Forecast, 2015 to 2026
70 100%
90%
60
53 74.4% 74.4% 74.4%
80%
50 70%
Thousand sqm
60%
% share
40 34 35 35 36 36
39.5 32 33 34
32 31 32 50%
30
40%
25.1 25.5 25.9 26.2 26.5 26.7
20 23.6 23.1 23.5 24.1 24.7 30%
20%
10
13.4 10%
8.1 7.9 8.1 8.3 8.5 8.7 8.8 8.9 9.0 9.1 9.2
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The export forecast of steel flush doors indicates that exports may have a minor opportunity as only 2.6% domestic
production may be exported99. Exports are most likely to be limited to rare opportunities, e.g., Qatari civil contractors winning
international projects and planning to source from Qatar-based fabricators. Exports are likely to range from 209sqm in 2016 to
236sqm in 2026.
Chart 87. Qatar’s Steel Flush Doors Export Forecast, 2015 to 2026
15 30%
14 0.07
13
25%
12
11
10 0.23 0.23 0.23 0.24 20%
0.22 0.23
Thousand sqm
8
15%
7 13.4
6
5 9.1 9.2 10%
8.3 8.5 8.7 8.8 8.9 9.0
4 8.1 7.9 8.1
3
2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 5%
2
1 0.5%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 88. Qatar’s Steel Flush Doors Selling Prices Forecast, 2015 to 2026
1,800
1,000
1,017 1,042
970 993
800 926 948
883 904
837 860
796 815
600
400
200
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
100
Primary Interviews
60 33
35
QAR mn
50 27 30
40 85 25
20
30 63 59
13
12 10 49 51 52 15
10 46
20 6 7 8 41
10
10 20 21 23
17 14 5
15 17
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
5.1.4.1.2. Market Size Segmentation by Products Chart 90. Rolling Shutters Market Segmentation, 2015
Commercial development (shops and retail units) is the largest
segment accounting for 83% of the demand followed by
17% 83%
Industrial Commercial
industrial units at 17%101.
101,102
Team Analysis
80 90%
70 80%
70%
60
Thousand sqm
52 60%
QAR mn
50
45 46
42 43 50%
39 40
40 36 37
32 32 34 40%
30
30%
20
85 51 50 50 52 53 54 55 56 56 57 57 20%
10 10%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
90 45
80 40
35.1
32.9 32.4
70 31.7 35
28.9
Thousand sqm
60 27.3 30
26.2
QAR mn
50 22.0 25
40 20
13.2 65 62
30 10.4 15
20 7.4 42 43 39 10
38
3.6 31 32
2.0 2.8 23
10 1.5 18 5
13
5 5 6 4
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exports: The analysis of historical export data indicates that exports have been very irregular and very small as compared to the
domestic production. During 2001 and 2015, annual exports averaged at 282sqm of rolling shutters.
103
Primary Interviews
0.50
1.20 0.50
1.00
0.35 0.40
Thousand sqm
0.80
QAR mn
0.28
0.30
0.23
0.60
0.20
0.40 1.31 0.11 0.85
0.09
0.20 0.05 0.10
0.04 0.04 0.01 0.03 0.35 0.37
0.02 0.02
0.25 0.17
0.00 0.27 0.23 0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 94. Qatar’s Rolling Shutters Imports Vs Domestic Sales, 2001 to 2015
100 120%
90 100% 100% 100% 100%
94% 100%
80
80%
70 74% 74% 80%
Thousand sqm
60 63% % share
62
50 59% 49% 60%
40
35% 31 32
31% 38 40%
30 27% 59 39
21% 43
20 41
13 20%
5 5 6
10 23
14
10 12 11 16 9 32 3 10 19 14 22
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
60 60%
% share
62
50 50%
40 40%
40 41 41 42 42 43
38 37 38 39 40
30 30%
20 20%
10 15 15 10%
13 13 13 13 14 14 14 14 14
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The export forecast of rolling shutters indicates that exports may have a minor opportunity as only 2.6% domestic
production may be exported. Exports are most likely to be limited to rare opportunities, e.g., Qatari civil contractors winning
international projects and planning to source103 from Qatar-based fabricators. Exports are likely to range from 339sqm in 2016 to
383sqm in 2026.
18
% share
Chart 97. Qatar’s Rolling Shutters Fabrication Selling Prices Forecast, 2015 to 2026
1,200
999 1,022
953 975
1,000 909 930
867 887
821 845
781 800
800
QAR per sqm
719 736
600 686 702
654 670
624 639
591 608
563 576
400
200
0
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 98. Key Sources of Imports (All Types of Steel Doors), 2010 to 2015
100% 100%
80% 80%
USA Egypt
70% 70%
60% 60%
Saudi Arabia
50% 50%
30% 30%
20% 20%
UAE
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Chart 99. Key Destinations of Exports (All Types of Steel Doors), 2010 to 2015
100% 100%
China
90% Rest of the World Turkey 90%
70% 70%
60% 60%
50% 50%
40% 40%
Saudi Arabia Kuwait
30% 30%
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
The small volume of exports from Qatar from 2010 to 2015 were to nearby countries, such as Saudi Arabia, Kuwait and the UAE.
Exports to Turkey reported in 2015 are likely to be on account of the return of imported goods.
220 220
200 176 165 170 200
180 180
QAR mn
160 143 160
117 126 303
140 111 140
120 120
87 89
100 205 190 100
65 177 181 187
80 80
47 129 138 152 143
60 36 60
27
40 23 110 40
20 92 20
60 75
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's linear meter) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
0.5% 0.6% Others the development of new real estate projects that are either
planned or underway. The market size is estimated to have
Public buildings reduced by 40.0% from 302,996 linear meter in 2015 to 185,661
13.5% linear meter in 2016.
