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Manufacture of

Structural Metal
Products
2017
Manufacture of Structural Metal Products
Manufacture of Structural Metal Products
Abdulaziz bin Nasser al-Khalifa
CEO

According to the Ministry of


Development Planning and Statistics data,
this sector had 558 manufacturing
establishments that together employed a workforce of
27,398 personnel in 2015.

4 Manufacture of Structural Metal Products


CEO’s Message


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.

Abdulaziz bin Nasser al-Khalifa


CEO

Manufacture of Structural Metal Products 5


CEO’s Message.......................................................... 5 1. Introduction ......................................................... 22
1.1. Sector Overview................................................ 22
Table of Contents...................................................... 7
1.2. HS Codes of Product Segments...................... 30

List of Charts.............................................................. 9 1.3. Raw Materials ................................................... 33

List of Tables............................................................ 13 2. Structural Steel Fabrication ............................... 38


2.1. Qatar Market Overview.................................... 38
List of Figures........................................................... 14 2.2. Critical Success Factors.................................... 54
2.3. Outlook.............................................................. 55
List of Abbreviations................................................ 16
3. Pre-engineered Buildings................................... 56
Executive Summary ................................................ 18
3.1. Overview of PEBs.............................................. 56
3.2. Qatar PEB Market Analysis.............................. 59
3.3. Critical Success Factors.................................... 71
3.4. Outlook.............................................................. 72

6 Manufacture of Structural Metal Products


Table of contents

4. Pre-fabricated Buildings...................................... 74 6. Architectural Aluminum Fabrication................ 144


4.1. Qatar Market Overview.................................... 74 6.1. Qatar Market Overview.................................. 144
4.2. Critical Success Factors.................................... 98 6.2. Critical Success Factors.................................. 173
4.3. Outlook.............................................................. 99 6.3. Outlook............................................................ 174

5. Architectural Steel Fabrication........................ 100 7. References.......................................................... 176


5.1. Qatar Market Overview.................................. 100
5.2. Critical Success Factors.................................. 142
5.3. Outlook............................................................ 143

Manufacture of Structural Metal Products 7


Chart 1. Qatar's Structural Steel Fabrication Demand, 2001 to 2015.................................................................................................... 39
Chart 2. Structural Steel Fabrication Market Segmentation, 2015......................................................................................................... 39
Chart 3. Qatar’s Structural Steel Fabrication Demand Forecast, 2015 to 2026..................................................................................... 40
Chart 4. Qatar’s Structural Steel Fabrication Market Structure and Capacity Utilization..................................................................... 41
Chart 5. Qatar’s Structural Steel Fabrication Imports, 2001 – 2015........................................................................................................ 44
Chart 6. Structural Steel Fabrication Imports by Products, 2015............................................................................................................ 45
Chart 7. Qatar’s Structural Steel Fabrication Exports, 2001 – 2015........................................................................................................ 45
Chart 8. Structural Steel Fabrication Exports by Products, 2015............................................................................................................ 46
Chart 9. Key Sources of Structural Steel Fabrication Imports, 2010 to 2015......................................................................................... 46
Chart 10. Key Destinations for Structural Steel Fabrication Exports, 2010 to 2015.............................................................................. 47
Chart 11. Qatar’s Structural Steel Fabrication Imports v/s Domestic Sales, 2001 – 2015..................................................................... 48
Chart 12. Qatar’s Structural Steel Fabrication Import Forecast, 2015 to 2026...................................................................................... 48
Chart 13. Qatar’s Structural Steel Fabrication Export Forecast, 2014 to 2026....................................................................................... 49
Chart 14. Qatar’s Structural Steel Fabrication Demand-Supply Analysis, 2014 to 2026....................................................................... 49
Chart 15. Qatar’s Structural Steel Fabrication Selling Prices Forecast, 2014 to 2026........................................................................... 51
Chart 16. Qatar’s PEB Demand, 2001 - 2015............................................................................................................................................ 59
Chart 17. PEB Market Segmentation, 2015.............................................................................................................................................. 59
Chart 18. Qatar’s PEB Demand Forecast, 2014 to 2026.......................................................................................................................... 60
Chart 19. Qatar’s PEB Production Capacity and Utilization.................................................................................................................... 61
Chart 20. Qatar’s PEB Market Share of Key Players, 2015....................................................................................................................... 61
Chart 21. Qatar’s PEB Imports, 2001 - 2015.............................................................................................................................................. 63
Chart 22. Qatar’s PEB Exports, 2001 - 2015.............................................................................................................................................. 63
Chart 23. Key Sources of PEB’s Imports, 2010 - 2015.............................................................................................................................. 64
Chart 24. Key Destinations of PEB’s Exports, 2010 - 2015....................................................................................................................... 64
Chart 25. Qatar’s PEB Imports Vs Domestic Sales, 2001 - 2015.............................................................................................................. 65
Chart 26. Qatar’s PEB Imports Forecast, 2015 - 2026.............................................................................................................................. 66
Chart 27. Qatar’s PEB Exports Forecast, 2014 to 2026............................................................................................................................ 66
Chart 28. Qatar’s PEB Demand-Supply Analysis, 2015 to 2026.............................................................................................................. 67
Chart 29. Qatar’s PEB Selling Prices Forecast, 2014 to 2026................................................................................................................... 68
Chart 30. Pre-fabricated Buildings Market Segmentation, 2015............................................................................................................ 74
Chart 31. Qatar’s Pre-fabricated Labor Accommodation Demand, 2001 - 2015................................................................................... 76
Chart 32. Qatar’s Pre-fabricated Labor Accommodation Demand Forecast, 2015 to 2026................................................................. 77
Chart 33. Qatar’s Pre-fabricated Labor Accommodation Imports, 2001 - 2015.................................................................................... 77

8 Manufacture of Structural Metal Products


List of charts

Chart 34. Qatar’s Pre-fabricated Labor Accommodation Exports, 2001 - 2015.................................................................................... 78


Chart 35. Key Sources of Pre-fabricated Labor Accommodation Imports, 2010 to 2015..................................................................... 78
Chart 36. Key Destinations of Pre-fabricated Labor Accommodation Exports, 2010 to 2015............................................................. 79
Chart 37. Qatar’s Pre-fabricated Labor Accommodation Imports Vs Domestic Sales, 2001 - 2015.................................................... 79
Chart 38. Qatar’s Pre-fabricated Labor Accommodation Import Forecast, 2015 - 2026...................................................................... 80
Chart 39. Qatar’s Pre-fabricated Labor Accommodation Export Forecast, 2015 to 2026.................................................................... 81
Chart 40. Qatar’s Pre-fabricated Labor Accommodation Selling Prices Forecast, 2015 to 2026......................................................... 81
Chart 41. Qatar's Pre-fabricated Private Units Demand, 2001 - 2015.................................................................................................... 82
Chart 42. Pre-fabricated Private Units Segmentation, by Volume: Domestic, 2015............................................................................. 83
Chart 43. Qatar’s Pre-fabricated Private Units Demand Forecast, 2015 to 2026................................................................................... 83
Chart 44. Qatar’s Pre-fabricated Private Units Imports, 2001 - 2015...................................................................................................... 84
Chart 45. Qatar’s Pre-fabricated Private Units Exports, 2001 - 2015....................................................................................................... 84
Chart 46. Key Sources of Pre-fabricated Private Units Imports, 2010 to 2015....................................................................................... 85
Chart 47. Key Destinations of Pre-fabricated Private Units Exports, 2010 to 2015............................................................................... 85
Chart 48. Qatar’s Pre-fabricated Private Units Imports Vs Domestic Sales, 2001 - 2015...................................................................... 86
Chart 49. Qatar’s Pre-fabricated Private Units Import Forecast, 2015 to 2026...................................................................................... 87
Chart 50. Qatar’s Pre-fabricated Private Units Export Forecast, 2015 to 2026...................................................................................... 87
Chart 51. Qatar’s Pre-fabricated Private Units Selling Prices Forecast, 2015 to 2026........................................................................... 88
Chart 52. Qatar's Pre-fabricated Greenhouse Demand, 2001 - 2015..................................................................................................... 88
Chart 53. Qatar’s Pre-fabricated Greenhouse Demand Forecast, 2015 to 2026................................................................................... 89
Chart 54. Qatar’s Pre-fabricated Greenhouse Imports, 2001 - 2015....................................................................................................... 89
Chart 55. Key Sources of Pre-fabricated Greenhouse Imports, 2010 to 2015....................................................................................... 90
Chart 56. Qatar’s Pre-fabricated Greenhouse Imports Vs Domestic Sales, 2001 - 2015....................................................................... 90
Chart 57. Qatar’s Pre-fabricated Greenhouse Import Forecast, 2015 to 2026...................................................................................... 91
Chart 58. Qatar’s Pre-fabricated Greenhouse Selling Prices Forecast, 2015 to 2026........................................................................... 91
Chart 59. Qatar’s Pre-fabricated Buildings Market Structure and Capacity Utilization........................................................................ 92
Chart 60. Qatar’s Pre-engineered Buildings Demand-Supply Analysis, 2015 to 2026.......................................................................... 94
Chart 61. Architectural Steel Fabrication Market Segmentation, 2015................................................................................................ 100
Chart 62. Qatar’s Entrance Gates Demand, 2001 - 2015....................................................................................................................... 101
Chart 63. Entrance Gates Market Segmentation, 2015......................................................................................................................... 102
Chart 64. Qatar’s Entrance Gates Demand Forecast, 2015 to 2026..................................................................................................... 103
Chart 65. Qatar’s Entrance Gates Imports, 2001 - 2015........................................................................................................................ 103
Chart 66. Qatar’s Entrance Gates Exports, 2001 - 2015......................................................................................................................... 104

Manufacture of Structural Metal Products 9


Chart 67. Qatar’s Entrance Gates Imports Vs Domestic Sales, 2001 - 2015......................................................................................... 104
Chart 68. Qatar’s Entrance Gates Import Forecast, 2015 to 2026........................................................................................................ 105
Chart 69. Qatar’s Entrance Gates Export Forecast, 2015 to 2026......................................................................................................... 105
Chart 70. Qatar’s Entrance Gates Selling Prices Forecast, 2015 to 2026............................................................................................. 106
Chart 71. Qatar’s Decorative Doors Demand, 2001 - 2015................................................................................................................... 107
Chart 72. Decorative Doors Market Segmentation, 2015..................................................................................................................... 107
Chart 73. Qatar’s Decorative Doors Demand Forecast, 2015 to 2026................................................................................................. 108
Chart 74. Qatar’s Decorative Doors Imports, 2001 - 2015..................................................................................................................... 108
Chart 75. Qatar’s Decorative Doors Exports, 2001 - 2015..................................................................................................................... 109
Chart 76. Qatar’s Decorative Doors Imports Vs Domestic Sales, 2001 - 2015..................................................................................... 109
Chart 77. Qatar’s Decorative Doors Import Forecast, 2015 to 2026..................................................................................................... 110
Chart 78. Qatar’s Decorative Doors Export Forecast, 2015 to 2026..................................................................................................... 110
Chart 79. Qatar’s Decorative Doors Selling Prices Forecast, 2015 to 2026.......................................................................................... 111
Chart 80. Qatar’s Steel Flush Doors Demand, 2001 - 2015................................................................................................................... 112
Chart 81. Steel Flush Doors Market Segmentation, 2015..................................................................................................................... 112
Chart 82: Qatar’s Steel Flush Doors Demand Forecast, 2015 to 2026................................................................................................. 113
Chart 83. Qatar’s Steel Flush Doors Imports, 2001 - 2015..................................................................................................................... 113
Chart 84. Qatar’s Steel Flush Doors Exports, 2001 - 2015..................................................................................................................... 114
Chart 85. Qatar’s Steel Flush Doors Imports Vs Domestic Sales, 2001 - 2015..................................................................................... 114
Chart 86. Qatar’s Steel Flush Doors Import Forecast, 2015 to 2026..................................................................................................... 115
Chart 87. Qatar’s Steel Flush Doors Export Forecast, 2015 to 2026..................................................................................................... 115
Chart 88. Qatar’s Steel Flush Doors Selling Prices Forecast, 2015 to 2026.......................................................................................... 116
Chart 89. Qatar’s Rolling Shutters Demand, 2001 - 2015...................................................................................................................... 117
Chart 90. Rolling Shutters Market Segmentation, 2015........................................................................................................................ 117
Chart 91. Qatar’s Rolling Shutters Demand Forecast, 2015 to 2026.................................................................................................... 118
Chart 92. Qatar’s Rolling Shutters Imports, 2001 - 2015........................................................................................................................ 118
Chart 93. Qatar’s Rolling Shutters Exports, 2001 - 2015........................................................................................................................ 119
Chart 94. Qatar’s Rolling Shutters Imports Vs Domestic Sales, 2001 - 2015........................................................................................ 119
Chart 95. Qatar’s Rolling Shutters Import Forecast, 2015 to 2026........................................................................................................ 120
Chart 96. Qatar’s Rolling Shutters Export Forecast, 2015 to 2026........................................................................................................ 120
Chart 97. Qatar’s Rolling Shutters Fabrication Selling Prices Forecast, 2015 to 2026........................................................................ 121
Chart 98. Key Sources of Imports (All Types of Steel Doors), 2010 to 2015......................................................................................... 121
Chart 99. Key Destinations of Exports (All Types of Steel Doors), 2010 to 2015................................................................................. 122

10 Manufacture of Structural Metal Products


List of charts

Chart 100. Qatar’s Staircase Railings Demand, 2001 - 2015.................................................................................................................. 123


Chart 101. Staircase Railings Market Segmentation, 2015.................................................................................................................... 123
Chart 102. Qatar’s Staircase Railings Demand Forecast, 2016 to 2026................................................................................................ 124
Chart 103. Qatar’s Staircase Railings Imports, 2001 - 2015................................................................................................................... 124
Chart 104. Qatar’s Staircase Railings Exports, 2001 - 2015.................................................................................................................... 125
Chart 105. Key Sources of Staircase Railings Imports, 2010 to 2015.................................................................................................... 125
Chart 106. Key Destinations of Staircase Railings Exports, 2010 to 2015............................................................................................ 126
Chart 107. Qatar’s Staircase Railings Imports Vs Domestic Sales, 2001 - 2015................................................................................... 126
Chart 108. Qatar’s Staircase Railings Import Forecast, 2015 to 2026................................................................................................... 127
Chart 109. Qatar’s Staircase Railings Export Forecast, 2015 to 2026................................................................................................... 128
Chart 110. Qatar’s Staircase Railings Selling Prices Forecast, 2015 to 2026........................................................................................ 128
Chart 111. Qatar’s Grills and Fencing Demand, 2001 - 2015................................................................................................................ 129
Chart 112. Grills and Fencing Market Segmentation, 2015.................................................................................................................. 130
Chart 113. Qatar’s Grills and Fencing Demand Forecast, 2015 to 2026.............................................................................................. 130
Chart 114. Qatar’s Grills and Fencing Imports, 2001 - 2015.................................................................................................................. 131
Chart 115. Qatar’s Grills and Fencing Exports, 2001 - 2015.................................................................................................................. 131
Chart 116. Key Sources of Grills and Fencing Imports, 2010 to 2015.................................................................................................. 132
Chart 117. Key Destinations of Grills and Fencing Exports, 2010 to 2015........................................................................................... 132
Chart 118. Qatar’s Grills and Fencing Imports Vs Domestic Sales, 2001 - 2015.................................................................................. 133
Chart 119. Qatar’s Grills and Fencing Import Forecast, 2015 to 2026.................................................................................................. 134
Chart 120. Qatar’s Grills and Fencing Export Forecast, 2015 to 2026.................................................................................................. 134
Chart 121. Qatar’s Grills and Fencing Selling Prices Forecast, 2015 to 2026....................................................................................... 135
Chart 122. Qatar’s Architectural Steel Fabrication Market structure and Capacity Utilization.......................................................... 136
Chart 123. Qatar’s Architectural Steel Fabrication Demand-Supply Analysis, 2014 to 2026.............................................................. 138
Chart 124. Architectural Aluminum Fabrication Market Segmentation, 2015..................................................................................... 144
Chart 125. Qatar’s Aluminum and Glass Works Demand, 2001 - 2015................................................................................................ 145
Chart 126. Architectural Aluminum Fabrication Market Segmentation, 2015..................................................................................... 146
Chart 127. Qatar’s Aluminum and Glass Works Demand Forecast, 2015 to 2026............................................................................... 146
Chart 128. Qatar’s Aluminum and Glass Works Imports, 2001 - 2015.................................................................................................. 147
Chart 129. Qatar’s Aluminum and Glass Works Imports Vs Domestic Sales, 2001 - 2015.................................................................. 147
Chart 130. Qatar’s Aluminum and Glass Works Import Forecast, 2015 to 2026.................................................................................. 148
Chart 131. Price Range of Aluminum and Glass Works......................................................................................................................... 148
Chart 132. Qatar’s Aluminum and Glass Works Selling Prices Forecast, 2015 to 2026....................................................................... 149

Manufacture of Structural Metal Products 11


List of charts

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

12 Manufacture of Structural Metal Products


List of tables

Table 1. Segments under Structural Metal Products............................................................................................................................... 24


Table 2. HS Codes of Structural Steel Fabrication Products................................................................................................................... 30
Table 3. HS Codes of PEBs........................................................................................................................................................................ 30
Table 4. HS Codes of Pre-fabricated Buildings........................................................................................................................................ 31
Table 5. HS Codes of Architectural Steel Fabrication Products............................................................................................................. 32
Table 6. HS Codes of Architectural Aluminum Fabrication..................................................................................................................... 33
Table 7. Raw Materials Consumed............................................................................................................................................................ 33
Table 8. HS Codes of Steel Raw Materials................................................................................................................................................ 34
Table 9. HS Codes of Aluminum Raw Materials....................................................................................................................................... 37
Table 10. Structural Steel Fabrication Market Structure Snapshot......................................................................................................... 42
Table 11. Structural Steel Fabrication: Key Domestic Players................................................................................................................. 42
Table 12. PEB: Key Domestic Players........................................................................................................................................................ 62
Table 13. Pre-fabricated Buildings Market Structure Snapshot.............................................................................................................. 93
Table 14. Pre-fabricated Buildings: Key Domestic Players...................................................................................................................... 93
Table 15. Architectural Steel Fabrication Market Structure Snapshot................................................................................................. 136
Table 16. Architectural Steel Fabrication: Key Domestic Players......................................................................................................... 137
Table 17. Architectural Aluminum Fabrication Market Structure Snapshot......................................................................................... 167
Table 18. Architectural Aluminum Fabrication: Key Domestic Players................................................................................................. 167