Multi-storey Going forward, the staircase railing market125 is expected to
residential
Staircase 81.9% grow from 185,661 linear meter in 2016 to an estimated 209,727
Handrail Market Villas linear meter in 2026, registering a CAGR of 1.2%. In value terms,
302,996 the market would grow at a CAGR of 3.7% from QAR160mn in
linear meter 2016 to reach QAR231mn in 2026.
QAR mn
190 160
170 303 140
150 120
130 100
197 201 203 206 208 210
110 186 181 184 190 194 80
90 60
70 40
50 20
30 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's linear meter) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
24.7
50 25
QAR mn
19.1
40 20
15.0 15.5 70
30 13.2 15
55
9.5 9.4 50
20 10
4.0 5.3
2.5 23 24
10 1.6 16 18 5
13 15 12
5 8
4
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
3.0 0.8
QAR mn
2.5
0.6
2.0 3.89
0.36
1.5 0.4
0.26 0.26
1.0 0.10
0.10 0.10 0.2
0.5 0.08 1.18 0.08
0.02 0.02 0.0
0.0 0.49 0.60
0.0 0.74 0.68 0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
80% 80%
70% 70%
40% 40%
Germany
30% 30%
20% 20%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Products from the UAE accounted for over 90% of imports into Qatar in 2010. However, its share fell steadily to reach 39% in 2015.
German, Chinese and Turkish products saw an increase in their share during 2013 to 2015. From 2012 to 2015, the share of the rest
of the world in imports into Qatar increased, which indicates that the sources of imports diversified during this period.
80% 80%
70% 70%
60% 60%
30% 30%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Qatar’s exports quantity had been small and focused on countries such as the UAE, Saudi Arabia and Kuwait during 2011 to 2013.
Exports to Germany are likely to be the return of imported goods as a sizable quantity was imported from Germany in 2015.
Chart 107. Qatar’s Staircase Railings Imports Vs Domestic Sales, 2001 to 2015
325 100%
300 90%
275 50
80%
250
70%
Thousand linear meter
225
200 13 60%
4 12 24
% share
175 46%
50%
150 55
23 15 253 40%
125 8 70 30%
100 18 121 115 192 30%
5 172 175 166
2 16 93
75 2 75 16% 16%
70 16% 128 126 13% 20%
50 57 6% 6% 6%
47 7% 18% 82
25 5% 4% 2% 10%
10%
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
225 70%
200 30 60%
29 29 30 30
29
% share
175 27 27 28
26 27
50%
150
125 253 40%
100 30%
166 169 172 174 176 178 179
75 159 155 158 162
20%
50
25 16.4% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 10%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The ten-year export forecast of steel staircase railings indicates that exports may have a minor opportunity as only 0.44%
domestic production may be exported. Exports are most likely to be limited to rare opportunities, e.g., Qatari civil contractors
winning international projects and planning to source from Qatar-based fabricators, or a Qatari customer choosing to build a villa
in the KSA and procuring from Qatar-based fabricators. Exports are likely to range from 696 linear meter in 2016 to 786 linear
meter in 2026.
225
20%
200 0.75 0.76 0.77 0.78 0.79
0.71 0.73 0.74
0.70 0.69
% share
175 0.68
15%
150
125 253
10%
100 178 179
162 166 169 172 174 176
75 159 155 158
50 5%
25 0.3% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 110. Qatar’s Staircase Railings Selling Prices Forecast, 2015 to 2026
1,400
1,123 1,150
1,072 1,097
1,200 1,047
998 1,022
950 975
900 924
1,000 878
QAR per linear metre
800
779 797
743 761
709 726
600 676 692
640 659
609 624
400
200
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
162, 163
Primary Interviews
164
WEO
700
QAR mn
600 174 166 177 200
127
500 974
114 150
400 110
91 739 682 694
300 648 100
64 563 516
45 454 503
200 28 660
20 392 50
100
279 330
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 113. Qatar’s Grills and Fencing Demand Forecast, 2015 to 2026
1,200 500
1,100 450
1,000 370
400
900 358 370
334 346
322 350
800 309
297
Thousand sqm
600 250
500 200
974
400
707 720 732 741 750 759 765 150
677 661 673 692
300
100
200
100 50
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
500 100
85
Thousand sqm
72 75
400 80
QAR mn
300 49 50 580 50 60
42 492 42
20 28 34
200 19 33 40
17 330 336
Exports: Analysis of historical export data indicates that exports have been highly irregular and small as compared to the domestic
production. Across 2001 and 2015, the annual exports averaged at 5,933sqm of grills and fencing.
4.0
Thousand sqm
15 3.2
QAR mn
3.0
23 2.1
10
16 2.0
15
13 1.1
5 10
0.5 1.0
0.3 0.2 0.4 0.2
0.0 4 0.2
1 2
0 0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 116. Key Sources of Grills and Fencing Imports, 2010 to 2015
100% 100%
Rest of the World
90% 90%
Bahrain UK
80% 80%
60% 60%
China
50% 50%
40% 40%
30% 30%
UAE
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
From 2010 to 2015, the UAE was a dominant source of imports; however, its share decreased from 84.5% in 2012 to 38.1%
in 2015. During this period, the share of Chain and Saudi Arabia in imports into Qatar increased gradually to reach 29.9%
and 15.3%, respectively.
Exports: The analysis of grills and fencing total exports from Qatar, during the period 2010 to 2015, amounting to 2,852MT
indicates that Kuwait (43%), the KSA (24%) and the UAE (11%) are the major destinations for exports.