Manufacture of Structural Metal Products 13


List of figures

Figure 1: Metal Fabrication Value Chain................................................................................................................................................... 22


Figure 2: Segments under Structural Metal Products............................................................................................................................. 23
Figure 3: Structural Steel Fabrication Cost Component......................................................................................................................... 50
Figure 4: Structural Steel Fabrication SWOT Analysis............................................................................................................................. 52
Figure 5: Michael Porter’s Five Forces Model (Structural Steel Fabrication)......................................................................................... 53
Figure 6: Critical Success Factors - Structural Steel Fabrication............................................................................................................ 54
Figure 7: Key Components of PEBs.......................................................................................................................................................... 56
Figure 8: Applications of PEBs.................................................................................................................................................................. 57
Figure 9: Benefits of PEBs vs Conventional Steel Buildings................................................................................................................... 58
Figure 10: Cost components of PEBs....................................................................................................................................................... 67
Figure 11: PEB SWOT Analysis.................................................................................................................................................................. 69
Figure 12: Michael Porter’s Five Forces Model (Pre-engineered Building)........................................................................................... 70
Figure 13: Critical Success Factors - Pre-engineered Building............................................................................................................... 71
Figure 14: Pre-fabricated Buildings SWOT Analysis................................................................................................................................ 96
Figure 15: Michael Porter’s Five Forces Model (Pre-fabricated Building).............................................................................................. 97
Figure 16: Critical Success Factors - Pre-fabricated Building................................................................................................................. 98
Figure 17: Architectural Steel Fabrication SWOT Analysis................................................................................................................... 140
Figure 18: Michael Porter’s Five Forces Model (Architectural Steel Fabrication)................................................................................ 141
Figure 19: Critical Success Factors - Architectural Steel Fabrication................................................................................................... 142
Figure 20: Architectural Aluminum Fabrication SWOT Analysis.......................................................................................................... 171
Figure 21: Michael Porter’s Five Forces Model (Architectural Aluminum Fabrication)....................................................................... 172
Figure 22: Critical Success Factors - Architectural Aluminum Fabrication.......................................................................................... 173

14 Manufacture of Structural Metal Products


Manufacture of Structural Metal Products 15
List of Abbreviations

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

16 Manufacture of Structural Metal Products


Manufacture of Structural Metal Products 17
Executive Summary

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

18 Manufacture of Structural Metal Products


Structural Steel Fabrication Segment Overview: Structural In the medium to long term, the opportunities would
steel fabrication comprises constructing load-bearing steel outweigh the challenges due to the large market size, pipeline
frames (i.e., columns, beams, floors, trusses, etc.) for residential of upcoming projects in Qatar and opportunities for civil
and commercial buildings, industrial facilities and other contractors to integrate backward.
projects. Driven by the construction sector, the market size
Pre-Engineered Buildings Segment Overview: PEBs use
for structural steel fabrication grew at a CAGR of 15.7% from
steel plates and sheets to fabricate pre-designed primary and
57,482MT (QAR272mn) in 2001 to an estimated 441,684MT
secondary sections for factory sheds, warehouses, hangars and
(QAR4,107mn) in 2015.
other industrial and commercial buildings.
Qatar has 467 firms in the steel fabrication segment. Most
Driven chiefly by the industrial sector projects, the market size
steel fabrication units have capabilities to undertake both
for pre-engineered buildings was estimated to be 33,732MT
architectural steel fabrication and structural steel fabrication
(QAR201.8mn) in 2015. In terms of value, pre-engineered
works. The average capacity utilization for structural steel
buildings constitute 2.6%7 of the structural metal products
fabrication segment in 2015 was 62.8%.
sector. The average capacity utilization8 for pre-engineered
Due to the slowdown in the construction sector, the market size buildings segment was 60% in 2015.
reduced by 20.9%, in value terms, from QAR4,107mn in 2015 to The establishment of a domestic manufacturing facility in 2007
QAR3,247mn in 2016. substantially reduced Qatar’s dependence on PEB imports
Going forward, the structural steel fabrication market is from 63% in 2006 to about 38% share of the total market in
expected to grow at a CAGR of 4.0% from QAR3,247mn in 2015. Currently, there is only one domestic company (BSI Steel)
2016, to an estimated QAR4,804mn (456,740MT) in 2026. with a fabrication capacity of 20,000 MTPA that is focused
Each structural steel fabrication work is a unique job order based entirely on the fabrication of PEBs. There are also a handful of
on its engineering design and can be segmented by project other steel fabricators that manufacture small volumes of PEB
type. The demand is likely to arise from the key segments, such as part of the overall service offerings and were servicing the
as factory and warehouses (50% share), real estate (15% share) market from 2001 to 2006. Another player, with a capacity of
and infrastructure (10% share). Metro rail projects and stadium 30,000MTp.a. is expected to commence production in 2017.
works are expected to constitute 4% and 2% of the demand, Large scale developments, such as the Special Economic
respectively, during 2016 to 2026. Zones (SEZs) promoted by Manateq, factory sheds, warehouses
In terms of challenges, the market is likely to remain significantly projects and other industrial projects, would drive the demand
competitive and price sensitive. Heavy dependence on imports for PEBs. On the back of these demand drivers, the market is
for procurement of raw material and high operational expenses4 expected to grow at a CAGR of 4.2% from QAR201.8mn in 2015
(salaries, rent, etc.) - as compared to those in other countries to an estimated QAR317.8mn in 2026.
such as the UAE and the KSA - would limit export potential5 to With respect to challenges, the market is likely to remain
rare opportunities of up to 2.2% of the domestic production competitive and price sensitive. Dependence on imports for
for structural steel fabrication. Imports are likely to constitute procurement of raw materials and higher operational expenses
33% to 38% of the market, as they are cheaper than domestic (salaries, rents, etc.) than in other countries, such as the UAE
production. These would further heighten the challenges and and the KSA, would limit export potential to rare opportunities
intensify competitive rivalry. In view of the challenges, key of less than 1% of domestic production.
critical success factors include access to raw material linkages, Given the market size and the growth potential of this
access to market and strategic linkages, operational efficiency segment, driven mainly by factory, warehousing and industrial
and technical know-how. projects, subject to competitive challenges, new entrepreneurs
Large market size means an opportunity6 for new players to can benefit from average incremental opportunities worth
tap into 2,948MT worth of average incremental business every QAR15mn (1,148MT) per annum from 2017 to 2026. However,
year, from 2017 to 2026. This implies that subject to competitive as the average incremental business per annum until 2026 is
challenges, opportunities exist for two mid-sized players (1,800 low for offering viable opportunities, entrepreneurs would have
MT per annum installed capacity running at 80% utilization) to to target related segments, such as structural steel fabrication
enter the market every year. and architectural steel fabrication, and focus on being cost
competitive to be able to substitute imports and gain market
share from existing players.

4,8
Primary Interviews
5, 6,7
Team Analysis

Manufacture of Structural Metal Products 19


Pre-fabricated Housing Segment Overview: Pre-fabricated players to tap into from 2017 to 2026, subject to competitive
buildings use cold-formed sections made from galvanized challenges. As the average incremental business per annum
iron slit coils9, light gauge steel sections and various finishing till 2026 is low for offering viable opportunities, entrepreneurs
materials such as gypsum boards, aluminum sheets along with would have to focus on being cost competitive to be able to
rockwool or fiberglass insulation materials to build habitable compete and gain market share from established players in
spaces, such as labor accommodations, site offices, mosques, the market.
majlis, villa extensions and security cabins.
Architectural Steel Fabrication Segment Overview:
Qatar’s pre-fabricated buildings market was valued at Architectural steel fabrication comprises steel products
QAR806mn in 2015, constituting 10.4% of the overall structural manufactured through the processes of designing, cutting,
metal products sector. The market has witnessed a steady bending, welding and assembling. These products have
growth wherein the demand has grown from 262,305sqm decorative and non-load-bearing applications, such as
(QAR193mn) in 2005 to 753,514sqm (QAR806mn) in 2015 entrance gates, decorative doors, steel flush doors, rolling
indicating a growth of 11.1% in volume and 15.4% in value shutters, staircase handrails, and fencing and grills.
terms. Qatar has 20 firms operating in this segment. The
The 2015 architectural steel fabrication market is sized at
average capacity utilization for the pre-fabricated buildings
QAR961mn. Real estate asset classes, such as villas and multi-
segment was 52.3% in 2015. The market size reduced by
story residential developments, are likely to be the prime
33.2% in value terms, from QAR806mn in 2015 to QAR539mn
drivers of growth for most architectural products. Key products
in 2016. The market is expected to grow at a CAGR of 3.8%
include grills and fencing (38.5% share), steel staircase railings
from QAR539mn in 2016 to an estimated QAR782mn in 2026.
(26.3% share), entrance gates (15.1% share) and decorative
The pre-fabricated buildings market is dominated by larger doors (9.7% share).
players with the capacity and capability to focus on a varied
Qatar has 467 firms in the steel fabrication segment. Most
mix of products, projects and customers. Domestic players
steel fabrication units have capabilities to undertake both
have an upper hand in terms of market knowledge, access to
architectural steel fabrication and structural steel fabrication
projects, support from their well-established parent companies
works. The average capacity utilization for architectural steel
and quicker turnaround time as compared to importers.
fabrication segment in 2015 was 63.8%. Owing to the slowdown
The demand for labor accommodations, which formed the in the construction sector, the architectural steel fabrication
largest share with 58.6% of the 2015 pre-fabricated buildings market size reduced by 34.5%, in value terms, from QAR961mn
market in value terms, is likely to be driven by real estate and in 2015 to an estimated QAR629mn in 2016.
infrastructure development projects, giving rise to an influx of
Villas are expected to account for 45% of Qatar’s upcoming
laborers into Qatar. The pre-fabricated labor accommodation
real estate development10 of 78.9mn sqm over 2016 to 2026.
segment is expected to grow, in value terms, at a CAGR of
Villas are likely to be a prime driver for most architectural
3.8%, from QAR306mn (316,746sqm) in 2016 to an estimated
products. On the back of strong demand drivers, the market is
QAR444mn (360,022sqm) in 2026.
expected to grow at a CAGR of 3.7% from QAR629mn in 2016
Pre-fabricated private units comprising site offices, majlis, to an estimated QAR909mn in 2026.
mosques, security kiosks, etc. accounted for 39.8% share of the
In the architectural steel fabrication market, grills and fencing
2015 pre-fabricated buildings market. This segment is likely to
is the largest segment as it serves the needs of all types of
experience a healthy growth rate (CAGR 3.8%) from QAR227mn
real estate projects as well as those of infrastructure projects.
in 2016 to reach QAR329mn in 2026. The construction of real
The market would grow at a CAGR of 3.7% from QAR256mn
estate asset classes, such as villas and multi-story residential
(677,039sqm) in 2016 to reach QAR370mn (764,800sqm) in 2026.
developments, are likely to be the prime demand drivers for
Steel staircase railings is another large market as it widely used
most pre-fabricated private units.
across all real estate projects. It is expected to grow at a CAGR
Pre-fabricated greenhouses is a marginal segment constituting of 3.7% from QAR160mn (185,661 linear meter) in 2016 to reach
only 1.6% of the 2015 pre-fabricated buildings market. These QAR231mn (209,727sqm) in 2026. Going forward, the domestic
are mainly used for agricultural purposes, such as cultivation players would continue to dominate the market for products
of crops, fruits and vegetables within temperature and climate- such as entrance gates (63.2% market share), decorative gates
controlled in-house structures, which have minor opportunities (65.7% market share), staircase railings (85.5% market share),
in Qatar. Valued at QAR13mn in 2015, and entirely serviced by and grills and fencing (76.4% market share). These products
imports, it is expected to remain a marginal market valued at have greater reliance on the villa segment, which gives them a
less than QAR10mn per annum from 2017 to 2026. fragmented customer base, making it difficult for importers to
penetrate. As against this, products such as the rolling shutters
The 2016 market size and growth rate of the pre-fabricated
and steel flush doors form niche markets, mainly driven by
buildings segment till 2026 points to an average incremental
commercial developments. As a result, major portion of the
opportunity of QAR24.4mn (6,231sqm) per annum, for new
9
Primary Interviews
10
Team Analysis

20 Manufacture of Structural Metal Products


market for steel flush doors (74.4%) and rolling shutters (74.5%) Aluminum and glass works product segment has followed the
would be serviced by imports. In terms of challenges, the real estate development trends. With this product segment,
market is likely to remain significantly competitive and price curtain walls emerge as the largest product13 accounting
sensitive. Imports are likely to remain cheaper than domestic for 65% share, followed by aluminum doors and windows at
production and further heighten the challenges. 30%. Skylight and domes have a small share of 5%. In value
terms, the aluminum and glass works market would grow at a
The given market size and a moderate pace of growth offer an
CAGR of 4.5% from QAR660mn (953,775sqm) in 2016 to reach
opportunity for new players to tap into 806MT worth of average
QAR1,022mn (1,151,172sqm) in 2026.
incremental business every year from 2017 to 2026, subject to
competitive challenges. Subject to competitive challenges, Demand for aluminum sheet cladding works — commonly used
opportunities exist for one medium-sized player (1,800MT in combination with aluminum and glass curtain wall products
per annum installed capacity running at 80% utilization) vv is estimated to grow at a CAGR of 4.5% from QAR141mn
dedicated to architectural steel fabrication works, to enter the (476,888sqm) in 2016 to reach QAR218mn (575,586sqm) in 2026,
market every two years. Steel flush doors and rolling shutters mainly driven by commercial developments, public buildings
are dominated by imports and form hard-to-penetrate niche and multi-story residential buildings.
markets. New entrepreneurs can focus on products such as
Primary interviews with aluminum and glass fabrication units
entrance gates, decorative gates, staircase railings, and grills
indicate that due to the high cost of operations and raw
and fencing products. To augment their product portfolio, they
material expenses owing to the reliance on imports of glass,
can also consider taking up small structural steel fabrication
Qatar’s production is not cost competitive. Hence, aluminum
job orders.
and glass works, and aluminum sheet cladding works are
In the medium to long term, the strengths and the opportunities not exported.
outweigh the threats due to a sizable market opportunity,
Aluminum doors, windows and partitions market is a small
pivvvpeline of upcoming projects in Qatar, fragmented
market estimated at QAR77mn in 2016. It is likely to grow at a
customer base (villa projects), scope for differentiation11 on
CAGR of 3.4% to reach QAR111mn in 2026. As raw material used
account of design and creativity, and the localized nature of
(aluminum extrusion) is locally available, export opportunity
the product.
is estimated at 9.5% of the domestic production between
Architectural Aluminum Fabrication Segment Overview: 2016 and 2026. Aluminum staircase railings and fencing is a
Architectural aluminum fabrication includes aluminum and marginal market valued at QAR16mn in 2016 and set to reach
glass works (aluminum and glass doors and windows, curtain QAR24mn in 2026, pacing at CAGR of 4.3%. Given the low-
walls, skylights and dome), aluminum sheet cladding works, entry barriers, widespread applications within architectural
aluminum staircase handrails and fencing, and solid aluminum aluminum fabrication and a large market size, this has been
doors, windows and partitions. an attractive sector for Qatari entrepreneurs. The market is
fiercely competitive, with several firms operating in the market
Architectural aluminum fabrication emerges as the second
and each targeting the same project.
largest segment constituting 21.4%12 of the structural metal
products sector. The 2015 architectural aluminum fabrication A large market size and a moderate pace of growth offer
market is sized at QAR1,656mn. Real estate asset classes, such an opportunity for new players to tap into 32,738sqm worth
as villas and multi-story residential developments, commercial of average incremental opportunity every year. Subject to
buildings, public buildings are likely to be the prime driver of competitive challenges, opportunities14 exist for two medium-
architectural products. Key product segments include aluminum sized player (5,000sqm per month installed capacity, running
and glass works (77.2% share), aluminum doors, windows and at 80% utilization) dedicated to architectural aluminum
partitions (4.6% share), aluminum railings and fencing (1.7% fabrication works, to enter the market every three years. New
share) and aluminum sheet cladding works (16.5% share). entrepreneurs focusing on architectural aluminum fabrication
need to target on all products such as aluminum and glass
Qatar has 70 local players in this segment. The average capacity
works, aluminum sheet cladding works, aluminum doors,
utilization for architectural aluminum fabrication segment in
windows and partitions, and aluminum railings and fencing.
2015 was 64.8%. Owing to the slowdown in the construction
sector, the architectural aluminum fabrication market size
reduced by 46.1%, in value terms, from QAR1,656mn in 2015 to
an estimated QAR893mn in 2016. The architectural aluminum
fabrication market is expected to grow at a CAGR of 4.4% from
QAR893mn in 2016 to an estimated QAR1,375mn in 2026.

11,13
Primary Interviews
12,14
Team Analysis

Manufacture of Structural Metal Products 21


1. Introduction

1.1. Sector Overview


Structural metal products are fabricated using semi-finished products such as
angles, channels sections, sheets and plates, etc., 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. The
figure below indicates the high-level value chain15 of the sector.

Figure 1: Metal Fabrication Value Chain

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.

Structural metal products

s Ore
uct
od Pro
pr ce
d ss
he
is

in
Fin

Crude metal is
Semi-finished

processed to yield Metal concentrates


semi-finished products are smelted and
such as angles, refined in furnaces
nin g

channels sections, to yield crude metal.


Refi

plates, profiles, etc.


m et

nd
al p

ga
ro

ti n
d

el
uc

Sm
ts

B i ll o ts
e ts, b
lo o m s, in g

Crude metal undergoes


casting and rolling into
billets, blooms and ingots.