Chart 117. Key Destinations of Grills and Fencing Exports, 2010 to 2015
100% 100%
Rest of the World
90% Yemen 90%
Oman
80% 80%
60% 60%
40% 40%
30% 30%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Chart 118. Qatar’s Grills and Fencing Imports Vs Domestic Sales, 2001 to 2015
1,200 120%
96%
1,000 100%
88%
82% 114
76%
800 69% 80%
Thousand sqm
66%
% share
336
55% 130
600 204 60%
45% 45%
40%
35% 134
400 492 30% 40%
203 227 26% 580
330
116 217 19%
200 194 12% 20%
182
171
85 213 175 251 172 404 155 336 382 80 478 563 860
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
% share
600 163 167
160 156 159
50%
500
40%
400
23.6% 23.6% 23.6% 23.6% 23.6% 23.6% 23.6% 23.6% 23.6% 23.6% 23.6% 30%
300
200 11.7% 20%
100 10%
860 517 505 514 528 540 550 559 566 573 580 584
0 0%
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The ten-year export forecast of grills and fencing indicates that exports may have a minor opportunity as only 2.1% of
the domestic production may be exported. Exports are most likely to be limited to rare opportunities, e.g., Qatari civil contractors
winning international projects and planning to source from Qatar-based fabricators. Exports are likely to range from 10,725sqm
in 2016 to 12,115sqm in 2026.
Chart 120. Qatar’s Grills and Fencing Export Forecast, 2015 to 2026
1,200 30%
1,100
1,000 25%
900 2
800 20%
Thousand sqm
700
12
% share
12 12 12 12
600 11 11 11
11 10 11 15%
860
500
400 528 540 550 559 566 573 580 584 10%
517 505 514
300
200 5%
2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1%
100 0.2%
0 0%
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 121. Qatar’s Grills and Fencing Selling Prices Forecast, 2015 to 2026
600
499 511
476 488
500 454 465
433 444
411 422
390 400
400
QAR per sqm
384 393
366 375
349 358
300 333 341
316 325
300 308
200
100
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Based on insights from primary interviews, these firms have Qatar is home to 263 medium-sized firms, each having an
capacities not greater than 380MT per annum. These units have average capacity greater than 380MT per annum and less
less than 10 employees and 70% of their capacities focus on than 12,000MT per annum of steel fabrication per month. The
architectural steel fabrication works comprising products such medium-sized firms collectively have 70% share of the market
as entrance gates, decorative doors, steel staircase railing and in volume terms. In case of medium-sized firms, on average,
grill fencing. Qatar has 194 such firms that collectively control 17.5% of the capacity is dedicated to architectural steel
20% share of the market. fabrication works.
Large-sized Firms
MT
150,000 50%
40%
100,000 82,845
30%
20%
50,000
15,043 20,370
10%
70.0% 0 0%
Medium
Large Medium Small
In terms of products and services, the leading players have well-developed capabilities and focus on structural steel fabricating
works. Architectural steel fabrication products such as doors, railings, grills and fencing are ancillary products to the structural
steel fabrication job orders taken by the large firms.
With regards to the architectural steel fabrication products, small-sized firms have an average capacity utilization rate of 74.1%,
followed by medium-sized firms at 63.8%, with large firms lagging behind at 50.2%. The overall industry capacity utilization rate
is 63.8%.
Average % share of capacity used for architectural works % 7.5% 17.5% 70%
Architectural fabrication average capacity p.a. per player MT 1,504 315 105
Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015
Qatar Metal
2007 • Steel doors (fire and non-fire rated) 10,000sqm per month
Industries, UAE
• Entrance gates
• Decorative doors
Hadadco 2005 • Staircase 3,000sqm per month
• Handrail, grills and fencing
• Other decorative parts.
• Railing
• Doors
Style engineering 1996 1,000sqm per month
• Tanks
• Pipeline and mechanical engine works
• Entrance gates
• Decorative doors
800 to 1,000sqm
Drabzin 1991 • Staircase
per month
• Handrail, grills and fencing
• Other decorative parts
• Entrance gates
• Decorative doors
Jersey decoration 1991 • Staircase NA
• Handrail, grills and fencing
• Other decorative parts
104
Primary Interviews, company websites
Other players such as Al Einkiaz, Gulf Steel and Steel Master High Operational Expenses: Our primary interviews indicate
focus on both architectural and structural works. Some players that operational costs are significantly higher in Qatar than
such as JAFCO and Qore Aluclad focus on architectural in nations exporting to Qatar, i.e., China, India, the UAE,
steel fabrication works and architectural aluminum Turkey, etc. This adversely affects the price competitiveness of
fabrication works. domestic production. Operational expenses are affected by
high rents for accommodation, high salaries and high rents for
Given the low-entry barriers, widespread application of steel non-residential spaces that increases the fixed expenses.
and a large market size, architectural steel fabrication has been
an attractive sector for Qatari entrepreneurs. With several firms Number of Players: Due to the fragmented nature of the market
operating in the market and each targeting the same project, and the large number of players (467 players), steel fabrication
competition to win contracts is intense. market in Qatar is characterized by fierce competition and
price sensitivity.
5.1.7.1.4. Domestic Production Competitiveness
Access to inexpensive raw materials and a large market 5.1.8. Demand–Supply Analysis
underlines the profitability and feasibility of any industrial Considering the 467 firms operating in the market, the installed
venture. The key factors that influence the competitiveness capacity is 118,258MT per annum. This does not include
of domestic production of architectural steel fabrication units assumptions for new players having plans to enter the market
include raw material, labor, market size and the impact of that have not been announced so far. Comparing with market
competition. size estimates (including imports projection), the demand–
supply gap points toward an oversupply of 53,295MT in 2020
to 47,993MT in 2026.