15
Arcelor Mittal Corporate Presentation

22 Manufacture of Structural Metal Products


This sector includes a wide range of finished products that can be classified into product segments, such as structural steel
fabrication works, pre-engineered buildings (PEB), pre-fabricated building, architectural steel fabrication products and architectural
aluminum fabrication products. The illustration below provides detail of the sector and product segments.

Figure 2: Segments under Structural Metal Products

Structural metal products

Architectural
Structural steel Pre-engineered Pre-fabricated Architectural
aluminum
fabrication buildings buildings steel fabrication
fabrication

Pre-fabricated Aluminum & glass


Entrance gates
labor camps works

Aluminum doors,
Pre-fabricated
Decorative doors windows and
private units
partitions

Pre-fabricated Aluminum railing


Steel flush doors
greenhouse and fencing

Aluminum sheet
Rolling shutters
cladding works

Staircase railing

Grills and fencing

Manufacture of Structural Metal Products 23


Architectural metal fabrication comprises products that are used PEBs and pre-fabricated buildings are constructed in modular
for non-load bearing or decorative applications, such as doors segments in a factory and then transported and installed at
and windows, staircase handrails, grills and fencing. Architectural the site. Pre-fabricated buildings use cold-formed sections
metal products can be made from both aluminum and steel. made from galvanized iron slit coils, light gauge steel sections
Steel is used in structural applications in construction projects and various finishing material to build habitable spaces, such
due to its good load-bearing properties, low cost and ease of as labor accommodations, site offices, mosques, majlis, villa
fabrication. Aluminum is not used for structural purposes for extensions, security cabins, etc.
construction projects as it is expensive and difficult to weld as PEBs use steel plates and sheets to fabricate pre-designed
compared to steel. primary and secondary sections for factory sheds, warehouses,
Structural steel fabrication comprises constructing load- hangars, and other industrial and commercial buildings. Based
bearing steel frames (i.e., columns, beams, floors, trusses, etc.) on the above description, this sector can be classified into key
for residential and commercial buildings, industrial facilities product segments and products as shown in the table below.
and other projects.

Table 1. Segments under Structural Metal Products

Structural Metal Product Segments

Product Segment Description

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.

1.1.1. Structural Steel Fabrication


Structural steel fabrication can be defined as the design, fabrication and erection of a steel structure through organized combination
of structural steel members and sections, designed to carry loads and provide a strong and stiff frame16. Structural steel fabrication
comprises fabrication of steel frames used in buildings, construction and infrastructure projects. These include steel frames,
beams, trusses, towers, masts, bridges and bridge sections, sheet piling, sheds and domes. These are highly engineered or
designed products as they are load-bearing elements.
Structural steel sections are used as load-bearing members, such as columns, beams, girders, trusses and portal frame. These
come in various shapes such as I-section, H-section, L-angles and T-sections. Hot-rolled I-sections and steel plates are the most
commonly used raw materials.
Structural steel is extensively used for infrastructure projects, such as metro and train stations, stadiums, bridges, industrial
facilities, low-rise commercial and retail buildings as well as the construction of high-rise buildings.
Common steel varieties used for structural steel are carbon steel and high-strength low-alloy steels. These alloys can be heat
treated (quenched and tempered) for enhanced mechanical properties and also be made corrosion resistant. The physical
properties of steel —high strength, ductility, seismic resistance, elasticity, uniformity of material, ease of fabrication and speed of
erection — make it a preferred choice for structural projects.

16
Steel Construction Encyclopedia

24 Manufacture of Structural Metal Products


Building structural
frame Bridge section Parking shed

Factory shed Metal truss Dome


structural frame

1.1.2. Pre-engineered Buildings (PEBs)


The PEB segment includes fabrication of steel structures built PEBs enable quicker and economical creation of industrial
over a structural concept of primary members, secondary buildings, factory sheds and warehouse infrastructure. They are
members, roof and wall sheeting connected to each other ideal for such structures where the intermediate columns need to
and various other building components. Pre-engineered steel be avoided to enable free movement of goods and machinery.
buildings use a combination of pre-designed sections made PEBs are fabricated based on the end user’s requirement in a
form steel plates and cold-formed sections made from sheets. factory and erected on site, which helps save time. PEBs can be
delivered to a site within five to eight weeks, while conventional
These form the basic steel framework that can be either covered
steel structures can take up to 25 weeks to complete17. The
by a single skin sheeting with added insulation or insulated
unique techniques employed during fabrication help PEBs to be
sandwich panels for roofing and wall cladding. Such PEBs can
up to 30% lighter than regular steel fabrication using hot-rolled
be designed to be fitted with different structural accessories
sections. No welding or fabrication is required at the construction
such as mezzanine floors, canopies, interior partitions and
site, resulting in greater speed and efficiency.
crane systems, among others.

PEB warehouse PEB hangar PEB factory

17
Primary Interviews

Manufacture of Structural Metal Products 25


1.1.3. Pre-fabricated Buildings
Pre-fabricated buildings are constructed in modular segments in a factory and then transported and installed at the site. Walls
of pre-fabricated buildings are load-bearing elements that are constructed from cold-formed sections made from slit coils of
galvanized iron (GI). These sections are covered by gypsum boards and the in-between space in filled with insulating materials
such as rockwool or fiberglass. The wall thickness can be between 100mm and 300mm, depending on the number of floors of the
structure. As pre-fabricated buildings are engineered with load-bearing walls (as against the column-beam frame structure used
in conventional reinforced cement concrete buildings), the maximum height of a pre-fabricated building is seven floors.
Cold-form sections are used to fabricate the roof truss as well. A variety of finishing material can be used for external cladding,
flooring and roofing works. Only steel is used for the construction of the cold-formed sections of pre-fabricated buildings, while
aluminum sheets may be used as an external finishing material on the walls of pre-fabricated buildings.
Pre-fabricated buildings are different from PEBs in terms of raw material and construction technique. Pre-fabricated building use
slit coils of galvanized iron (0.95mm to 2mm sheets) to fabricate sections while pre-engineered buildings use hot-rolled plates
(8mm to 10mm thickness) that are considerably heavier. In case of pre-fabricated buildings, cold-formed GI sections are not
welded, but in case of pre-engineered buildings, steel plates have to be welded to construct the sections.
Pre-fabricated buildings can be used for a variety of applications, such as labor accommodations, site offices, mosques, majlis,
villa extensions and security cabins.
The cost of pre-fabricated buildings is almost the same as traditionally constructed buildings; however, the construction time18
is 40% lesser, hence they can be installed and occupied in a shorter span of time. Modular pre-fabricated units are typically
12mx2.5m in size, which makes it easier to transport.

Pre-fabricated
buildings Security kiosk

Site office

18
Team Analysis and Primary Interviews

26 Manufacture of Structural Metal Products


1.1.4. Architectural Steel Fabrication
Architectural steel fabrication comprises steel products made by designing, cutting, bending, welding and assembling processes.
These products are used for decorative and non-load-bearing applications, such as entrance gates, decorative doors, steel flush
doors, rolling shutters, staircase handrails, and fencing and grills. Architectural steel fabrication products may use decorative
accessories of other metals, such as aluminum and brass.

ors Fire
tee l do -rate
tive s d do
ors
Decora

No
s

n-
ail

fire
dr

-
an

ra
lh

te
d
ee

do
St

or
s
Window grill
De
co

1
r

ate
at
ive

eg
h

nc
an

tra
d ra

En
ils

Roll
ing te 2
shut
ters ance ga
Entr

Manufacture of Structural Metal Products 27


Metal partition

Entrance gates are the main gates installed along the


compound walls of various buildings. Decorative doors are
fabricated with intricate designs and patterns. Steel flush doors
include fire-rated doors installed at the fire staircase and lobby
areas, and non-fire-rated doors for other purposes.
Architectural steel works serve the needs of a variety of projects,
such as villas, multi-story residential buildings, public buildings,
commercial buildings and others.

1.1.5. Architectural Aluminum Fabrication


This segment includes products that are similar to architectural
steel fabrication; however, the metal used here is aluminum
instead of steel. Architectural aluminum fabrication includes
aluminum and glass works (aluminum and glass doors and
windows, curtain walls, skylights and dome), aluminum sheet Fencing
cladding works, aluminum handrails and fencing, and all
aluminum doors, windows and partitions.
Curtain walls are commonly referred to as glass facades or
glazing systems that consist of non-structural cladding systems
for the external walls of buildings19. These are generally
associated with large, high-rise buildings that comprise a
lightweight aluminum frame onto which glass can be fixed.
Skylights consist of roof openings covered with translucent or Stainless steel handrail
transparent glass designed to allow daylight into the building
enclosure20. Often skylight, or a portion of it, functions as an
operating window to admit air, has found wide application in
industrial, commercial and residential buildings. Aluminum
sheet cladding works involve cladding of solid aluminum
sheets or aluminum composite panels (ACP) on external or
internal facades of building.

Aluminum Aluminum
window doors

Curtain wall Skylight Aluminum


sheet cladding

19
Designing Buildings Ltd
20
Encyclopedia Britannica

28 Manufacture of Structural Metal Products


1.1.6. Scaffolding
This segment includes metal scaffolding that are temporary
structures used for supporting formwork during construction
of buildings and are used by workers while building, repairing
or cleaning the building. These bear the load of concrete and
other construction products during construction. The structures
are made using hollow sections, pipes and metal poles.
The scaffolding market21 in Qatar is currently limited to the
provision of solutions and services for design, erection and
dismantling of scaffolding structures. This market is mainly
served by importing scaffolding structures and couplings
these are further rented or leased to construction companies.
Some of the leading companies include PERI, Cape, Doka,
Marcegaglia, Dutco Balfour Beatty and Access Middle East
(ACE), which have their manufacturing facilities outside Qatar
in various locations, such as Saudi Arabia, the UAE, Germany
and Italy. Some of the domestic scaffolding solution providers
include Apollo Enterprises, Malzamat Qatar, KEMCO Coating
& Scaffolding, Affix Scaffolding, Qatar Plant Hire (Division of
Teyseer Group), BICT Qatar, United International Company
and Delmon Scaffolding. Currently, there are no domestic
scaffolding manufacturers based in Qatar. According to
primary interviews, one local firm was set up to manufacture
scaffolding by importing raw materials (hot-rolled coils, ERW
pipes); however, it was unable to succeed in the market.
Scaffolding manufacturing in Qatar is not considered to be
feasible22 due to the following reasons:
1. Business with high volumes and low margins
2. Unavailability of domestic supply of raw materials at
competitive rates
3. Stiff competition from dominant scaffolding service
providers that are well established in the market, making
it difficult to manufacture scaffolding structures using
imported raw materials.

21
Primary Interviews
22
Team Analysis

Manufacture of Structural Metal Products 29


1.2. HS Codes of Product Segments
1.2.1. Structural Steel Fabrication
Table 2. HS Codes of Structural Steel Fabrication Products

HS Codes and Description of Structural Steel Fabrication Products

HS code Product Type Description

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

Structures (excluding prefabricated buildings of heading 94.06) and parts of structures


Steel bridges
(for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing
73081000 and bridge
frame-works, doors and windows and their frames and thresholds for doors; bridges and
sections
bridge sections

Structures (excluding prefabricated buildings of heading 94.06) and parts of structures


Steel towers and (for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing
73082000
lattice masts frame-works, doors and windows and their frames and thresholds for doors; towers and
lattice masts)

Structures (excluding prefabricated buildings of heading 94.06) and parts of structures


Miscellaneous:
(for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing
73089060 steel sheds and
frame-works, doors and windows and their frames and thresholds for doors); others: sheds
domes
and domes

Structures (excluding prefabricated buildings of heading 94.06) and parts of structures


Miscellaneous:
73089090 (for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing
steel others
frame-works, doors and windows and their frames and thresholds for doors); others: other

1.2.2. Pre-engineered Buildings (PEBs)


Table 3. HS Codes of PEBs

HS Codes and Description of Pre-engineered Buildings

HS code Product Segment Description

94060033 PEB Prefabricated buildings of iron: Warehouses

94060043 PEB Prefabricated buildings of aluminum: Warehouses

94060013 PEB Prefabricated buildings of plastics: Warehouses

94060023 PEB Prefabricated buildings of wood: Warehouses

94060053 PEB Prefabricated buildings of fiberglass: Warehouses

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

30 Manufacture of Structural Metal Products


1.2.3. Pre-fabricated Buildings
Table 4. HS Codes of Pre-fabricated Buildings

HS Codes and Description of Pre-fabricated Buildings

HS code Product Sub-segment Description

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

94060019 Pre-fabricated private units Pre-fabricated buildings of plastics: Other

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

94060029 Pre-fabricated private units Pre-fabricated buildings of wood: Other

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

94060039 Pre-fabricated private units Pre-fabricated buildings of iron: Other

Pre-fabricated buildings of aluminum: Greenhouses for


94060041 Pre-fabricated green houses
cultivation purposes

94060044 Pre-fabricated labor camps Pre-fabricated buildings of aluminum: Buildings for residence or school

94060049 Pre-fabricated private units Pre-fabricated buildings of aluminum: Other

Pre-fabricated buildings of fiberglass: Greenhouses for cultivation


94060051 Pre-fabricated green houses
purposes

94060054 Pre-fabricated labor camps Pre-fabricated buildings of fiberglass: Buildings for residence or school

94060059 Pre-fabricated private units Pre-fabricated buildings of fiberglass: Other

94060090 Pre-fabricated private units Pre-fabricated buildings of other materials

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

Manufacture of Structural Metal Products 31


1.2.4. Architectural Steel Fabrication
Table 5. HS Codes of Architectural Steel Fabrication Products

HS Codes and Description of Architectural Steel Fabrication Products

HS code Product Sub-segment Description

Structures (excluding prefabricated buildings of heading 94.06) and parts of


Steel doors and structures (for example, bridges and bridge-sections, lock-gates, towers, lattice
73083000
windows masts, roofs, roofing frame-works, doors and windows and their frames and
thresholds for doors; doors, windows and their frames and thresholds for doors)

Structures (excluding prefabricated buildings of heading 94.06) and parts of


structures (for example, bridges and bridge-sections, lock-gates, towers, lattice
73089050 Steel staircase railing
masts, roofs, roofing frame-works, doors and windows and their frames and
thresholds for doors; other: staircases, fixed)

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

32 Manufacture of Structural Metal Products


1.2.5. Architectural Aluminum Fabrication
Table 6. HS Codes of Architectural Aluminum Fabrication

HS Codes and Description of Architectural Aluminum Fabrication

HS code Product Sub-segment Description

Aluminum structures (excluding pre-fabricated buildings of heading


94.06) and parts of structures (for example, bridges and bridge-sections,
Aluminum doors, windows
76101010 towers, lattice masts, roofs, roofing frameworks, doors and windows and
and partition
their frames and thresholds for doors, bal: doors, windows and their
frames and thresholds for doors: electrically operated doors for garages

Aluminum structures (excluding pre-fabricated buildings of heading


Aluminum staircase railing 94.06) and parts of structures (for example, bridges and bridge-sections,
76109040
and fencing towers, lattice masts, roofs, roofing frameworks, doors and windows and
their frames and thresholds for doors, bal: other: staircases, fixed

Aluminum structures (excluding pre-fabricated buildings of heading


94.06) and parts of structures (for example, bridges and bridge-sections,
Aluminum doors, windows
76109050 towers, lattice masts, roofs, roofing frameworks, doors and windows
and partition
and their frames and thresholds for doors) bal: other: wall partitions for
hospital word, restaurants, offices, bathroom, buildings and the like

Aluminum staircase railing


76169960 Other articles of aluminum; other: other: fencing pillars
and fencing

Aluminum structures (excluding pre-fabricated buildings of heading


94.06) and parts of structures (for example, bridges and bridge-sections,
Aluminum doors, windows
76101090 towers, lattice masts, roofs, roofing frameworks, doors and windows and
and partition
their frames, and thresholds for doors) bal: doors, windows and their
frames and thresholds for doors: other

1.3. Raw Materials


Raw materials used in the manufacture of product segments from this sector include products such as angles, channels, sections,
sheet and plates, which are imported from other countries or procured from local traders. Currently, a small volume of steel
angles, channels, aluminum composite sheets and aluminum profiles are manufactured25 in Qatar. Most aluminum and steel
fabricators26 rely heavily on import of raw material from the UAE, China, India and Turkey.

Table 7. Raw Materials Consumed

Raw Materials Consumed in Metal Fabrication

Product Segment Raw Materials

Architectural and structural


Steel angles, channels, sections, rods, sheets and plates, consumables, paint, etc.
steel fabrication

PEBs Steel plates and sheets, consumables, paint, etc.

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

Manufacture of Structural Metal Products 33


1.3.1. HS codes of Raw Materials
Table 8. HS Codes of Steel Raw Materials

HS Codes of Steel Raw Materials

HS code Product Type Description

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-


72081000 Hot-rolled coils rolled, not clad, plated or coated in coils, not further worked than hot-rolled, with
patterns in relief

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72082500 Hot-rolled coils not clad, plated or coated. Other, in coils, not further worked than hot rolled, pickled:
of a thickness of 4.75mm or more

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72082600 Hot-rolled coils not clad, plated or coated. Other, in coils, not further worked than hot rolled, pickled:
of a thickness of 3mm or more but less than 4.75mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72082700 Hot-rolled coils not clad, plated or coated. Other, in coils, not further worked than hot-rolled, pickled:
of a thickness of less than 3 mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72083600 Hot-rolled plates not clad, plated or coated. Other, in coils, not further worked than hot-rolled: of a
thickness exceeding 10mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72083700 Hot-rolled plates not clad, plated or coated. Other, in coils, not further worked than hot-rolled: of a
thickness of 4.75mm or more, but not exceeding 10mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72083800 Hot-rolled sheets not clad, plated or coated. Other, in coils, not further worked than hot-rolled: of a
thickness of 3mm or more, but less than 4.75mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72083900 Hot-rolled coils not clad, plated or coated. Other, in coils, not further worked than hot-rolled: of a
thickness of less than 3mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72084000 Hot-rolled sheets not clad, plated or coated, not in coils, not further worked than hot-rolled, with patterns
in relief

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72085100 Hot-rolled plates not clad, plated or coated. Other, not in coils, not further worked than hot-rolled: of a
thickness exceeding 10mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72085200 Hot-rolled plates not clad, plated or coated. Other, not in coils, not further worked than hot-rolled: of a
thickness of 4.75mm or more but not exceeding 10mm

34 Manufacture of Structural Metal Products


HS Codes of Steel Raw Materials

HS code Product Type Description

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72085300 Hot-rolled sheets not clad, plated or coated. Other, not in coils, not further worked than hot-rolled: of a
thickness of 3mm or more, but less than 4.75mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled,


72085400 Hot-rolled sheets not clad, plated or coated. Other, not in coils, not further worked than hot-rolled: of a
thickness of less than 3mm

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 600mm or more, cold-rolled


72091500 Cold-rolled coils (cold-reduced), not clad, plated or coated. In coils, not further worked than cold-rolled
(cold-reduced): of a thickness of 3mm or more

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, cold-rolled


72091600 Cold-rolled coils (cold-reduced), not clad, plated or coated. In coils, not further worked than cold-rolled
(cold-reduced): of a thickness exceeding 1mm but less than 3mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, cold-rolled


72091800 Cold-rolled coils (cold-reduced), not clad, plated or coated. In coils, not further worked than cold-rolled
(cold-reduced): of a thickness of less than 0.5mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, cold-rolled


72092500 Cold-rolled coils (cold-reduced), not clad, plated or coated. Not in coils, not further worked than cold-
rolled (cold-reduced): of a thickness of 3mm or more

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, cold-rolled


72092600 Cold-rolled coils (cold-reduced), not clad, plated or coated. Not in coils, not further worked than cold-
rolled (cold-reduced): of a thickness exceeding 1mm, but less than 3mm

Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, cold-rolled


72099000 Cold-rolled coils
(cold-reduced), not 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

Manufacture of Structural Metal Products 35


HS Codes of Steel Raw Materials

HS code Product Type Description

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

36 Manufacture of Structural Metal Products


HS Codes of Steel Raw Materials

HS code Product Type Description

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)

73066100 Hollow sections Of square or rectangular cross-section

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

Table 9. HS Codes of Aluminum Raw Materials

HS Codes of Aluminum Raw Materials

HS code Product Type Description

76042100 Aluminum profiles Aluminum bars, rods and profiles hollow profiles

76042900 Aluminum profiles Aluminum bars, rods and profiles, other

76082000 Aluminum profiles Aluminum tubes and pipes of aluminum alloys

Aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm.: Rectangular
76061200 Aluminum sheets
(including square) : Of aluminum alloys

Manufacture of Structural Metal Products 37


2. Structural Steel
Fabrication

2.1. Qatar Market Overview


Structural steel fabrication is an important part of the structural metal products sector.
It includes the fabrication of load bearing structural frame comprising columns,
beams, trusses, etc., for a wide range of projects, such as factory sheds, warehouses,
infrastructure projects, stadia, real estate development and other industrial sector
projects.
In terms of market size, in 2015, the structural steel fabrication market was valued at
QAR4,107mn27, forming 53.1% of the structural metal products sector that was sized
at QAR7,733mn in 2015.
Due to the slowdown in the construction sector, the market size reduced by 20.9%, in
value terms, from QAR4,107mn in 2015 to QAR3,247mn in 2016.
Qatar has 467 firms in the steel fabrication segment. Most steel fabrication units
have capabilities to undertake both architectural steel fabrication and structural steel
fabrication works.
Qatar’s focus on economic diversification and the development of the SME sector
would offer impetus to the manufacturing sector. Industrial developments are expected
to form28 65% of the market opportunity in the structural steel fabrication market.
Going forward, the structural steel fabrication market is expected to grow at a CAGR
of 4.0% from QAR3,247mn in 2016 to an estimated QAR4,804mn (456,740MT) in 2026.

2.1.1. Demand-Side Analysis


2.1.1.1. Historical and Current Market Size
Between 2001 and 2003, Qatar’s structural steel fabrication market29 was relatively flat,
with demand ranging from 53,243MT to 57,482MT per annum. The steel fabrication
demand received a major boost in 2004, when the market grew nearly 2.88 times in
a single year to reach 165,146MT in 2004, chiefly on account of the new industrial
developments and demands arising from the construction work related to the Asian
Games 2006, such as stadia, The Torch, Doha building and other projects.
Thereon, driven by the increased industrial developments, real estate boom and
Qatar Government’s construction sector spend, the market size grew from strength
to strength, pacing up rapidly at a CAGR of 22.5% to reach 454,995MT in 2009.
Between 2003 and 2008, the global macroeconomic factors drove commodity prices
northward. On the back of buoyant demand, in quantity terms and escalating crude
steel prices, Qatar’s structural steel fabrication market grew nearly 13.8 times in value
terms, from QAR331mn in 2004 to QAR4,547mn in 2009.
The impact of the global financial crisis of 2008 and 2009 on Qatar’s steel fabrication
market size was observed in 2010. Many projects launched during 2004 and 2008
were due for completion in 2008 and 2009, the impact of the slowdown was witnessed
in 2010, with a lag of 12 to 18 months.
In 2009 and 2010, in terms of value and quantity, the market shrank 52.3% and 41.2%,
respectively. This was likely as the demand slowed down and steel commodity prices
crashed simultaneously. The decline continued until 2011, post which the market

27,29
Team Analysis
28
Primary Interviews

38 Manufacture of Structural Metal Products


sentiment started improving due to the Qatar Government’s successful bid for the FIFA World Cup 2022, increasing government’s
expenditure and launch of new projects.
Qatar’s structural steel fabrication market grew from 237,981MT in 2011 to reach an estimated 441,684MT in 2015, registering a
CAGR of 16.7% during this period.
Chart 1. Qatar's Structural Steel Fabrication Demand, 2001 to 2015
700 4,547 5,000

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

Demand Drivers: Demand for structural steel fabrication is 10%


chiefly driven by factory sheds and warehouses, followed by Infrastructure
commercial projects and infrastructure developments (airports,
seaports, metro rail stations, etc.). 15% Real Estate
Customer Segment: Steel fabrication units in the Qatar 31

market opine that civil contractors are the customer segment.


Factory & Warehouses Real Estate Infrastructure Others
As structural steel fabrication products are load-bearing
Oil, Gas, PetroChem, Power, Water Metro Rail Stadium
elements, they are procured by contractors at the construction
commencement stage. Source: Team Analysis, Primary Interviews

30
Team Analysis
31
Primary Interviews

Manufacture of Structural Metal Products 39


Key Influencers: Engineering consultants can influence the The projected market size includes structural steel fabrication
decision on the selection of structural steel fabrication units. work for the metro rail stations and world cup stadia. The
Consultants estimate the steel requirement, choose the demand from metro railway stations would arise in two
specifications, and incorporate them in their designs and phases33 in accordance with their respective construction
tenders. They may evaluate the tender for compliance with schedules: the first schedule during 2015 and 2018, with most
requirements. Primary interviews indicate that apart from cost of it concentrated in 2016 and 2017, and the second schedule
competitiveness, being listed as an approved vendor with during 2022 and 2024. The metro rail project is estimated to
consultants is important. In some cases, business relationships require 198,080MT of structural steel fabrication works. During
(backward integration with steel fabrication units with civil 2016, 2017 and 2022 to 2024, the country is likely to witness
contractors) may also influence the decision. increased opportunities as compared to other years, as most
of the structural steel works for metro rail (phase 1 and phase 2)
2.1.1.4. Demand Forecast are expected to be executed during these years.
Due to the slowdown in the construction sector, the market
For the FIFA World Cup 2022, steel fabrication work for stadium
size32 reduced by 20.9%, in value terms, from QAR4,107mn in
is expected to be executed during 2014 and 2019, with most
2015 to QAR3,247mn in 2016.
of it taking place during 2015 and 2017 where stadia would
Going forward, the structural steel fabrication market is require 104,224MT of structural steel fabrication works.
expected to grow at a CAGR of 4.0% from QAR3,247mn in
2016, to an estimated QAR4,804mn (456,740MT) in 2026.

Chart 3. Qatar’s Structural Steel Fabrication Demand Forecast, 2015 to 2026


700 5,000
4,404 4,471
4,804 4,500
4,107 4,104
600
3,825
4,000

500 3,187 3,356


3,247 3,152 3,500
2,911 2,981
3,000
Thousand MT

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

40 Manufacture of Structural Metal Products


2.1.2. Supply-Side Analysis
2.1.2.1. Market Structure
The structure of Qatar’s structural steel fabrication market that comprises about 467 firms is fragmented. Based on their capacities,
structural steel fabrication firms can be classified as large, medium and small. Most steel fabrication units have capabilities to
undertake both architectural steel fabrication and structural steel fabrication works.

Chart 4. Qatar’s Structural Steel Fabrication Market Structure


and Capacity Utilization
Small-sized Firms
1.0% Small
Based on insights from primary interviews, these firms have 30.4% Large
capacities not greater than 380MT per annum. These units
have less than 10 employees and 30% of their capacities34
focus on structural steel fabrication works for small to mid-
sized projects, such as low-rise residential buildings and
small commercial establishments. Small job orders, such as
roof-over parking areas, small storage sheds, metal roofs on
terraces gardens and other miscellaneous works, are done
by small players. Qatar has 194 such firms who collectively
control 1.0% share35 of the structural steel fabrication sales by
domestic players.

Medium-sized Firms 68.5% Medium


Qatar is home to 263 medium-sized firms, each having an 500,000 100%
average capacity greater than 380MT per annum and less 450,000 90%
than 12,000 MT per annum of steel fabrication per month. The 390,555
medium-sized firms, collectively have 68.5% share of the sales 400,000 80%
by domestic players in volume terms. In case of medium-sized 350,000 64.4% 70%
60.2%
firms, on an average, 82.5% of the capacity is dedicated for
300,000 60%
structural steel fabrication works.
43.1%
MT

250,000 50%
%

185,529
200,000 40%

Large-sized Firms 150,000 30%


100,000 20%
Qatar’s 10 leading firms form the group of large-sized firms. 50,000 8,730 10%
They collectively have 30.4% share36 of the sales by domestic
0 0%
players in terms of quantity and concentrate on structural steel
Large Medium Small
fabrication jobs (92.5% share of the capacity37).
Installed capacity Capacity Utilization (%)
Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of
Industry and Energy Statistics 2015

34, 37
Primary Interviews
35,36
Team Analysis

Manufacture of Structural Metal Products 41


In terms of products and services, the leading players have well-developed capabilities and focus on a wide range of projects,
such as industrial sheds, warehouses, stadia, metro rails and infrastructure. These also have in-house capabilities across the value
chain of steel fabrication, such as designing, estimating and tendering, fabrication and related activities, and erection on site.
In case of highly specialized projects, such as stadia that require specialized expertise in site erection, international contractors
may be appointed for erection work.
Large-sized firms have an average capacity utilization rate of 60.2%, followed by medium-sized firms at 64.2%, with small firms
lagging behind at 43.1%. The overall industry capacity utilization rate is 62.8%38.

Table 10. Structural Steel Fabrication Market Structure Snapshot

Structural steel fabrication Units Large Medium Small Total

Number of players Number 10 263 194 467

Average monthly capacity per player MT 1,671.4 150.0 12.5

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

Capacity per category – structural works MT 185,529 390,555 8,730 584,814

Market share % 30.4% 68.5% 1.0% 100%

Sales MT 111,737 251,502 3,760 366,999

Capacity utilisation % 60.2% 64.4% 43.1% 62.8%

Source: Team Analysis, Primary interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015

2.1.2.2. Profiling of Key Domestic Players


Profiling of key players in the market has been provided below.

Table 11. Structural Steel Fabrication: Key Domestic Players

Year of Installed Capacity


Company Group Key Products/Projects
Establishment (MT per annum)

• Stadia
SOLB26 Al Misnad Group 2007 42,000
• Commercial and multi-story

• Turnkey contracts for high-rise buildings


Qatari Investors • Oil and Gas
Eversendai 2006 24,000
Group • Large industrial plants
• Power plants

• Metro rail, airport, industrial projects


Frijns Qatar Al Faisal Group 2009 and sheds 20,400
• Commercial projects

• Framework for bridges


• Fabrication for metro rail
HBK Contracting
HBK 1970 • Buildings, infrastructure and factory sheds 18,000
Company W.L.L.
• Gates, grill, doors, shutter, windows and
fencing grill

Salam International • Structural Steel Fabrication for metro rail,


Gulf Steel Investments 1989 stadium, airport, industrial, commercial and 12,000
Limited architectural works

38
Team Analysis

42 Manufacture of Structural Metal Products


Year of Installed Capacity
Company Group Key Products/Projects
Establishment (MT per annum)

• 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

• Beams and Columns


• Bridges
Qatar Indo
SASCO Group 2006 • Tanks 12,000
Fab
• Gratings
• Equipment parts

• Hot-rolled steel structures


• Warehouses shades
Steel Master NA 2011 • Staircase 6,000
• Gates, grills, handrail, cladding, hangers
• Erection of structural steel works

• 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.

Manufacture of Structural Metal Products 43


2.1.2.4. Domestic Production Competitiveness fabricate and deliver finished products to customers. Due to
Access to inexpensive raw material and to large market this, raw material inventory quantity requirement increases. This
underlines the profitability and feasibility of any industrial increases the short-term interest payments, which adversely
venture. The key factors that influence the competitiveness of affect price competitiveness. Chinese imports reach Qatar in
domestic production of structural steel fabrication units include 25 to 45 days; the same time is required by steel fabrication
raw material, labor, market size and the impact of competition. units to locally produce finished goods.

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

Chart 5. Qatar’s Structural Steel Fabrication Imports, 2001 to 2015


350 2,500
2,225

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

44 Manufacture of Structural Metal Products


Structural steel fabricated products imported by Qatar in
2015 include bridges and bridge sections (49%), sheet piling
(36%), steel towers and lattice masts (8%) and steel sheds and
domes (4%)

Chart 6. Structural Steel Fabrication Imports by Products,


2015
3% Others
4%
Steel sheds and domes 49%
Steel bridges and
8% bridge sections
Steel towers and
lattice masts
Structural Steel
Fabrication
Imports
76,349 MT

36% Sheet piling


Steel bridges and bridge sections Sheet piling
Steel towers and lattice masts Steel sheds and domes Others
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%.

Chart 7. Qatar’s Structural Steel Fabrication Exports, 2001 to 2015


8 400
360
7 337 350
316
6 279 300

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)

Source: ITC Trademap, Team Analysis

39
ITC Trademap

Manufacture of Structural Metal Products 45


Export segmentation: Key structural steel products exported
from Qatar include bridges and bridge sections that accounts
for 71% share of exports, followed by steel sheds and domes
(15%), sheet piling (5%), steel towers and lattice masts (3%).

Chart 8. Structural Steel Fabrication Exports by Products,


2015

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

Steel bridges and bridge sections Steel sheds and domes


Others Sheet piling Steel towers and lattice masts
Source: ITC Trademap, Team Analysis

2.1.3.2. Trade by Source and Destination


Imports: The analysis of structural steel fabricated products imports40 amounting to 661,806MT from 2010 to 2015 indicates that
the UAE (32%), Saudi Arabia (26%), Turkey (9%) and China (5%) are the major sources of structural steel imports.

Chart 9. Key Sources of Structural Steel Fabrication Imports, 2010 to 2015


100% 100%

90% Rest of the World 90%

80% China 80%

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

46 Manufacture of Structural Metal Products


The area graph shown above indicates that the share of top five countries reduced from 87.4% in 2012 to 60.6% in 2015. The
increasing share of the rest of the world since 2012 indicates that Qatar-based importers are increasingly looking at newer sources
for importing structural steel fabrication products. Key sources of imports that have dominated across past six years are the UAE
and Saudi Arabia.
Exports: The analysis of structural steel fabricated product exports41 from Qatar amounting to 23,416MT from 2010 to 2015
indicates that the UAE (38%), Saudi Arabia (31%), Korea (8%) and Kuwait (7%) are the major destinations for structural steel exports.

Chart 10. Key Destinations for Structural Steel Fabrication Exports, 2010 to 2015
100% 100%

Rest of the World


90% 90%

80% Kuwait 80%


Kenya
70% 70%
South Korea
60% 60%

50% 50%
Saudi Arabia
40% 40%

30% 30%

20% UAE 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 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

Manufacture of Structural Metal Products 47


2.1.3.3. Share of Imports in Domestic Consumption
Between 2001 and 2006, about 81% to 91% of Qatar’s steel fabrication requirements, in quantity terms, were met by imports.
On the back of rapid market growth during 2003 and 2008, the widening demand–supply gap during this period drove the
establishment of new domestic units. The share42 of imports in consumption fell steadily from 91% in 2005 to 17% in 2015.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

2.1.3.4. Assessment of Export Opportunities 2.1.3.5. Trade Forecast


Primary interviews indicate that due to high cost of operations, Imports: The import forecast of structural steel fabrication
Qatar’s production is not cost competitive and hence, steel indicates that about 33% to 38% of the market requirements
fabrication units do not consider exports as an opportunity. (in quantity terms) would be met by imports. Primary interviews
Exports are most likely to be limited to rare opportunities indicate that imports from Saudi Arabia, the UAE, China
where Qatari civil contractors win international projects and and Turkey are about 25% to 40% cheaper than domestic
plan to source from in-house Qatar-based steel fabrication production. Import quantity is expected to reach 149,619MT
units or multinational players. For example, Eversendai may in 202643.
source from its Qatar units to meet the demand arising at its
steel fabrication units in other countries.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

42, 43
Team Analysis

48 Manufacture of Structural Metal Products


Exports: The analysis of recent trade data44 and domestic production estimates indicate that 2.15% of domestic production
has been exported from Qatar. The ten-year export forecast of structural steel fabrication indicates that exports may offer less
opportunity. Approximately 1.8 to 2.2% of the domestic production (in quantity terms) can be exported45 during 2016 and 2026.
Primary interviews indicate that Qatar’s production is not cost competitive and hence, steel fabrication units do not consider
exports an opportunity. Exports are likely to range from 5,053MT in 2016 to 6,911MT in 2026.