Chart 123. Qatar’s Architectural Steel Fabrication Demand-Supply Analysis, 2014 to 2026
140
120
118
118
118
118
118
118
118
118
118
118
118
118
100
94
80
70
60
70
69
68
67
66
65
64
Thousand MT
62
62
61
40
20
(20)
(24)
(40)
Architectural Steel Fabrication Market Size (Total Demand, incl. imports) 000s MT
Supply (Domestic installed capacity) 000s MT Demand Supply Gap
Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015, ITC Trademap
105
QCS 2014
STRENGTHS OPPORTUNITIES
• Addressable market199 of QAR629mn in 2016 growing • Upcoming real estate projects across asset classes
at a CAGR of 3.7% in value terms, to reach QAR909mn such as villas, multi-story buildings and commercial
in 2026. buildings.
• Wide range of products such as entrance gate, • Opportunity to use creative and architectural aspects
decorative doors, staircase railing, grills and fencing. for product differentiation.
• Domestic players have been able to acquire a majority • Opportunity to differentiate from competitor by
share in products such as entrance gates, decorative focusing on a combination of products.
doors, staircase handrails, grills and fences. • Fragmented customer base (in villa segment) would
restrict the growth of imports beyond current levels.
SWOT
WEAKNESSES THREATS
• In case of products such as rolling shutters and steel flush • Low-priced imports adversely impacting the salability of
doors, nearly 80% of the market is served by imports200. domestic production in times of economic slowdown.
• Dependence on imports for raw materials affecting • Intense rivalry between fabricators threatening
price competitiveness. new entrants
• Highly price-sensitive market
Summary:
In the medium to long term, the strengths and the opportunities outweigh the weaknesses and threats due to a large
market size, upcoming projects pipeline in Qatar, fragmented customer base (villa projects) and the localized nature
of the product.
THREAT OF
NEW ENTRY
High:
• Architectural steel
fabrication is neither
capital-intensive nor
technology-intensive.
• Creative designs for
architectural products,
can be achieved by hiring.
suitable staff. Thus, the
threat of new entry is high.
BARGAINING BARGAINING
COMPETITIVE RIVALRY
POWER – SUPPLIERS POWER – CONSUMERS
High: High: Medium:
• Raw materials for • Architectural steel • Despite a significant
architectural steel fabrication market is highly number of fabricators
fabrication (e.g., sheets, competitive with several operating in the business,
plates, rods) are not players operating in the the bargaining power of
manufactured in Qatar; market. consumers is medium as
hence, manufacturers have • I ntense competitive rivalry there is scope for product
to rely on imports. ensures that price and differentiation based on
relationship are the key design and creative inputs.
• Suppliers have high
bargaining power. deciding factors in securing
a job order.
THREAT OF
SUBSTITUTION
Low:
• The boundaries within
which wood, steel, glass
and aluminum can be used
architectural products
are well set. Hence, it is
unlikely for architectural
steel fabrication products
to be substituted by other
materials.
Operational Efficiency
Efficiency in day-to-day operations such
as fabrication, supervision and other shop
floor activities can help in cost optimization. Technical Know-how
Compliance with ISO norms for Quality (ISO
Technical knowledge of fabricators, workforce
9001), OHSAS (ISO 18,001) and Environment
and sales team is important to execute highly
(ISO 14001) would lead to standardization of
complex projects with optimum efficiency and
procedures, put in place a system of checks
minimal errors. It enables fabricators to stay
and balances, and help achieve compliance
ahead of the competition as well as deliver
with regulatory norms. This can be a key
world-class services to their customers.
tool in achieving efficiency in operations.
Customer Service
Thorough understanding of the clients’ Investment in Machinery
requirements is crucial in gaining the trust of
the customers. In case of the villa segment, Companies should invest in modern
the fabricator is in direct contact with the machinery, experienced welders, designers
end-user, i.e., the residents of the villa. A and project managers. This would enable
delighted end-user can help spread word- them to deliver demanding projects and
of-mouth goodwill, which can prove to be gain an edge over the competition.
highly beneficial in a competitive market.
Medium Low
5.3. Outlook
Qatar’s growing real estate sector offers opportunities for new In terms of challenges, the market is likely to remain significantly
units in the architectural steel fabrication market in products competitive and price sensitive. Heavy dependence on
such as entrance gates, decorative doors, staircase handrails, imports for procurement of raw materials and high operational
grills and fencing. expenses (salaries, rent, etc.) as compared to those in other
countries such as the UAE and the KSA would limit export
The architectural steel fabrication formed a sizable portion potential to rare opportunities107. Imports are likely to remain
(12.4%) of the structural metal products sector in 2015. In terms cheaper as compared to domestic production and further
of domestic production value architectural steel fabrication heighten the challenges.
has 11.7% share of the overall structural metal products sector.
Villas would account for 45% of Qatar’s upcoming real estate In the medium to long term, the strengths and the opportunities
development of 78.9mn sqm over 2016 and 2026. Villas are outweigh the weaknesses and threats due to large market size,
likely to be a prime driver for most architectural products. On upcoming projects pipeline in Qatar, fragmented customer
the back of strong demand drivers, the market is expected base (villa projects) and the localized nature of the product.
to grow at a CAGR of 3.7% from QAR629mn in 2016 to an
estimated QAR909mn in 2026106
The given market size and a moderate pace of growth offer an
opportunity for new players to tap into 806MT worth of average
incremental business every year from 2017 to 2026, subject to
competitive challenges. Owing to this, opportunities exist for
one medium-sized player (1,800MT per annum running at 80%
utilization) dedicated to architectural steel fabrication works, to
enter the market every two years.
106,107
Team Analysis
1.7% 16.5%
Aluminum railing Aluminum sheet
and fencing cladding works
4.6%
Aluminum
doors,
windows &
Architectural
partitions
Aluminum
Fabrication
market
QAR1,656mn
77.2%
Aluminum and
Glass works
Chart 125. Qatar’s Aluminum and Glass Works Demand, 2001 to 2015
3,000 1,400
1,225 1,279
2,700
1,200
2,400 1,042
1,800
800
QAR mn
691
1,500 641
586
487 484 517 600
1,200 446
900 400
229 245
600 173
200
300
465 616 644 1,099 1,103 2,476 1,588 1,610 952 805 844 1,107 997 1,238 1,893
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
109
Primary Interviews
Chart 127. Qatar’s Aluminum and Glass Works Demand Forecast, 2015 to 2026
2,000 1,500
1,279 1,400
1,800
1,300
1,600 1,200
1,022 1,100
1,400 982
944
903 1,000
864
Thousand sqm
Chart 128. Qatar’s Aluminum and Glass Works Imports, 2001 to 2015
800 320 350
306
700 300
260
600
223 250
206
Thousand sqm
500
200
QAR mn
173
160
400 147
112 122 728 129
121 150
300
557
467 473 100
200 57 61
43 326 364
280 293
323 324 237 248 50
100
137 181 189
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 129. Qatar’s Aluminum and Glass Works Imports Vs Domestic Sales, 2001 to 2015
3,000
2,700 2,476
2,400
2,100 728 1,893
Thousand sqm
110
Primary Interviews
Chart 130. Qatar’s Aluminum and Glass Works Import Forecast, 2015 to 2026
2,000 1,893 100%
1,800 90%
1,400 70%
Thousand sqm
% share
954 957 990
1,000 936 333 339 50%
316 322 328
300 308
281 281 291
800 275 40%
600 30%
400 29.4% 29.4% 29.4% 29.4% 29.4% 29.4% 29.4% 29.4% 29.4% 29.4% 29.4% 29.4% 20%
200 1,336 673 661 675 699 720 739 757 773 788 800 813 10%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
1,400
1,200
1,000 1,000
QAR / sqm
1,000
800
800
600
600
400 300
200
0
Curtain wall Door/Windows Skylight and domes
Min Max
Source: Team Analysis, Primary Interviews
Chart 132. Qatar’s Aluminum and Glass Works Selling Prices Forecast, 2015 to 2026
1,000
855 876 898
900 815 835 943
776 796 920
735 755
800 718
700 754
718 736
QAR per sqm
684 701
600 652 668
621 637
500 588 604
574
400
300
200
100
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
900 180
147
QAR mn
800 137 160
700 125 140
104 110
600 95 1,238 103 120
500 946 100
400 49 52 794 805 80
300 37 619 60
549 551 554 498
200 476 422 40
403
308 322
100 232 20
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's sqm) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
Aluminum sheet
cladding works
946,422sqm
95%
Non fire rated
Source: Team Analysis, Primary Interviews
600 167
158 175
QAR mn
142 149
141
500 150
946
400 125
100
300 558 567 576
510 524 536 547 75
477 468 478 495
200
50
100 25
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 136. Qatar’s Aluminum Sheet Cladding Works Imports, 2001 to 2015
400 80
68.2
350 65.3 70
300 55.5 60
47.5
Thousand sqm
250 43.8 50
QAR mn
36.8
200 34.2 40
31.2
23.8 26.0 340 27.5
150 25.8 30
260
12.2 13.0 218 221
100 20
9.2 170
151 152 152 137
131 116
50 111 10
85 88
64
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 137. Qatar’s Aluminum Sheet Cladding Works Imports Vs Domestic Sales, 2001 to 2015
1,400
1,238
1,200
340
1,000 946
Thousand sqm
794 805
800 260
218 221 619
549 551 554
600 498
476 170
151 152 403 422 152
898 137
400 308 322 131
111 116 686
232 88 576 584
85
200 398 400 402 449
345 292 306 362
169 223 234
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 138. Qatar’s Aluminum Sheet Cladding Works Import Forecast, 2015 to 2026
1,000 946 100%
900 90%
260
800 80%
700 70%
576
Thousand sqm
300
260
250
QAR / sqm
200
150
100
50
0
Aluminum sheet cladding works
Min Max
Source: Team Analysis, Primary Interviews
Chart 140. Qatar’s Aluminum Sheet Cladding Works Selling Prices Forecast, 2015 to 2026
450
391
382
400 373
364
355
346
338
QAR per sqm
350 330
322
313 344
305 336
298 328
320
300 312
305
298
291
283
250 276
268
262
200
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Window
Door Partition
Chart 141. Qatar’s Aluminum Doors, Windows and Partitions Demand, 2001 to 2015
450 200
400 180
350 160
131.5 140
300 119.1
Thousand sqm
120
102.1
QAR mn
250
88.3 91.4 100
84.1
200 404 76.9
80
56.7 60.5
150
60
100 33.4 193
188 172 187 40
20.1 161 160
10.8 11.1 13.0 14.9 122 121
50 86 20
57
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 142. Qatar’s Aluminum Doors, Windows and Partitions Demand Forecast, 2015 to 2026
300 130
275 111.4 120
107.8
104.2
250 100.4 110
96.6
92.7 100
225 88.8
84.7
80.2 90
200 76.9 76.4 76.6
Thousand sqm
80
175
QAR mn
70
150
60
125
50
100
170 172 174 176 177 40
160 156 155 160 164 167
75 153
30
50 20
25 10
0 0
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 143. Qatar’s Aluminum Doors, Windows and Partitions Imports, 2001 to 2015
400 140
119
350 112 120
300
92 100
Thousand sqm
250 80 78
80
QAR mn
200 61 62
381
49 60
150
37
40
100
170 158 176 163
17 135
50 8 8 11 107 101 20
7 6 87
52
33
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exports: The analysis of historical export data indicates that exports have been very irregular and very small as compared to
the domestic production. During 2001 and 2015, annual exports averaged at 223sqm. In 2015, exports peaked at 16,605sqm on
account of the exports of wall partitions to Kuwait.