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

Domestic Sales Exports Production % Share of Exports


Source: Team Analysis, ITC Trademap

2.1.4. Demand–Supply Analysis


Considering the fact that there are 467 firms46 operating in the market, the installed capacity is 584,814MT per annum, which does
not include assumptions for new players having plans to enter the market that have not been announced so far. Comparing with
the market size estimates (incl. imports projection), the demand–supply gap points toward an oversupply of 184,043MT in 2019
that is expected to reduce to 128,073MT in 202647.

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.

Figure 3: Structural Steel Fabrication Cost Component


Labor Fire protection Transportation
30% to 40% 10% to 15% 1%

Steel Construction (erection) Design Others


30% to 40% 10% to 15% 2% 2%
Source: Primary Interviews

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.

50 Manufacture of Structural Metal Products


Chart 15. Qatar’s Structural Steel Fabrication Selling Prices Forecast, 2014 to 2026
14,000
12,300
12,000 11,748
11,220
10,388 10,716
10,091 10,235
9,775
10,000 9,037 9,336
8,916
8,516
8,133
8,000
QAR/MT

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

Selling Price (Domestic) Selling Price (Imports)


Source: Team Analysis, Primary Interviews

2.1.6. Regulatory Analysis Ministry of Environment: Steel fabrication units need to be


Qatar Construction Specifications (QCS) 2014: As steel approved by the Ministry of Environment.
fabrication products are used in the construction sector, their Civil Defense Department (Ministry of Interior): All building
production, installation and usage are mainly regulated as per materials products need an approval from the Civil Defense
the following sections of QCS 2014. Department (Ministry of Interior) as per Emiri Decree No.
a) QCS 2014 Section 16: Structural Steelworks 9/2012. Steel fabrication units have to comply with applicable
This section has general instructions and regulations fire safety norms.
related to materials, drawing, fabrication, welding, ISO Certification: Obtaining ISO certifications (Quality 9001,
bolting, accuracy of fabrication, erection, accuracy of OHSAS 18001 and Environment 14,001) are vital for tendering
erected steel work and protected treatment. purposes.
b) QCS 2014 Section 17: Metal Work Apart from the above mentioned conditions, all prospective
This section has general instructions and regulations entrepreneurs need to follow applicable laws on company
related to material classification, metal doors and registration, industrial license, obtaining land and building
windows, architectural metalwork, light metal support, permissions to set up a steel fabrication facility in Qatar.
cladding support and workmanship.
In addition to the above, steel fabrication units need to be
familiar with other relevant sections of QCS that regulate
construction activities having an interface with steel fabrication
products. These sections include section 13 (Masonry), section
14 (Roofing), section 4 (Foundation and retaining structures)
and section 5 (Concrete).

Manufacture of Structural Metal Products 51


2.1.7. SWOT Analysis and Michael Porter’s Five Forces Analysis
2.1.7.1. SWOT Analysis
Figure 4: Structural steel Fabrication SWOT Analysis

Structural Steel Fabrication

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.

52 Manufacture of Structural Metal Products


2.1.7.2. Michael Porter’s Five Forces Analysis
Figure 5: Michael Porter’s Five Forces Model (Structural Steel Fabrication)

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

Manufacture of Structural Metal Products 53


2.2. Critical Success Factors
Critical Success Factors include the following:
Figure 6: Critical Success Factors - Structural Steel Fabrication

Access to Raw Material


Raw material forms a major part of the costs incurred
by steel fabrication units. Costs related to these are
influenced by global trends in the commodity prices.
Entrepreneurs are unlikely to have any control on
raw material prices. Hence, competitiveness49 in
procurement and compliance with good practices
in raw material and inventory management, such as
economic order quantity and just in time, are essential. Access to Markets and Strategic
Linkages with Civil Contractors
Entrepreneurs need to develop a
strong relationship and strategic
linkages with civil contractors as
this would help sustain a steady
order book.

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

54 Manufacture of Structural Metal Products


High High High

Access to markets and Customer Investment in


strategic linkages service machinery

Access to Operational Technical


raw material efficiency know-how

Medium Medium Medium

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

Manufacture of Structural Metal Products 55


3. Pre-engineered
Buildings

3.1. Overview of PEBs


PEB is a metal shell utilizing three distinct product categories, namely (1) built-up
‘I’ shaped primary structural steel framing members (columns and rafters); (2) cold-
formed ‘Z’- and ‘C’-shaped secondary structural steel members (roof purlins, eave
struts and wall girts); and, (3) corrugated sheets made of steel (roof and wall panels).

3.1.1. Components of PEBs


Figure 7: Key Components of PEBs

Primary Structure (columns and rafters)


• Primary structure is the most
important part of PEBs. It bears the
major load of the building
• Assembled columns and rafters make
the frame of the building. All other
parts of the building are fixed on it
• This structure is designed using
advanced software, such as STAAD
PRO and Tekla.

Secondary Structures (‘C’ and ‘Z’ purlin


frames, girts and eave struts)
• Purlin, girts, eave struts, etc., are
secondary members of structural
framing
• Purlins act as struts that help in
resisting wind and earthquake loads,
and increase the frame capacity
by providing lateral bracing to the
main frame.

Decking Sheets (‘G’ panel)


• Decking sheets are used for flooring.
For intermediate floors, a metal
decking sheet is fixed to purlins and
concrete is poured over it
• Deep-ribbed type ‘G’ panel is used
as deck paneling for mezzanines and
floor systems
• They are available in 0.7mm
pre-galvanized coating on steel.

56 Manufacture of Structural Metal Products


3.1.2. Applications of PEBs
Figure 8: Applications of PEBs

Factories, Industrial Buildings and Warehouses


• PEB factories, industrial buildings and warehouses consist
of primary and secondary steel frames
• PEBs enable quicker and economical creation of industrial
buildings, factory sheds and warehousing infrastructure
• They are ideal for factory sheds, buildings and warehouses
where the intermediate columns are avoided to enable
free movement of goods and machinery
• PEBs are fabricated to an end user’s requirement in a
factory and erected at site, which saves time.

Commercial Buildings (showroom, exhibition hall) and


Shopping Malls
• PEBs are ideal for showrooms, airports, exhibition halls,
etc., due to their esthetic flexibility
• They are ideal for buildings in city area where land cost
is too high, since they use lesser footprint area than RCC
buildings
• Shopping malls tend to undergo expansion over a period
of time; PEBs enable expansion based on the current
structure.

Others (aircraft hangars, indoor stadiums,


platform shelters, etc.)
• Aircraft hangars with integrated hangar and hangar door
are beneficial since the building header is structurally
designed to carry the door system, roof system and their
respective reactions and loadings
• PEBs are ideal for buildings that need to be relocated to
other places.

Manufacture of Structural Metal Products 57


3.1.3. Benefits of PEBs vs Conventional Steel Buildings
Figure 9: Benefits of PEBs53 vs Conventional Steel Buildings

PEBs Conventional Steel Buildings

• Primary steel structures have


• PEB structures utilize steel constant cross sections, regardless
efficiently with different types of of the varying magnitude of local
columns and rafters stresses along the member length
• Weight is reduced by 30% • Weight is high due to a high safety
Structure
through the efficient use of steel factor and the usage of heavier
steel sections
• Secondary structures are made
with lightweight roll-forming • Secondary structures are made with
‘Z’- or ‘C’-shaped purlins standard hot-rolled sections, which
are relatively more heavier

• Design is esthetically appealing • Special esthetic designs for steel


• Specialized computer analysis buildings have to be specially
design programs optimize the modeled
Design materials required • It is designed from the scratch, and
• Drafting is computerized using requires substantial engineering and
standard details to minimize the detailing work by the consultant with
use of project custom details fewer design aids

• Average delivery time is • Average delivery time is 22 to 28


6 to 8 weeks weeks
Delivery • Erection process is faster and • Erection process is slow; it requires
much easier with very less extensive use of field labor and
requirement for equipment heavy equipment

• It has a simple design, is easy to • It requires extensive, heavy


construct and is lightweight due foundation on account of higher
Foundation
to lower deadweight of the deadweight of the super structure
super structure (i.e., heavy beams)

• The initial cost of PEB steel


buildings is lower (cost per • Special design and features need
Price sqm is about 30% less than the to be developed for each project at
conventional structures) and higher costs
delivery is faster

• All components are specified • Components are custom designed


and designed specially to for a specific application on a
act together as a system for specific job. Design and detailing
Performance
maximum efficiency, precise errors are possible while assembling
fit and peak performance in the diverse components into unique
the field buildings

53
PEBSteel

58 Manufacture of Structural Metal Products


3.2. Qatar PEB Market Analysis
3.2.1. Demand-Side Analysis
3.2.1.1. Historical and Current Market Size
Qatar’s market size for PEBs in terms of volume was estimated at 33,732MT and was valued at QAR201.8mn in 201554. The
PEB market registered a steady growth in terms of volume since 2009, driven by the demand for manufacturing facilities and
warehouses from the industrial and commercial segments. However, volatility in steel prices led to fluctuations in the market
values between 2007 and 2015.
Between 2010 and 2015, the market grew at a Compound Annual Growth Rate (CAGR) of 17.2% in terms of volume and 19.9% in
terms of value driven by the increased demand for PEBs from construction projects such as factory sheds for QDB’s Jahez scheme,
warehouses, airport expansion project, hangers, etc.

Chart 16. Qatar’s PEB Demand, 2001 to 2015


40 250
223.3
216.6
201.8 225
35

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

Manufacture of Structural Metal Products 59


3.2.1.3. Demand Drivers Manateq’s SEZs
One of the major demand drivers for the PEB industry is the Manateq is promoting three SEZs in Qatar. These are expected
government’s increased focus on economy diversification, by to give a boost to the manufacturing and industrial sectors. New
promoting the manufacturing sector and SMEs, which would industrial developments are expected to drive the demand for
result in increased construction of factory sheds, industrial PEBs. Details related to the upcoming SEZs are as follows:
buildings, etc., in Qatar. Moreover, Manateq’s special economic SEZ 1: Ras Bufontas; Location: adjacent to Hamad International
zones (SEZs) would provide a boost to set up factory sheds and Airport. Sectors: Healthcare and medical devices; aerospace
industrial buildings, thus driving the demand for PEBs. and automotive; advanced technology; logistics; and business
In addition, the increasing demand for modern warehousing services.
is among the top demand drivers for PEB structures. The SEZ 2: Um Alhoul; Location: adjacent to Hamad Port, next to
demand is expected to be driven by the logistics and retail the Mesaieed Industrial City.
sectors, which require large PEB structures such as warehouses
and retail space. Further, demand from power plant structures, Sectors: Marine industries; logistics; electrical and machinery;
factory buildings, commercial buildings (offices and retail malls) food and beverages; building materials, metals and materials;
and metro stations, etc., would increase the demand for PEBs. and, downstream petrochemicals.

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.

3.2.1.4. Demand Forecast


The demand for PEBs in Qatar is forecast to reach 42,485MT in volume terms and QAR317.8mn in value terms in 202655. The PEB
market size in volume is expected to witness an 8% decline in 2016 due to volatility in crude oil prices that resulted in stalling of
certain industrial and infrastructure projects as the government tries to cut down expenses until crude oil prices stabilize. With
the anticipated recovery in crude oil prices post 2016, the market is forecast to grow at a CAGR of 3.2% from 31,009MT in 2016 to
reach 42,485MT until 2026.

Chart 18. Qatar’s PEB Demand Forecast, 2014 to 2026


60 350
317.8
294.1
50 272.1 300
251.7
232.8 250
215.3
40 201.3
201.8 187.5
Thousand MT

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

60 Manufacture of Structural Metal Products


3.2.2. Supply-Side Analysis
3.2.2.1. Market Structure
There are several players in Qatar that are engaged in the manufacturing of PEBs; however, there is only one player (BSI Steel
based in Qatar with about 250 employees) that has a manufacturing facility dedicated entirely for PEBs. BSI Steel has a total
production capacity of 20,000MT per annum and currently its utilization rate is at 60%. On account of growing demand for PEBs
in Qatar, BSI’s capacity utilization increased steadily from 35% in 2010 to 60% in 2015.
The other manufacturers include domestic steel fabrication firms that manufacture PEBs as part of their overall product portfolio.
International players operating in Qatar serve the market mainly through imports from Kuwait, Turkey, the UAE, Saudi Arabia,
China and India.
BSI Steel is the market leader with 35% share of the market followed by Kirby Building Systems with 19% share that serves the
market through imports. Domestic steel fabricators, such as Al Wadi Steel and KBC Engineering, also manufacture PEBs as part
of their product portfolio and account for 27% share of the market. Other players in the market, such as Zamil Steel and Mabani
Steel, serve through imports from their manufacturing facilities in Saudi Arabia and the UAE.

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

Manufacture of Structural Metal Products 61


3.2.2.2. Profiling of Key Domestic Players Apart from BSI Steel, most of the players, such as Kirby Building
BSI Steel: Established in 2006, it is the only organized player Systems, Zamil Steel, Mabani Steel and Mammut Building
with a dedicated PEB manufacturing facility in Qatar. Its head Systems, are serving the market through imports. They mainly
office and plant are located in the New Industrial Area in Doha. benefit from being industry leaders in the GCC market and also
Its facilities include a canteen, clinic, office space and an have access to raw materials at a lower price in the UAE and
area of 9,000sqm plant facility, totaling up to 10,000sqm. BSI Saudi Arabia as compared to Qatar where the majority of the
Steel is ISO 9001:2008 certified. It sells directly to customers steel plates and sections are imported into the country. Being a
(contractors). Key clients include companies from the local supplier, BSI Steel currently benefits from local expertise and
construction, warehousing and oil and gas sectors. access to major projects in Qatar. Its large-scale manufacturing
facility, experience in the domestic market and quick turnaround
Table 12. PEB: Key Domestic Players time make it a preferred supplier for various industrial and
commercial projects in Qatar. Construction companies are in full
Installed
Year of swing in order to complete their projects before the deadlines for
Key Players Product Portfolio capacity
Establishment the FIFA 2022, metro rail and SEZ, which make PEBs a preferred
(MTPA)56
choice of structures for warehousing and factories for its quick
BSI Steel 2006 • PEBs 20,000 construction ability.

• PEBs Thus, having strategic linkages with construction companies,


• Structural which can ensure a steady flow of contracts, as well as having well-
Al Wadi equipped manufacturing facilities is a key requirement for any
1971 steel works 12,000
Contracting new entrepreneur intending to set up a PEB manufacturing unit.
• Pre-fabricated
buildings
3.2.2.4. Domestic Production Competitiveness
• PEBs Access to inexpensive raw material and to large market underlines
Steel • Structural the profitability and feasibility of any industrial venture. Key factors
Engineering 2013 steel works 6,000 that influence the competitiveness of domestic production of
Technology • Pre-fabricated PEBs include raw material, labor, market size and impact of
buildings competition.
• PEBs Raw Material: Qatar does not domestically produce raw materials,
• Structural such as steel plates. The raw material production capacity is
KBC underdeveloped, limited to small sections (less than 80mm).
1987 steel works -
Engineering Hence, PEB manufacturers in Qatar depend on imports to meet
• Aluminum
fabrication their raw material needs.

• 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.

62 Manufacture of Structural Metal Products


3.2.3. Trade Analysis
3.2.3.1. Historical Trade Analysis
In 2015, Qatar’s import of PEBs amounted to 12,772MT and was valued at QAR73.4mn57. The imports grew 101% in terms of
volume and 91% in terms of value over the previous year, driven by construction of new warehouses and factory sheds in Qatar.
The import volumes grew at a CAGR of 33.6% between 2010 and 2015.
Exports: In 2015, Qatar’s PEB exports amounted to 40.4MT and was valued at QAR2.9mn58. While the exports grew 63% in terms
of volume over the previous year, its growth by volumes increased at a CAGR of 58.8% between 2010 and 2015. The trend in
exports depends on domestic manufacturers securing projects outside Qatar. In 2012, BSI Steel secured a project to supply PEBs
to the UAE and Saudi Arabia, and as a result, export volumes peaked at 280MT.

Chart 21. Qatar’s PEB Imports, 2001 to 2015


14,000 73.4 80

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

PEB Imports (Volume, MT) PEB Imports (Value, QAR mn)


Source: ITC Trademap, Team Analysis

Chart 22. Qatar’s PEB Exports, 2001 to 2015


300 3.5

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

PEB Exports (MT) PEB Exports (QAR mn)


Source: ITC Trademap, Team Analysis
57
ITC Trademap
58
ITC Trademap Database

Manufacture of Structural Metal Products 63


3.2.3.2. Trade by Source and Destination
Imports: The analysis of import data from 2005 to 2015 indicates that Kuwait, the UAE, Saudi Arabia, Turkey, Italy and Jordan are
the key sources of imports59. The top-five sources of Qatar’s PEB imports between 2010 and 2015 have been listed in the chart
below. Kuwait accounts for the largest with 67% share of PEB imports.

Chart 23. Key Sources of PEB’s Imports, 2010 to 2015


100% 100%
Rest of the World China
90% India 90%

80% UAE 80%

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.

Chart 24. Key Destinations of PEB’s Exports, 2010 to 2015


100% 100%

90% 90%
Rest of the World
80% 80%

70% 70%
Oman
60% 60%

50% Kuwait 50%


Canada
40% 40%

30% Belgium 30%

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

64 Manufacture of Structural Metal Products


3.2.3.3. Share of Imports in Domestic Consumption
Between 2001 and 2003, the domestic demand was in a relatively stable phase where imports ranged between 23% to 26% of
the market. With the announcement of the 2006 Asian Games in Qatar, construction activities picked up rapidly in 2004. Imports
of PEBs increased almost two-folds since domestic manufacturers were unable to cater to the sudden spike in the demand61.
The rapid market growth and the widening demand–supply gap between 2004 and 2006 supported the establishment of new
domestic units in Qatar. BSI Steel commenced manufacturing PEBs in 2007, as a result, the share of imports servicing the market
fell from the peak of 63% in 2006 to 29% in 2008 and thereon stabilized in the range of 18% to 20% during 2009 and 2014. About
38% of the market was served by imports in 2015.

Chart 25. Qatar’s PEB Imports Vs Domestic Sales, 2001 to 2015


40 100%
34.3 33.7 90%
35
80%
30 28.5 6.3
63% 70%
12.8
59%
Thousand MT

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

Domestic Sales Imports Total % Share of Imports


Source: Team Analysis, ITC Trademap

3.2.3.4. Assessment of Export Opportunities


Primary interviews indicate that Qatar’s production is not cost competitive as compared to other manufacturers based in GCC
countries and hence, PEB manufacturers do not consider exports a significant opportunity as compared to the opportunities in
the domestic market. Exports are most likely to be limited to rare opportunities where Qatari PEB manufacturers win international
projects and their PEB pricing is found to be competitive with local players in export market.

61
Team Analysis

Manufacture of Structural Metal Products 65


3.2.3.5. Trade Forecast
Imports: The import forecast for PEBs indicates that about 23% of the market (in quantity terms) would be serviced by imports.
Although PEBs imported from Kuwait, the UAE and Saudi Arabia are about 15% cheaper than domestic production, primary
interviews indicate that imports are expected to decline on account of local manufacturers serving the domestic demand. Imports
are likely to decline from 12,772MT in 2015 to 9,555MT in 2026.

Chart 26. Qatar’s PEB Imports Forecast, 2015 to 2026


45 42 100%
40
39 90%
40 37
35 36 9.6
34 35 80%
35 33 9.0
32 8.8
31 8.5
8.1 8.3
7.9 70%
30 7.7
7.5
12.8 7.2
Thousand MT

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

Domestic Sales Imports Total % Share of Imports


Source: Team Analysis, ITC Trademap

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.

Chart 27. Qatar’s PEB Exports Forecast, 2014 to 2026


35 20%
33.0
32.0 18%
30 30.9
29.9
28.0 29.0 0.08
27.4 0.07 16%
25.8 26.7 0.07
25 24.9 0.07
23.9 0.06 0.07 14%
0.06 0.06
0.06
Thousand MT

21.0 0.06 12%


20 0.06
0.04 10%
%

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

Domestic Sales Exports Production % Share of Exports


Source: Team Analysis, ITC Trademap
62
Team Analysis

66 Manufacture of Structural Metal Products


3.2.4. Demand–Supply Analysis
The total domestic capacity for PEBs in Qatar is estimated at 35,000MT per annum. Primary interviews suggest that due
to sufficient domestic demand, Seashore Steel is also planning to set up a PEB manufacturing unit with a capacity of
30,000TPA, which is expected to commence production in 2017. Thus, Qatar’s PEB manufacturing capacity is forecast to
reach 78,000MT in 202663.

Chart 28. Qatar’s PEB Demand-Supply Analysis, 2015 to 2026

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

Manufacture of Structural Metal Products 67


The average domestic prices for PEBs are expected to range from QAR5,597 in 2016 to QAR7,618 in 2026, implying a CAGR of
3.1%, while the average import prices are expected to range from QAR5,147 in 2016 to QAR7,006 in 2026, implying a CAGR of
about 2.7%.

Chart 29. Qatar’s PEB Selling Prices Forecast, 2014 to 2026


10,000
9,000 7,618
7,276
8,000 6,949
6,606 6,637
7,000 6,250 6,339
6,054 7,006
6,000 5,597 5,782 6,691
5,522 6,391
QAR/MT

6,075 5,274 6,103


5,000 5,037 5,829
5,748
5,567
4,000 5,147 5,317
5,078
4,850
3,000 4,632

2,000
1,000
0
2014 2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

Selling Price (Domestic) Selling Price (Imports)


Source: Team Analysis, Primary Interviews, World Bank

3.2.6. Regulatory Analysis


QCS 2014: As PEBs are used in the construction sector, their production, installation and usage are mainly regulated as per the
following sections of Qatar Construction Specifications (QCS) 2014:66

a) QCS 2014 Section 16: Structural steelworks


This section has general instructions and regulations related to materials, drawing, fabrication, welding, bolting, accuracy of
fabrication, erection, accuracy of erected steel work and protected treatment.
b) QCS 2014 Section 17: Metal work
This section has general instructions and regulations related to material classification, metal doors and windows,
architectural metalwork, light metal support, cladding support and workmanship.
In addition to the above, steel fabrication units need to be familiar with other relevant sections of QCS that regulate construction
activities that have an interface with PEBs. These sections include section 13 (masonry), section 14 (roofing), section 4 (foundation
and retaining structures) and section 5 (concrete).
The Ministry of Environment: PEB manufacturing units need to be approved by the Ministry of Environment.
Civil Defense Department (Ministry of Interior): All building material products need an approval from the Civil Defense Department
(Ministry of Interior) as per Emiri Decree No. 9/2012. PEB manufacturing units have to comply with the applicable fire safety norms.
ISO Certification: Obtaining ISO certifications (Quality 9001, OHSAS 18001 and Environment 14,001) are vital for the tendering purposes.
Welder Certification: All the welders working in a PEB manufacturing facility have to be certified by a recognized certification
agency, such as the American Welding Society or by a testing, inspection and certification agency, such as Bureau Veritas.
Apart from the above, all prospective entrepreneurs need to follow applicable laws related to company registration, industrial
license, and obtaining land and building permissions for setting up a PEB manufacturing facility in Qatar.

66
Qatar Construction Specifications (QCS) 2014

68 Manufacture of Structural Metal Products


3.2.7. SWOT Analysis and Michael Porter’s Five-Force Analysis
3.2.7.1. SWOT Analysis

Figure 11: PEB SWOT Analysis

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.

Manufacture of Structural Metal Products 69


3.2.7.2. Michael Porter’s Five Forces model analysis
Figure 12: Michael Porter’s Five Forces Model (Pre-engineered Building)

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.

70 Manufacture of Structural Metal Products


3.3. Critical Success Factors
Critical Success Factors include the following:
Figure 13: Critical Success Factors - Pre-engineered Building

Access to Raw Material


Raw material such as steel plates and sections form a major part of
the costs incurred by steel PEB manufacturing units. Costs related to
these are influenced by global trends in the steel prices. Entrepreneurs
are unlikely to have any control on raw material prices. Hence,
competitiveness in procurement and compliance with good practices
in raw material and inventory management, such as economic order Access to Markets and
quantity and just in time, are essential. Entrepreneurs need to source Strategic Linkages with
steel plates and sections from suppliers at competitive prices in order Civil Contractors
to stay ahead of other market players, especially importers.
Entrepreneurs could develop
a strong relationship and
strategic linkages with civil
contractors as this would help
sustain a steady order book.
Operational Efficiency
Efficiency in day-to-day operations,
such as 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) would lead
to standardization of procedures,
bring in checks and balances into
the operations, 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, use of latest PEB software for design, detailing,
costing and drafting of PEBs are important to execute
significantly complex projects with optimum efficiency
and minimal errors. It would enable PEB firms to stay
ahead of the competition as well as deliver world-class
services to its customers.

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.

Manufacture of Structural Metal Products 71


High High High

Access to markets and Customer Investment in


strategic linkages service machinery

Access to Operational Technical


raw material efficiency know-how

Medium Medium Medium

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.

72 Manufacture of Structural Metal Products


Manufacture of Structural Metal Products 73
4. Pre-fabricated
Buildings

4.1. Qatar Market Overview


Pre-fabricated buildings offer several advantages as they are easy to construct, install
and disassemble. Pre-fabricated buildings are economic and have a long lifespan
of 15 to 20 years. They have a wide range of applications in labor accommodations,
private units (site offices, mosques, majlis, villa extensions and security cabins) and
greenhouses.
Qatar’s pre-fabricated buildings market was valued at QAR806mn in 201567,
constituting 10.4% of the overall structural metals sector. Pre-fabricated buildings
for labor accommodation forms the largest segment, with a market share of 58.6%,
followed by private units with 39.8% share and greenhouses accounting for 1.6% share.
Qatar has 20 manufacturing units in this segment, of which a few large players have
83.2% share in the sales by domestic players followed by medium-sized players and
small players that command 11.8% and 5% share, respectively. Pre-fabricated labor
accommodations and pre-fabricated private units have minor export opportunities
but pre-fabricated greenhouses are not exportable. The following sections of the
report provide a detailed market analysis on each of these products.

Chart 30. Pre-fabricated Buildings Market Segmentation, 2015

1.6% 58.6%
P-FAB Greenhouses P-FAB labour camps

Pre-fabricated
buildings
market
QAR806mn

39.8%
P-FAB Pvt. Units

P-FAB labour camps P-FAB Pvt. Units P-FAB Greenhouses


Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and
Competed Building Statistics

67
Team Analysis

74 Manufacture of Structural Metal Products


Pre-fabricated Labor Accommodation

Site office

Pre-fabricated
greenhouses

Pre-fabricated
Private Units

Mosque

Security cabin

Manufacture of Structural Metal Products 75


4.1.1. Pre-fabricated Labor Accommodations 4.1.1.1.2. Demand Drivers
4.1.1.1. Demand-Side Analysis Demand Drivers: The demand for pre-fabricated labor
accommodation is chiefly driven by large-scale commercial
Demand for pre-fabricated labor accommodations is driven
and infrastructure development projects, such as new roads,
by large-scale real estate construction and infrastructure
rail lines, hotels and stadiums, which require a substantially
development projects in Qatar. Construction of new roads,
large labor workforce.
buildings, hotels and stadiums in view of the FIFA 2022 World
Cup and the Qatar National Vision 2030 are the dominant Customer Segment: Civil contractors undertaking construction
activities in the construction sector. This has given rise to a of commercial and infrastructure development projects are the
tremendous influx of laborers into Qatar, to complete these customer segment.
projects within the scheduled timelines. Due to the low cost and
Key Influencers: Architects and interior designers can influence
ease of construction, pre-fabricated labor accommodations
the decision on the selection of pre-fabricated buildings.
can be installed and occupied within a shorter span of time
Manufacturers of pre-fabricated buildings have to be listed as
than conventional buildings, thus making them a preferred
an approved vendor with the civil contractors.
option for accommodating the large labor workforce.
4.1.1.1.3. Demand Forecast
4.1.1.1.1. Historical and Current Market Size
The decline in oil prices during 2014 and 2015 is likely to
Between 2001 and 2007, the demand for pre-fabricated labor
affect the development of new projects, thereby dampening
accommodation grew from QAR44.4mn (82,416sqm) in 2001 to
the momentum of construction activities across the country.
QAR172.5mn (196,215sqm) in 2007, growing at a CAGR of 25.4%
The market size is estimated to have reduced by 40.6% from
in terms of value and 15.6% in terms of volume. Market growth
532,937sqm in 2015 to 316,746sqm in 2016.
was driven by new industrial developments and demand from
construction projects related to the Asian Games 2006. The The market for pre-fabricated labor accommodation is
market peaked in 2008 to reach QAR327.6mn (380,265sqm) expected to grow from 316,746sqm in 2016 to an estimated
since many projects launched during 2004 and 2008 were due 360,022sqm in 2026, registering a CAGR of 1.3%. In value terms,
for completion in 2008 and 2009. The impact of the slowdown the market would grow at a CAGR of 3.8% from QAR305.8mn
was witnessed in 2010, with a lag of twelve to eighteen months. in 2015 to reach QAR444.2mn in 2026.
Between 2010 and 2015, the market grew from QAR244.9mn
(255,712sqm) in 2010 to QAR472.4mn (532,937sqm) in 2015 at a
CAGR of 14.0% in terms of value and 15.8% in terms of volume.

Chart 31. Qatar’s Pre-fabricated Labor Accommodation Demand, 2001 to 2015


600 600
472

500 500

400 328 400


343 348
Thousand sqm

339
291
QAR mn

300 260 300


245
533
160
113 172
200 380 200
87
70 315 316 321 326
56 256 272
100 44 214 100
196

82 103 127 149 182


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

76 Manufacture of Structural Metal Products


Chart 32. Qatar’s Pre-fabricated Labor Accommodation Demand Forecast, 2015 to 2026
600 472.4 500
444.2
428.7 450
413.7
500 399.1
385.3
370.4 400
355.6
340.0
321.7 350
400 305.8 306.4
Thousand sqm

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

4.1.1.2. Trade Analysis


4.1.1.2.1. Historical Trade Analysis
Imports: The analysis of historical import data from 2001 indicates that imports have grown as per the real estate development
trends in Qatar. Imports increased from 10,814sqm (QAR5.2mn) in 2001 to 195,718sqm (QAR138.9mn) in 2008. Thereon, imports
have been irregular, rising and falling in alternate years to reach 231,017sqm (QAR148.2mn) in 2015.

Chart 33. Qatar’s Pre-fabricated Labor Accommodation Imports, 2001 to 2015


250 148.2 160
138.9
130.0 130.0 140
200
107.4 120

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

Import Volume Import Value


Source: ITC Trademap, Team Analysis

Manufacture of Structural Metal Products 77


Exports: The analysis of historical export data indicates that exports have been highly irregular and small as compared to the
domestic production. Between 2001 and 2015, the annual exports averaged at 12,330sqm of pre-fabricated labor accommodation.

Chart 34. Qatar’s Pre-fabricated Labor Accommodation Exports, 2001 to 2015


80 40.7 45
33.2
70 40

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

Export Volume Export Value


Source: ITC Trademap, Team Analysis

4.1.1.2.2. Trade by Source and Destination


Imports: The analysis of pre-fabricated labor accommodation imports amounting to 561,530sqm from 2010 to 2015 indicates that
the UAE (46%), China (20%), the KSA (14%), Turkey (14) and Korea (1%) are the major sources of imports.

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.

78 Manufacture of Structural Metal Products


Exports: The analysis of pre-fabricated labor accommodation exports amounting to 153,860sqm from 2010 to 2015 indicates that
the UAE (47%), the KSA (47%), Oman (3%), Iraq (1%) and Kuwait (0.4%) are the major destinations for exports.

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.

4.1.1.2.3. Share of Imports in Domestic Consumption


Share of imports in Qatar’s pre-fabricated labor accommodation market was in the range of 13.1% to 22.1% during 2001 and 2004.
Due to the spike in demand in 2006, the share of imports significantly increased to 81.3% of the market, but declined to the range of
15.2% to 21.8% of the market, between 2007 and 2013 (with the exception of 2008). Domestic players had larger market shares during
2009 and 2014. In 2015, 43.3% of the market was serviced by imports.

Chart 37. Qatar’s Pre-fabricated Labor Accommodation Imports Vs Domestic Sales, 2001 to 2015
600 100%
533
90%
81.3%
500
80%

380 231 70%


400
Thousand MT

196 315 316 321 326 60%


% share

300 272 127 50%


55 256 77 70 43.3%
32 39.1%
30.8% 214 24 40%
196 51.5%
200 182 24.6%
149 30 21.8% 30%
127 56 17.3% 302
82 103 174 11.6% 20%
100 22.1% 185 9.4% 198
238 251
13.3% 126 15.2% 10%
14.1%
72 116 40 260 240
89 110 166 232
0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

Manufacture of Structural Metal Products 79


4.1.1.2.4. Assessment of Export Opportunities
Primary interviews with pre-fabricated building unit manufacturers indicate that, due to high cost of operations, Qatar’s production
is not cost competitive and hence pre-fabricated labor accommodation unit manufacturers do not consider the export market as
an attractive opportunity. Due to high cost of salaries, rents and raw materials, production cost in Qatar is high as compared to
those in other countries in the GCC region. Analysis of export data indicates that during 2011 and 2015, exports of pre-fabricated
labor accommodation averaged at 1.9% of the domestic production.

4.1.1.2.5. Trade Forecast


Imports: The import forecast of pre-fabricated labor accommodation units indicates that about 30.4% of the market requirements
(in quantity terms) will be met by imports. Primary interviews with manufacturers of pre-fabricated buildings indicate that imports
are 8% to 12% cheaper than domestic production, however, domestic manufacturers with their local expertise and quicker delivery
time are expected to capture the bulk of the domestic demand. Imports are likely to range from 96,292sqm in 2016 to 109,448sqm
in 2026.

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

325 332 60%


317 309 316

% 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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

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.

80 Manufacture of Structural Metal Products


Chart 39. Qatar’s Pre-fabricated Labor Accommodation Export Forecast, 2015 to 2026
350 10%
3.46

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

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap

4.1.1.3. Pricing Analysis


Selling prices for pre-fabricated labor accommodation units are quoted on a per sqm basis and vary as per the size; type of
material used for wall construction and flooring; number of floors and amenities such as kitchen, toilet, and storage tanks; which
can be housed within the accommodation. Currently, the 2016 domestic prices for pre-fabricated labor accommodation units are
in the range of QAR1,000 to QAR1,200 per sqm (average QAR1,100 per sqm). On an average, imports are 8% to 12% cheaper than
domestic production. Considering the inflation rates in Qatar, average prices are expected to reach QAR1,406 per sqm in 2026 for
domestic production and QAR840 per sqm for imports.

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

Domestic price Import price


Source: Team Analysis, Primary Interviews

Manufacture of Structural Metal Products 81


4.1.2. Pre-fabricated Private Units 4.1.2.1.2. Market Size Segmentation by Products
4.1.2.1. Demand-Side Analysis Pre-fabricated private units include site offices, mosques,
majlis, villa extensions and security cabins. Mosques constitute
Pre-fabricated private units include site offices, mosques, majlis,
the largest share of the pre-fabricated private units market with
villa extensions and security cabins. The demand for these units
40% share, followed by majlis with 20% share. Site offices and
is driven by both small- and large-scale real estate construction
security cabins account for 15% market share each, followed
and infrastructure development projects. Construction of real
by other units, such as rooms for drivers and maids and villa
estate asset classes such as villas and multi-story residential
extensions, accounting for 10% of the market share.
buildings are likely to be the prime demand drivers for most
pre-fabricated private units.

4.1.2.1.1. Historical and Current Market Size


Between 2001 and 2007, the demand for pre-fabricated
private units grew from QAR30.2mn (35,321sqm) in 2001
to QAR124.3mn (84,092sqm) in 2007, growing at a CAGR of
26.6% in terms of value and 15.6% in terms of volume. Market
growth was driven by new developments and demand from
construction projects related to the Asian Games 2006. The
market peaked in 2008 to reach QAR274.6mn (162,971sqm)
since many projects launched during 2004 and 2008. The
slowdown of 2008 and 2009 led to subdued real estate
development activities in the subsequent years, which reduced
the market size to 109,591sqm in 2010. Thereon, the market
recovered at a slow yet positive pace and is estimated to have
reached QAR321.2mn in 2015 (208,722sqm).