Chart 144. Qatar’s Aluminum Doors, Windows and Partitions Exports, 2001 to 2015
18 12
9.7
16
10
14
12 8
Thousand sqm
QAR mn
10
6
8 16.6
6 4
4 1.7 1.8
1.2 1.0 2
0.9
2 0.3 0.6
0.1 0.1 0.1 0.0 0.1 0.0 0.0 3.3 3.1
2.2 1.9 1.7
0 1.0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 145. Key Sources of Aluminum Doors, Windows and Partitions Imports, 2010 to 2015
100% 100%
80% 80%
UK
70% 70%
USA Saudi Arabia
60% 60%
50% 50%
UAE
40% 40%
30% 30%
20% 20%
China
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Trends in imports during 2010 to 2015 indicate that the share of China peaked in 2012 at 79.3% and steadily declined to 30.9% in
2015. During this period, the share of the UAE in imports into Qatar increased from 7.1% in 2012 to 33.5% in 2015 to emerge as
the leading exporter to Qatar. During 2010 to 2015, Saudi Arabia, the US and the UK had small share of imports.
Exports: The analysis of aluminum doors, windows and partitions exports amounting to a total of 27,633sqm from 2010 to 2015
indicates that Kuwait (84%), the KSA (7%), the UAE (7%), Tunisia (1%) and Oman (0.3%) are the major sources of exports.
Chart 146. Key Destinations of Aluminum Doors, Windows and Partitions Exports, 2010 to 2015
100% 100%
Rest of the World
90% Tunisia 90%
Oman
80% 80%
70% 70%
UAE
60% 60%
50% 50%
40% 40%
30% 30%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Chart 147. Qatar’s Aluminum Doors, Windows and Partitions Imports Vs Domestic Sales, 2001 to 2015
500 92% 91% 94% 100%
90%
87%
450 83% 85% 90%
78% 404
400 71% 80%
67% 67% 66%
350 70%
61%
58%
Thousand sqm
300 60%
% share
48%
250 50%
188 193 381 187
200 161 172 160 40%
150 122 121 30%
107 86 170 176 163
100 158 135 20%
46 46 57 87
40 42 52 101
50 33 10%
36 27 29 22 54
24 24 34 35 17 23 20 24 25
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
200 80%
172 174 176 177
167 170
175 160 160 164 70%
156 153 155
Thousand sqm
150 60%
% share
125 50%
50 20%
25 10%
19 19 19 20 20 21 21 22 22 22 23
0 0%
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Exports: The export forecast indicates that exports have a small opportunity as about 9.5% of the domestic production may be
exported. Exports are likely to range from 1,975sqm in 2016 to 2,384qm in 2026.
Chart 149. Qatar’s Aluminum Doors, Windows and Partitions Export Forecast, 2015 to 2026
45 75%
16.60
70%
40 65%
35 60%
55%
30 50%
Thousand sqm
Chart 150. Qatar’s Aluminum Doors, Windows and Partitions Selling Prices Forecast, 2015 to 2026
900
751 770
800 733
698 715
666 681
700 633 650
600 616
586
600
607
QAR per sqm
578 593
500 551 564
525 538
500 513
473 486
400 462
300
200
100
0
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
17.1 16.7
150
QAR mn
14.5
13.1 15
11.8
100 10.0 214
10
7.0 142 146
5.5 112
50 4.0 107
70 82 82 5
60 57 65 59
50 50
33
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Size (Volume, 000's linear meter) Market Size (Value, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
The market size grew from 32,812 linear meter (QAR4mn) in Architects and interior designers who design staircase railings
2001 to a peak of 213,763 linear meter (QAR23.5mn) in 2007, at and fencing are the key influencers.
a CAGR of 37%. The slowdown of 2008–2009 led to subdued
real estate development activity in the subsequent years that 6.1.4.1.3. Demand Forecast
reduced the market size to 49,701 linear meter (QAR13.1mn) The decline in oil prices in 2014 and 2015 is likely to affect
in 2011. Then, the market recovered and is estimated to have the development of new real estate projects that are either
reached 106,853 linear meter (QAR28mn) in 2015. planned or underway. The market size is estimated to have
reduced by 39.8% from 106,853 linear meter in 2015 to 64,369
6.1.4.1.2. Demand Drivers linear meter in 2016.
Demand for aluminum staircase railings and fencing is driven
The aluminum staircase railings and fencing market is expected
by requirements arising from real estate development projects
to grow from 64,369 linear meter in 2016 to an estimated
that include various types of asset classes, such as villas, multi-
75,745 linear meter in 2026, registering a CAGR of 1.6%. In
story residential buildings, commercial developments, public
value terms, the market would grow at a CAGR of 4.3% from
buildings and industrial facilities. Civil contractors undertaking
QAR16.1mn in 2016 to reach QAR24.5mn in 2026.
construction contracts comprise the customer segment.