Chart 41. Qatar’s Pre-fabricated Private Units Demand, 2001 to 2015


300 321 350

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

82 Manufacture of Structural Metal Products


Chart 42. Pre-fabricated Private Units Segmentation, by 4.1.2.1.3. Demand Drivers
Volume: Domestic, 2015 Demand Drivers: The demand for pre-fabricated private units
10% is chiefly driven by residential, commercial and infrastructure
development projects such as housing projects, new roads, rail
Others (driver/
maid's room, etc.) 15% lines, hotels and stadiums.
Site offices
Customer Segment: Civil contractors undertaking the
construction of residential, commercial and infrastructure
15% development projects are the customer segment.
Security cabins
PreFAB Key Influencers: Architects and interior designers can influence
private units the decision on selection of pre-fabricated private units.
208,722sqm Manufacturers of pre-fabricated buildings have to be listed as
40% an approved vendor with the civil contractors.
20% Mosque
Majlis 4.1.2.1.4. Demand Forecast
The decline in oil prices in 2014 and 2015 is likely to affect
the development of new projects that are either planned or
underway. This would dampen the momentum of construction
Site offices Mosque Majlis Security cabins activities across the country. The market size is estimated to
Others (driver/maid's room, etc.) have reduced by 35.0% from 208,722sqm in 2015 to 135,748sqm
Source: Team Analysis, Primary Interviews in 2016.
The market for pre-fabricated private units is expected to grow
from 135,748sqm in 2016 to an estimated 154,295sqm in 2026,
registering a CAGR of 1.30%. In value terms, the market would
grow at a CAGR of 3.8% from QAR226.6mn in 2015 to reach
QAR329.1mn in 2026.

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

145 147 149 151 152 154 100


136 133 135 139 142
50
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

Manufacture of Structural Metal Products 83


4.1.2.2. Trade Analysis
4.1.2.2.1. Historical Trade Analysis
Imports increased from 4,305sqm (QAR2.5mn) in 2001 to 61,084sqm (QAR51.0mn) in 2006. Thereon, imports have been irregular,
rising and falling in alternate years to reach 39,480sqm (QAR23.84mn) in 2015. The declining prices of steel along with fierce price
competition in the market led to a sharp decline in import value post 2012, declining from QAR70.5mn in 2012 to QAR23.8mn
in 2015.

Chart 44. Qatar’s Pre-fabricated Private Units Imports, 2001 to 2015


70 80
70.5

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

Import Volume Import Value


Source: ITC Trademap, Team Analysis

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.

Chart 45. Qatar’s Pre-fabricated Private Units Exports, 2001 to 2015


8 6.6 7

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

Export Volume Export Value


Source: ITC Trademap, Team Analysis

84 Manufacture of Structural Metal Products


4.1.2.2.2. Trade by Source and Destination
Imports: The analysis of pre-fabricated private units’ imports amounting to 195,590sqm from 2010 to 2015 indicates that the
UAE (66%), China (13%), India (5%), Turkey (4%) and the US (1%) are the major sources of imports.

Chart 46. Key Sources of Pre-fabricated Private Units Imports, 2010 to 2015
100% 100%

90% Rest of the World 90%


India
80% 80%
Thailand Turkey
70% 70%
China
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 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%

10% Saudi Arabia 10%

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.

Manufacture of Structural Metal Products 85


4.1.2.2.3. Share of Imports in Domestic Consumption
The share of imports in Qatar’s pre-fabricated private units market was in the range of 12% to 13% during 2001 and 2003. Due to
the spike in demand in 2006, the share of imports significantly increased to 67% of the market, but declined to the range of 14%
to 27% of the market, between 2007 and 2015, with the exception of 2011 when the share of imports increased to 38%. Domestic
players had larger market shares during 2007 and 2015.

Chart 48. Qatar’s Pre-fabricated Private Units Imports Vs Domestic Sales, 2001 to 2015

225 209 80%


67%
200 70%
39
175 163
60%
150 22 135 135 138 140
117 50%
Thousand sqm

125 39% 22 110 38% 28 29

% 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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

4.1.2.2.4. Assessment of Export Opportunities


Primary interviews with pre-fabricated building unit
manufacturers indicate that, due to high cost of operations,
Qatar’s production is not cost competitive and hence, pre-
fabricated labor accommodation unit manufacturers do not
consider the export market as an attractive opportunity. Due to
high cost of salaries, rents and raw materials, production cost
in Qatar is high as compared to other countries in the GCC
region. Analysis of export data indicates that across 2010 to
2015, the exports of pre-fabricated private units averaged at
0.9% of the domestic production.

4.1.2.2.5. Trade Forecast


Imports: The import forecast of pre-fabricated private units
indicates that about 24.3% of the market requirements (in
quantity terms) will be met by imports. Primary interviews with
manufacturers of pre-fabricated buildings indicate that imports
are 8% to 12% cheaper than domestic production; however,
domestic manufacturers with their local expertise and quicker
delivery time are expected to capture the bulk of the domestic
demand. Imports are likely to range from 32,997sqm in 2016 to
37,506sqm in 2026.

86 Manufacture of Structural Metal Products


Chart 49. Qatar’s Pre-fabricated Private Units Import Forecast, 2015 to 2026
225 209 50%

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

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

0.98 1.00 1.01 1.02


120 0.92 0.94 0.96 6%
0.92

% 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

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap

4.1.2.3. Pricing Analysis


Selling prices for pre-fabricated private units are quoted on a per sqm basis and vary as per the size, type of material used for wall
construction and flooring, etc. Currently, the 2016 domestic prices are in the range of QAR1,250 to QAR1,900 per sqm (average
QAR1,575 per sqm) for site offices, QAR1,650 to 2,800 per sqm (average QAR2,225 per sqm) for mosques, QAR1,000 to QAR
2,200 per sqm (average QAR1,600 per sqm) for majlis and QAR1,200 to QAR 1,800 per sqm (average of QAR1,500 per sqm) for
security cabins. On an average, imports are 8% to 12% cheaper than domestic production. Considering the inflation rates in Qatar,
average prices are expected to reach QAR2,301 per sqm in 2026 for domestic production and QAR1,612 per sqm for imports.

Manufacture of Structural Metal Products 87


Chart 51. Qatar’s Pre-fabricated Private Units Selling Prices Forecast, 2015 to 2026
2,500
2,194 2,247 2,301
2,093 2,143
1,997 2,044
1,900 1,950
2,000 1,800 1,848
1,757
QAR per sqm

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

Domestic price Import price


Source: Team Analysis, Primary Interviews

4.1.3. Pre-fabricated Greenhouse


4.1.3.1. Demand-Side Analysis
The market for pre-fabricated greenhouses is relatively small and accounts for 1.6% of the total pre-fabricated buildings market.
This sector is serviced by imports since there are no domestic manufacturers specifically focusing on pre-fabricated greenhouses.

4.1.3.1.1. Historical and Current Market Size


There are, currently, no domestic manufacturers of pre-fabricated greenhouses in Qatar, hence the market size is represented
entirely by imports. Between 2001 and 2015, the demand for pre-fabricated greenhouses grew from QAR0.2mn (207sqm) in 2001
to QAR12.4mn (11,855sqm) in 2015, growing at a CAGR of 33.8% in terms of value and 33.5% in terms of volume. The market
growth was driven by the setting up of agro-based facilities such as Arab Qatari Agricultural Production Company, which is
engaged in the production of cut flowers, ornamental plant production of vegetables and flower seedlings. The market peaked in
2014 to reach QAR34.9mn (15,148sqm).

Chart 52. Qatar’s Pre-fabricated Greenhouse Demand, 2001 to 2015


16 15.1 50

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

88 Manufacture of Structural Metal Products


4.1.3.1.2. Demand Drivers
Demand Drivers: The demand for pre-fabricated greenhouses is driven by projects for cultivation of fruits, flowers and vegetables,
in line with the Qatar government’s strategy to enhance the food security of the country, set forth in Qatar National Vision 2030.
Customer Segment: Civil contractors undertaking construction of greenhouse projects are the customer segment.
Key Influencers: Architects can influence the decision on selection of pre-fabricated private units. Manufacturers of pre-fabricated
buildings have to be listed as an approved vendor with the civil contractors.

4.1.3.1.3. Demand Forecast


The market for pre-fabricated greenhouses is expected to grow from 6,041sqm in 2016 to an estimated 6,532sqm in 2026,
registering a CAGR of 0.78%. In value terms, the market is expected to grow at a CAGR of 3.3% from QAR6.6mn in 2015 to reach
QAR9.1mn in 2026.

Chart 53. Qatar’s Pre-fabricated Greenhouse Demand Forecast, 2015 to 2026


15 15
14 12.6 14
13 13
12 12
11 11
10 9.1 10
Thousand sqm

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

4.1.3.2. Trade Analysis


4.1.3.2.1. Historical Trade Analysis
Imports: This increased from 207sqm (QAR0.21mn) in 2001 to 5,211sqm (QAR12.4mn) in 2007. Thereon, imports have been
irregular, rising and falling in alternate years to reach 11,855sqm (QAR12.6mn) in 2015.

Chart 54. Qatar’s Pre-fabricated Greenhouse Imports, 2001 to 2015


16 34.9 40

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

Import Volume Import Value


Source: ITC Trademap, Team Analysis

Manufacture of Structural Metal Products 89


4.1.3.2.2. Trade by Source and Destination
Imports: The analysis of pre-fabricated greenhouse imports amounting to 42,849 sqm from 2010 to 2015 indicates that the
China (55%), Jordan (22%), Italy (8%), Korea (3%) and Netherlands (3%) are the major sources of imports.

Chart 55. Key Sources of Pre-fabricated Greenhouse Imports, 2010 to 2015


100% 100%

90% Rest of the World 90%


South Korea
80% Italy 80%
Netherlands
Jordan
70% 70%

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.

4.1.3.2.3. Share of Imports in Domestic Consumption


Due to lack of domestic manufacturing of pre-fabricated greenhouses, the share of imports has been 100% throughout.

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

Domestic Sales Imports % Share of Imports

Source: Team Analysis, ITC Trademap

90 Manufacture of Structural Metal Products


4.1.3.2.4. Assessment of Export Opportunities
Due to lack of domestic manufacturing of pre-fabricated greenhouses, there are no potential export opportunities. The domestic
market for pre-fabricated greenhouses is small in size to warrant the establishment of a new facility catering entirely to this
segment. Primary interviews with domestic manufacturers indicate that apart from small volumes, import prices are difficult to
compete with, hence none of the local manufacturers currently cater to this segment.

4.1.3.2.5. Trade Forecast


Imports: The import forecast of pre-fabricated greenhouses indicates that 100% of the markets requirement (in quantity terms) will
be met by imports. Imports are likely to range from 6,041 sqm in 2016 to 6,532 sqm in 2026.

Chart 57. Qatar’s Pre-fabricated Greenhouse Import Forecast, 2015 to 2026


14 120%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
12 100%

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

4.1.3.3. Pricing Analysis


Import prices for pre-fabricated greenhouses are in the range of QAR 1,000 to 1,200 per sqm. Considering the inflation rates in
Qatar, prices average prices are expected to reach QAR1,394 per sqm in 2026.

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

Manufacture of Structural Metal Products 91


4.1.4. Supply-Side Analysis
4.1.4.1. Market Structure
Qatar is home to about 20 firms operating in the pre-fabricated building market. Based on the capacities of the firms, they can
be classified as large, medium and small. Most large and medium pre-fabricated buildings firms have capabilities to undertake
fabrication all types of pre-fabricated buildings (labor accommodation, private units, etc.), while small firms focus on construction
of private units such as site offices, security cabins, mosques and majlis.

Chart 59. Qatar’s Pre-fabricated Buildings Market Structure and Capacity Utilization
1,000 100%

11.8% 5.0% 90%

Medium Small 800 80%


692
70%
Thousands sqm

600 57.1% 60%


50%

%
37.5% 35.7%
400 40%
30%
200 150 20%
66
10%
83.2% 0 0%
Large
Large Medium Small

Installed capacity Capacity Utilization (%)


Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015

Small-sized Firms Large-sized Firms

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

There are five medium-sized firms, each having an average


installed capacity of greater than 6,000sqm per annum and
less than 180,000sqm per annum. The medium-sized firms
collectively hold 11.8% share of the market in volume terms
and their average capacity utilization is 37.5%.

68
Primary Interviews

92 Manufacture of Structural Metal Products


Table 13. Pre-fabricated Buildings Market Structure Snapshot

Structural Steel Fabrication Units Large Medium Small Total

Number of players Number 4.0 5.0 11.0 20

Capacity in sqm per month sqm 14,410 2,500 500


Total capacity p.a. sqm 691,680 150,000 66,000 907,680
Sales sqm 395,000 56,250 23,560 474,810

Capacity utilisation % 57.1% 37.5% 35.7% 52.3%

Market share % 83.2% 11.8% 5.0% 100%

Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015

4.1.4.2. Profiling of Key Domestic Players


Table 14. Pre-fabricated Buildings: Key Domestic Players

Installed capacity
Company Year of Establishment Products
(SQM/P.A)

Spacemaker (Subsidiary of Gulf


1976 All types of pre-fabricated buildings 300,000
Contracting Company)

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

Qatar Speed House (Subsidiary


2002 All types of pre-fabricated buildings 100,000
of Aal Imran Housing)

ANG Qatar 2005 All types of pre-fabricated buildings 100,000

Aal Imran Housing 1981 All types of pre-fabricated buildings 40,000

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.

4.1.4.3. Business Model Analysis


The pre-fabricated buildings market is dominated by large players that have the capacity and capability to focus on a varied mix of
products, projects and customers. Large players typically target labor accommodations, security cabins and site office segments,
which are high volume projects having an average project size of 40,000sqm. Large-sized players are typically backed by their
parent companies, which are well-established construction companies, e.g., Spacemaker is a subsidiary of the Gulf Contracting
Company while Qatar Prefab is a part of the Al Hamadi Group. This provides the large-sized firms with financial support, local
expertise as well as access to major projects across the country.
The small- and medium-sized players also target labor accommodation, security cabins and site office segments; however, they
may lack the ability and resources (manpower and machinery) to handle large-scale projects. Hence, they primarily focus on
smaller-scale projects with an average project size of 1,000sqm.
Given the low-entry barriers, widespread application of pre-fabricated buildings and a large market size, pre-fabricated buildings
has been an attractive sector for Qatari entrepreneurs. The market is competitive with several firms operating in the market and
each targeting the same project, the competition to win contracts is intense.

Manufacture of Structural Metal Products 93


4.1.4.4. Domestic Production Competitiveness This increases the requirement for raw material inventory since
Key factors that influence the competitiveness of the domestic manufacturers either have to procure raw materials in advance,
production of pre-fabricated buildings include raw material, adding to the inventory costs or purchase raw materials at
labor, market size and impact of competition. current market rates, which may be higher than the quotations
submitted for job works, adversely affecting their price
Raw Material: Qatar does not domestically produce raw competitiveness.
materials, such as slit coils of galvanized iron. The domestic
raw material production capacity is underdeveloped in the Number of Players: The pre-fabricated buildings market is well
country, hence, manufacturers in Qatar depend on imports to organized with the top-4 players capturing almost 85% of the
meet their raw material needs. market. Medium and small players typically target smaller-scale
projects than those targeted by the market leaders. The market
Our primary research indicates that raw materials are procured being oversupplied is characterized by fierce competition and
from the UAE, the KSA, China, India and Turkey. Expensive price sensitivity.
raw materials significantly impact the cost of domestically
produced finished goods. 4.1.5. Demand–Supply Analysis
High Operational Expenses: Our primary interviews indicate Considering the 20 firms operating in the market, the installed
that the operational costs are significantly high in Qatar due capacity is 907,680sqm per annum. This does not include
to higher labor costs and rent than in the nations exporting assumptions for new players having plans to enter the
to Qatar — Kuwait, the UAE, the KSA, India, China, Turkey, market that have not been announced so far. As per market
etc. This adversely affects the price competitiveness of the size estimates (including imports projection), the demand–
domestic production. supply gap indicates an oversupply of 433,269sqm in 2020 to
393,363sqm in 202669.
Time to Market: According to industry players, procuring raw
material is time consuming, which leaves them with little time
to fabricate and deliver finished products to customers.

Chart 60. Qatar’s Pre-engineered Buildings Demand-Supply Analysis, 2015 to 2026


1,000
908

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

94 Manufacture of Structural Metal Products


4.1.6. Regulatory Analysis The Ministry of Environment: Pre-fabricated buildings
QCS 2014: As pre-fabricated buildings are used in the manufacturing units need to be approved by the Ministry of
construction sector, their production, installation and usage Environment.
are mainly regulated as per the following sections of Qatar Civil Defense Department (Ministry of Interior): All building
Construction Specifications (QCS) 2014:70 material products need an approval from the Civil Defense
a) QCS 2014 Section 16: Structural steelworks Department (Ministry of Interior) as per Emiri Decree No.
This section has general instructions and regulations 9/2012. Pre-fabricated buildings manufacturing units have to
related to materials, drawing, fabrication, welding, comply with the applicable fire safety norms.
bolting, accuracy of fabrication, erection, accuracy of ISO Certification: Obtaining ISO certifications (Quality 9001,
erected steel work and protected treatment. OHSAS 18001 and Environment 14,001) are vital for tendering
b) QCS 2014 Section 17: Metal work purposes.
This section has general instructions and regulations Labor Standards: Pre-fabricated labor accommodations in
related to material classification, metal doors and Qatar need to comply with all the government labor standards
windows, architectural metalwork, light metal support, on minimum space requirements, amenities and other
cladding support and workmanship. mandatory requirements set by Ashghal, Qatar Foundation,
In addition to the above, steel fabrication units need to be Qatar Rail and Supreme Committee for Delivery and Legacy.
familiar with other relevant sections of the QCS that regulate Apart from the above, all prospective entrepreneurs need
construction activities having an interface with pre-fabricated to follow applicable laws related to company registration,
buildings. These sections include section 13 (masonry), section industrial license and obtaining land and building permissions
14 (roofing), section 4 (foundation and retaining structures) and for setting up a pre-fabricated buildings manufacturing facility
section 5 (concrete). in Qatar.