Chart 152. Qatar’s Aluminum Railing and Fencing Demand Forecast, 2015 to 2026
120 28.0 30
24.5 27
100 23.6
22.7 24
21.8
20.9
Thousand linear meter
19.9
19.0 21
80 18.0
16.2 17.0
16.1 18
QAR mn
60 15
107
12
40 74 75 76
66 68 70 71 73 9
64 63 64
6
20
3
0 0
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Market Size (Volume, 000's linear meter) Market Size (Vaalue, QAR mn)
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics
Chart 153. Qatar’s Aluminum Railing and Fencing Imports, 2001 to 2015
160 12.0
10.0
140
10.0
120 8.0
Thousand linear meter
8.0
100 6.6
QAR mn
5.7 5.8
80 5.4 6.0
4.8 4.9
4.0
60
3.4 4.0
2.6 144
40 2.4
76 71
1.1 1.5
2.0
20 0.8
32 34 33 28
22 23 21 20 25
23 17
0 13 0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exports: Qatar’s exports aluminum railing and fencing products during 2001 to 2008 were negligible. From 2009, Qatar’s exports of
aluminum railing and fencing had been irregular and concentrated around 2011 to 2012. Export in 2015 was valued at QAR0.19mn
(678 linear meter).
Chart 154. Qatar’s Aluminum Railing and Fencing Exports, 2001 to 2015
9 2.5
2.2
8
7 2.0
Thousand linear meter
6
1.5
QAR mn
4 8.2
0.8 1.0
3
Chart 155. Key Sources of Aluminum Railing and Fencing Imports, 2010 to 2015
100% 100%
Rest of the World
90% 90%
80% Saudi Arabia Germany 80%
China
70% 70%
60% UK 60%
50% 50%
40% 40%
30% UAE 30%
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
The UAE has been the dominant source of imports of aluminum staircase railings and fencing products into Qatar. Its share
increased from 29.4% in 2010 to 57.2% in 2015. Other countries such as the UK, Saudi Arabia, China and Germany have had
relatively minor shares of imports into Qatar.
Exports: The analysis of aluminum staircase railings and fencing exports amounting to 14,614 linear meters from 2010 to 2015
indicates that the KSA (49%), the UAE (36%), Lebanon (8%), Bahrain (5%) and Kuwait (0.8%) are the key destinations for exports.
Chart 156. Key Destinations of Aluminum Railing and Fencing Exports, 2010 to 2015
100% 100%
Bahrain Kuwait
90% 90%
80% Lebanon 80%
70% 70%
60% UAE 60%
50% 50%
40% 40%
30% 30%
Saudi Arabia
20% 20%
10% 10%
0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis
Exports of aluminum staircase railings and fencing have been to nearby countries, such as the UAE, Saudi Arabia, Kuwait and
Bahrain. Saudi Arabia was the leading destination for exports from 2010 to 2013, while the UAE was the popular destination in
2014 and 2015.
64% 70%
150 53% 52% 60%
% share
46%
41% 33 42% 50%
38% 40%
76 34%
100 144 40%
31% 31% 28% 25
24% 71 23% 30%
34 28
22 20
50 23 17 20%
32 21 82
23 108 69 70
13 48 48 45 42 54 10%
28 40 34 29
20 27
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Chart 158. Qatar’s Aluminum Railing and Fencing Import Forecast, 2015 to 2026
120 100%
90%
100
25 80%
70%
80
Thousand sqm
60%
% share
60 25 26 26 26 26 27 50%
24 25
24 23 24
40%
40
37% 37% 37% 36% 36% 36% 36% 36% 35% 35% 35% 30%
20%
20 23%
10%
82 41 40 41 42 44 45 46 47 48 48 49
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 159. Qatar’s Aluminum Railing and Fencing Export Forecast, 2015 to 2026
90 30%
0.66
80
25%
70
Thousand linear meter
60 20%
1.13 1.15 1.16
1.06 1.09 1.11
50
% share
1.00 1.03
0.96 0.95 0.97 15%
40
30 82 41 40 41 42 44 45 46 47 48 48 49 10%
20
2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 5%
10 0.8%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 160. Qatar’s Aluminum Railing and Fencing Selling Prices Forecast, 2015 to 2026
450
376 385
400 367
349 358
333 341
350 317 325
300 308
293
QAR per linear meter
300
250
200
201 206 211
187 191 196
150 174 178 182
161 164 169
100
50
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Chart 161. Qatar’s Architectural Aluminum Fabrication Market Structure and Capacity Utilization
2,000,000 100%
90%
22.8% 39.3%
Small Large 80%
1,500,000 70.0% 1,350,000
65.1% 70%
1,200,000
60%
60.0%
sqm
1,000,000 50%
%
750,000
40%
30%
500,000
20%
10%
37.9% 0 0%
Medium Large Medium Small
Based on insights from primary interviews, these firms have Qatar’s top-5 architectural aluminum fabrication firms form the
an installed capacity of not more than 15,000sqm per annum. group of large-sized firms. They collectively constitute 39.3%
These units have less than 10 employees and their capacity share of the market in terms of quantity. Furthermore, in terms
utilization is 65.1%. Small companies mainly focus on doors of products and services, the leading players have capabilities
and windows, railings and fencing, and assembly of imported to manufacture all types of aluminum and glass works, sheet
aluminum and glass works. Qatar has 50 such firms that cladding, doors, windows and partitions, staircase railings and
collectively account for 23% share of the market. fencing. Average capacity utilization of large firms is 70%.
Large-sized Firms
• Curtain walls
• Structural glazing
• Cladding
AluTech 1995 500,000
• Glass doors
• Auto/revolving doors
• Fire-rated doors with glass
• Curtain walls
• Doors and windows
• Glazed screens,
• Shop fronts
Technical Glass And • Canopies
1989 300,000
Aluminium Company • Skylights
• Sunshades
• Balustrades
• Hand railings
• Fencing
• Curtain walls
• Cladding
Jafco Aluminum and
2004 • Doors and windows 250,000
Steel Co
• Skylights and domes Partitions
• Handrails
• Skylights
• Cladding
Khalid Aluminium Co. 1965 • Partitions 60,000
• Doors and windows
• Kitchen cabinets
• Curtain walls
• Doors and windows
Union For Steel And
1977 • Kitchen cabinets 60,000
Aluminium
• Cladding
• Partitions
• Curtain walls
• Cladding
• Composite panels
Ismail Bin Ali Aluminium 1982 20,000
• Spider systems,
• Glazing
• Sliding and revolving doors
Chart 162. Qatar’s Architectural Aluminum Fabrication Demand-Supply Analysis, 2015 to 2026
4,000
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,000
3,090
2,000
1,962
1,933
1,905
1,869
1,833
Thousand MT
1,791
1,746
1,695
1,639
1,636
1,605
1,000
0
(210)
(1,000)
Architectural Aluminum Fabrication Market Size (Total Demand, incl. imports) 000s sqm
Supply (Domestic installed capacity) 000s sqm Demand Supply Gap
Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015, ITC Trademap
235
Team Analysis
STRENGTHS OPPORTUNITIES
• Addressable market of QAR893mn in 2016 • Upcoming real estate projects across asset
growing at a CAGR of 4.4% in value terms, to reach classes, such as villas, multi-story buildings and
QAR1,375mn in 2026. commercial buildings.
• Wide range of products, such as doors, windows, • Opportunity to use creative and architectural
partitions, curtain walls, structural glazing, sheet aspects to differentiate
cladding, handrails, fencing, skylights and domes. • Opportunity to differentiate by focusing on a
• Domestic players have been able to acquire a combination of products.
majority share in products, such as aluminum and
glass works, aluminum sheet cladding, staircase
railings and fencing.
SWOT
WEAKNESSES THREATS
• In case of products such aluminum doors, windows • Low-priced imports adversely impacting the
and partitions, more than 80% of the market is salability of domestic production in times of
served by imports. economic slowdown.
• Dependence on imports for raw materials • Intense rivalry between fabricators threatening
affecting price competitiveness new entrants
• Highly price-sensitive market
Summary:
In the medium to long term, the strengths and the opportunities outweigh the weaknesses and threats due to large
market size, pipeline of upcoming projects in Qatar, fragmented customer base and the localized nature of the products.
Figure 21: Michael Porter’s Five Forces Model (Architectural Aluminum Fabrication)
THREAT OF
NEW ENTRY
High:
• Architectural aluminum
fabrication is neither
capital-intensive nor
technology-intensive.
• Creative designs for
architectural products,
can be achieved by hiring
suitable staff. Thus, the
threat of new entry is high.
BARGAINING BARGAINING
COMPETITIVE RIVALRY
POWER – SUPPLIERS POWER – CONSUMERS
High: High: Medium:
• Part of the raw materials • Architectural aluminum • Despite a significant
for architectural aluminum fabrication market is number of fabricators
fabrication (e.g., aluminum highly competitive with operating in the business,
sheets, glass) are not several players operating the bargaining power of
manufactured in Qatar; in the market. consumers is medium as
hence, manufacturers have • Intense competitive rivalry there is scope for product
to rely on imports. ensures that price and differentiation based on
relationship are the key design and creative inputs.
• Suppliers have high
bargaining. deciding factors in
securing a job order.
THREAT OF
SUBSTITUTION
Low:
• The boundaries within
which wood, steel, glass
and aluminum can be
used architectural products
are well set. Hence, it is
unlikely for architectural
aluminum fabrication
products to be substituted
by other materials.
6 Customer Service
Thorough understanding of the clients’ 7 Investment in Machinery
requirements is crucial in gaining the trust of
the customers. In case of the villa segment, Companies should invest in modern
the fabricator is in direct contact with the machinery, experienced welders, designers
end-user, i.e., the residents of the villa. A and project managers. This would enable
delighted end-user can help spread word-of- them to deliver demanding projects and
mouth goodwill, which can prove to be highly gain an edge over the competition.
beneficial in a competitive market.
Medium Low
6.3. Outlook
The architectural aluminum fabrication forms a sizable portion
(21.4%) of the structural metal products sector. Qatar’s growing
real estate sector offers opportunities for new units in the
architectural aluminum fabrication market in products such as
aluminum and glass works, aluminum sheet cladding, staircase
railings and fencing.
The market is expected to grow at a CAGR of 4.4% from
QAR893mn in 2016 to an estimated QAR1,375mn in 2026.
A large market size and a moderate pace of growth offer
an opportunity for new players to tap into 32,738sqm worth
of average incremental opportunity every year. Subject to
competitive challenges, opportunities exist for two medium-
sized players (5,000sqm per month installed capacity, running
at 80% utilization) dedicated to architectural aluminum
fabrication works, to enter the market every three years.
In terms of challenges, the market is likely to remain significantly
competitive and price sensitive. Heavy dependence on
imports for procurement of raw materials and high operational
expenses (salaries, rent, etc.) as compared to those in other
countries such as the UAE and the KSA would limit export
potential to rare opportunities. Imports are likely to remain
cheaper as compared to domestic production and further
heighten the challenges.
In the medium to long term, the strengths and the opportunities
outweigh the weaknesses and threats due to large market size,
upcoming projects pipeline in Qatar, fragmented customer
base and the localized nature of the product.
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