Qatar Construction Specifications (QCS) 2014


70

Manufacture of Structural Metal Products 95


4.1.7. SWOT Analysis and Michael Porter’s Five Forces Model Analysis
4.1.7.1. SWOT Analysis

Figure 14: Pre-fabricated Buildings SWOT 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.

96 Manufacture of Structural Metal Products


4.1.7.2. Michael Porter’s Five Forces Model Analysis

Figure 15: Michael Porter’s Five Forces Model (Pre-fabricated Building)

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.

Manufacture of Structural Metal Products 97


4.2. Critical Success Factors
Following are the critical factors for success:

Figure 16: Critical Success Factors - Pre-fabricated Building

Access to Raw Material


Raw material forms a major part of the costs incurred
by steel fabrication units. Costs related to these are
influenced by global trends in the commodity prices.
Entrepreneurs are unlikely to have any control on
raw material prices. Hence, competitiveness49 in
Access to Markets and Strategic
procurement and compliance with good practices
Linkages with Civil Contractors
in raw material and inventory management, such as
economic order quantity and just in time, are essential. Entrepreneurs need to develop a
strong relationship and strategic
linkages with civil contractors as
this would help sustain a steady
order book.

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.

98 Manufacture of Structural Metal Products


High High High

Access to markets and Customer Investment in


strategic linkages service machinery

Access to Operational Technical


raw material efficiency know-how

Medium Medium Medium

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

Manufacture of Structural Metal Products 99


5. Architectural
Steel Fabrication

5.1. Qatar Market Overview


Architectural steel fabrication emerges as a significant segment of the structural metal
products sector. It serves varied needs of the real estate sector across asset classes
such as villas, multi-story buildings, commercial developments, public buildings and
industrial facilities.
The architectural steel fabrication market constitutes a sizable portion (12.4%) of the
structural metal products sector72. In terms of domestic production value, it has 11.7%
share of the overall structural metal products sector. Key products in architectural
steel fabrication are:
a) Entrance gates
b) Decorative doors
c) Steel flush doors
d) Rolling shutters
e) Steel staircase railing
f) Grills and fencing

Chart 61. Architectural Steel Fabrication Market Segmentation, 2015


15.1%
Entrance Gate

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

Entrance Gate Decorative doors Steel flush doors


Rolling Shutter Staircase railing Grill and fencing
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and
Competed Building Statistics

The 2015 architectural steel fabrication market73 is estimated at QAR961mn. Real


estate asset classes, such as villas and multi-story residential developments, are likely
to be the prime driver of most architectural products. Key products include grills and
fencing (38.5%), steel staircase railing (26.3%), entrance gates (15.1%) and decorative
doors (9.7%). Going forward, the market is expected to grow at a CAGR of 3.7% to
reach an estimated QAR909mn in 2026.

72,73
Team Analysis

100 Manufacture of Structural Metal Products


The structure of Qatar’s steel fabrication market that comprises 467 firms is fragmented. Most steel fabrication units have
capabilities to undertake both architectural steel fabrication and structural steel fabrication works. Based on the capacities of the
architectural steel fabrication firms, they can be classified as large, medium and small. Medium-sized firms have 70% share of sales
by domestic players followed by small-sized players and large-sized layers that have 20% and 10% share, respectively.
The subsequent sections of the report provide a detailed market analysis of each of the products listed above.

5.1.1. Entrance Gates


Entrance gates are the main gates installed along the
compound walls of buildings. These serve an important
purpose of securing the building and its occupants as well as
controlling ingress into the compound premises.
Entrance gates are fabricated from steel sheets, plates, rods
and sections. A variety of entrance gates are available in
different sizes, shapes, designs, apart from accessories made
of other metals, such as brass and aluminum.

5.1.1.1. Demand-Side Analysis


5.1.1.1.1. Historical and Current Market Size
The market size for entrance gates has followed the real estate
development trends. The market size grew from 19,311sqm
(QAR13.2) in 2001 to a peak of 78,918sqm (QAR103.6mn) in
2008, implying a CAGR of 22.3%. The slowdown of 2008 and
2009 led to subdued real estate development activity in the
subsequent years that reduced the market size to 54,093sqm
in 2011. Thereafter, the market recovered and is estimated to
have reached 116,836sqm in 2015 (QAR145.2mn).

Chart 62. Qatar’s Entrance Gates Demand, 2001 to 2015


150 150
145
140
135
130
120 120
104 106
110 100
92 105
100
Thousand sqm

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

Manufacture of Structural Metal Products 101


5.1.1.1.2. Market Size Segmentation by Products
Entrance gate for villas is the largest segment accounting for
86% of the demand74. Villas constitute 45% of upcoming real
estate developments in Qatar and have high consumption
rates (sqm of entrance gate consumed per 1,000sqm of built-
up area) of entrance gates. Multi-story residential and industrial
developments are the next important segments having 6% and
4% of the market share, respectively.

Chart 63. Entrance Gates Market Segmentation, 2015

1% Commercial 4% Industrial
1% Public buildings 2%
Others
6%
Multi-storey residential

Entrance Gate
Market
116,836 sqm

86%
Villas

Villas Multi-storey residential Public buildings


Commercial Industrial Others
Source: Team Analysis, MDPS Annual Bulletin of Building Permits
and Competed Building Statistics, Primary Interviews

5.1.1.1.3. Demand Drivers


Demand for entrance gates is driven by requirements arising
from real estate development projects that include various
asset classes, such as villas, multi-story residential buildings,
commercial developments, public buildings and industrial
facilities. Civil contractors undertaking construction contracts
comprise the customer segment. Architects and interior
designers who design entrance gates are the key influencers.
5.1.1.1.4. Demand Forecast
The decline in oil prices in 2014 and 2015 is likely to affect
the development of new projects that are either planned or
underway. The market size is estimated to have reduced by
38.2% from 116,836sqm in 2015 to 72,205sqm in 2016.
Going forward, the entrance gate market is expected to grow
from 72,205sqm in 2016 to an estimated 81,564sqm in 202675,
registering a CAGR of 1.2%. In value terms, the market would
grow at a CAGR of 3.7% from QAR93mn in 2015 to reach
QAR134mn in 2026.

74,75
Team Analysis

102 Manufacture of Structural Metal Products


Chart 64. Qatar’s Entrance Gates Demand Forecast, 2015 to 2026

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

5.1.1.2. Trade Analysis


5.1.1.2.1. Historical Trade Analysis
Imports: The analysis of historical import data76 from 2001 indicates that imports have grown as per the real estate development
trends in Qatar. Imports increased from 3,361sqm (QAR2.1mn) in 2001 to 22,491sqm (QAR30.2mn) in 2008. Imports more than
doubled to 47,442sqm (QAR45mn) in 2009, when due to slowdown, inexpensive imports were preferred over domestic production.
Thenceforth, imports fell during 2010 and 2014 and again gained preference (45,889sqm, QAR48.3mn) in 2015.
Chart 65. Qatar’s Entrance Gates Imports, 2001 to 2015

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

Import Volume Imports Value

Source: ITC Trademap, Team Analysis

76
Team Analysis

Manufacture of Structural Metal Products 103


Exports: The analysis of historical export data77 indicates that exports have been very irregular and very small as compared to the
domestic production. During 2001 and 2015, annual exports averaged at 207sqm of entrance gates.

Chart 66. Qatar’s Entrance Gates Exports, 2001 to 2015


1.20 0.80
0.68
0.70
1.00
0.60
0.80 0.48
Thousand sqm

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

Export Volume Exports Value


Source: ITC Trademap, Team Analysis

5.1.1.2.2. Share of Imports in Domestic Consumption


The share of imports in Qatar’s entrance gate market grew from 17% in 2001 to 28% in 200878. After the global economic crisis of
2008 to 2009, the share of imports further grew to reach 52% to 69% during 2009 and 2011, due to a preference for inexpensive
imports. As the economy recovered, the share of imports reduced in during 2012 and 2014 and reached 39% in 2015. On an
average, during 2001 and 2015, 36.8% of the market was serviced by imports.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

77, 78
Team Analysis

104 Manufacture of Structural Metal Products


5.1.1.2.3. Assessment of Export Opportunities 5.1.1.2.4. Trade Forecast
Primary interviews with architectural steel fabrication units Imports: The import forecast of entrance gates indicates that
indicate that, due to the high cost of operations, Qatar’s about 36.8% of the market requirements (in quantity terms) will
production is not cost competitive and hence architectural be met by imports80. Primary interviews indicate that imports
steel fabrication units do not consider the export of entrance are about 20% to 30% cheaper than domestic production.
gates an attractive opportunity. Due to high salaries, rents and Imports are likely to range from 26,605sqm in 2016 to 30,054sqm
cost of raw material, production cost in Qatar is higher than in in 2026.
other countries in the GCC region. The analysis of export data
indicates that during 2001 to 201579, the exports of entrance
gates were only 0.58% of domestic production.

Chart 68. Qatar’s Entrance Gates Import Forecast, 2015 to 2026


150 100%
140
90%
130
117
120 80%
110
70%
100
Thousand sqm

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

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.

Chart 69. Qatar’s Entrance Gates Export Forecast, 2015 to 2026


100 5.0%
90 4.5%
80 4.0%
0.08
70 3.5%
Thousand sqm

60 3.0%
% share

0.29 0.29 0.29 0.30 0.30


50 0.26 0.26 0.27 0.28 0.28 2.5%
0.26
40 2.0%
71
30 1.5%
47 48 49 50 50 51 51 52
46 45 46
20 1.0%
10 0.11% 0.5%
0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58%
0 0.0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap
79,81
ITC Trademap Database
80,82
Team Analysis
Manufacture of Structural Metal Products 105
5.1.1.3. Pricing Analysis
The selling prices83 of entrance gates are quoted on the basis of per sqm and vary as per the size, design, color and other
specifications. Currently, the 2016 domestic prices84 for entrance gates are in the range of QAR700 to QAR2,000 per sqm (average
of QAR1,400 per sqm). On an average, imports are 23% cheaper than domestic production. Considering the inflation rates69 in
Qatar, average prices are expected to reach QAR1,789 per sqm for domestic production and QAR1,377 per sqm for imports
in 2026.

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

1,200 1,345 1,377


1,283 1,314
1,224 1,253
1,000 1,168 1,196
1,106 1,138
1,053 1,078
800
600
400
200
0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

Domestic price Import price


Source: Team Analysis, Primary Interviews

5.1.2. Decorative Doors


Decorative doors are the main doors installed at the entrance
of villas and also residential buildings. In addition to being
used as the main doors, decorative steel doors can be used for
majlis and residential buildings. Decorative steel doors secure
the villa residents, have an esthetic appeal and control ingress
into the villa premises. These doors are fabricated from steel
sheets, plates, rods and sections. A variety of decorative steel
doors are available in different sizes, shapes, designs, apart from
accessories made of other metals, such as brass and aluminum.
Most steel decorative doors have some intricate design
patterns attached to the steel rods, giving the door an esthetic
appeal. These design patterns are usually painted in golden
color and made from cast aluminum.

5.1.2.1. Demand-Side Analysis


5.1.2.1.1. Historical and Current Market Size
The market size71 for decorative doors has followed the
development trends for villas that mainly drive its demand. The
market size grew from 9,385sqm in 2001 (QAR9mn) to a peak
of 38,192sqm (QAR61mn) in 2008, implying a CAGR of 22.2%
The slowdown of 2008–2009 led to subdued real estate
development activity in the subsequent years that reduced
the market size to 25,051sqm in 2011. Thereafter, the market
recovered and is estimated to have reached 55,662sqm
(QAR94mn) in 2015.
83,84
ITC Trademap Database

106 Manufacture of Structural Metal Products


Chart 71. Qatar’s Decorative Doors Demand, 2001 to 2015
100 120
90 105
94
80
90
70
Thousand 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

5.1.2.1.2. Market Size Segmentation by Products 5.1.2.1.3. Demand Drivers


Decorative door for villas is the largest segment accounting Demand for decorative steel doors is driven by requirements
for 99.5% of the demand85. Villas constitute 45%of upcoming from villas and a few multi-story residential buildings. Other asset
real estate developments in Qatar and have high consumption classes such as commercial developments, public buildings
rates (sqm of decorative door consumed per 1,000sqm of and industrial facilities are unlikely to require decorative doors.
built-up area) of decorative doors. Some high-end multi-story Civil contractors undertaking construction contracts comprise
residential developments may also require decorative doors. the customer segment. Architects and interior designers who
design decorative doors are the key influencers.
Chart 72. Decorative Doors Market Segmentation, 2015
5.1.2.1.4. Demand Forecast
0.44% The decline in oil prices in 2014 and 2015 is likely to affect the
Multi-storey residential development of new villa projects that are either planned or
underway. The market size is estimated to have reduced by
37.4% from 55,662sqm in 2015 to 34,845sqm in 2016.
Going forward, the decorative doors market is expected to
grow from 34,845sqm in 2016 to an estimated 39,362sqm in
Decorative 202686, registering a CAGR of 1.2%. In value terms, the market
Door Market would grow at a CAGR of 3.7% from QAR60mn in 2016 to reach
55,662 sqm QAR86mn in 2026.

99.56%
Villas
Source: Team Analysis, MDPS Annual Bulletin of Building Permits
and Competed Building Statistics, Primary Interviews

85, 86
Team Analysis

Manufacture of Structural Metal Products 107


Chart 73. Qatar’s Decorative Doors Demand Forecast, 2015 to 2026
60 94 100
86
84 90
81
50 78
75 80
72
69
66
63 70
40 60 60
Thousand sqm

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

5.1.2.2. Trade Analysis


5.1.2.2.1. Historical Trade Analysis
Imports: The analysis of historical import data87 from 2001 indicates that imports have grown as per the real estate development
trends in Qatar. Imports increased from 1,509sqm in 2001 to 10,098sqm (QAR19.7mn) in 2008. Imports more than doubled
to 21,300sqm (QAR29.5mn) in 2009, when due to slowdown, inexpensive imports were preferred over domestic production.
Thereafter, imports fell during 2010 to 2014 and again gained preference (20,603sqm, QAR31.5mn) in 2015.

Chart 74. Qatar’s Decorative Doors Imports, 2001 to 2015


25 35
31.5
29.5 29.1
28.4
30
20 25.9
24.5
23.4
25
Thousand sqm

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

Import Volume Import Value


Source: ITC Trademap, Team Analysis

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

108 Manufacture of Structural Metal Products


Chart 75. Qatar’s Decorative Doors Exports, 2001 to 2015
0.50 0.50
0.44
0.45 0.45
0.40 0.40
0.35 0.32 0.35
Thousand sqm

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

Export Volume Export Value


Source: ITC Trademap, Team Analysis

5.1.2.2.2. Share of Imports in Domestic Consumption


The share of imports in Qatar’s decorative doors market grew from 16.1% in 2001 to 26.4% in 200889. After the global economic
crisis of 2008–2009, the share of imports further grew to reach 57% to 65.4% during 2009 and 2011, due to a preference for
inexpensive imports. As the economy recovered, the share of imports reduced in 2012 to 2014 and reached 37% in 2015. On an
average, during 2001 and 2015, 34.3% of the market was serviced by imports.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

5.1.2.2.3. Assessment of Export Opportunities


Primary interviews with architectural steel fabrication units indicate that, due to the high cost of operations, Qatar’s production is
not cost competitive and hence architectural steel fabrication units do not consider the export of decorative doors an attractive
opportunity. Due to high salaries, rents and cost of raw material, production cost in Qatar is higher than in other countries in the
GCC region. The analysis of export data90 indicates that during 2001 and 2015, the exports of decorative doors were only 0.52%
of domestic production.

89,90
ITC Trademap

Manufacture of Structural Metal Products 109


5.1.2.2.4 Trade Forecast
Imports: The import forecast of decorative doors indicates that about 34.3% of the market requirements (in quantity terms) will be
met by imports91. Primary interviews indicate that imports are about 10% to 20% cheaper than domestic production. Imports are
likely to range from 11,947sqm in 2016 to 13,495sqm in 2026.

Chart 77. Qatar’s Decorative Doors Import Forecast, 2015 to 2026


60 100
56
90
50
80
21
38 39 39 39 70
40 36 37 38
36
Thousand sqm

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

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.

Chart 78. Qatar’s Decorative Doors Export Forecast, 2015 to 2026


50 5.0%

45 4.5%

40 0.04 4.0%

35 3.5%
Thousand sqm

0.13 0.13 0.13 0.13 3.0%


30 0.12 0.13 0.13
% share

0.12 0.12 0.12


0.12
25 2.5%

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

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap

91
Team Analysis
92
Primary Interviews

110 Manufacture of Structural Metal Products


5.1.2.3. Pricing Analysis
The selling prices of decorative doors are quoted on the basis of per sqm and vary as per the size, design, color, intricate
decorative features and other specifications. Currently, the 2016 domestic prices93 for decorative doors are in the range of QAR1,000
to QAR2,500 per sqm (average of QAR1,800 per sqm). On an average, imports are 13% cheaper than domestic production.
Considering the inflation rates in Qatar, average prices are expected to reach QAR2,301 per sqm for domestic production and
QAR1,999 per sqm for imports in 2026.

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

Domestic price Import price

Source: Team Analysis, Primary Interviews

5.1.3. Steel Flush Doors


Steel flush doors are used in key areas, such as fire escape
staircase and lift lobby, and service areas, such as electricity
rooms and other utility chambers. These are made from steel
sheets, plates and angles, and are usually painted in desired
color. Some doors can be fitted with fixed glass panels.
Based on the requirement, steel flush doors can be fire-rated
for fire escape staircases and non-fire-rated for other purposes.

5.1.3.1. Demand-Side analysis


5.1.3.1.1. Historical and Current Market Size
The market size for steel flush doors has followed the
development trends in commercial projects, multi-story
residential developments followed by public buildings that are
its key drivers. The market size grew from 8,053sqm in 2001
to a peak of 36,581sqm (QAR38.9mn) in 2008, at a CAGR of
24.1%. The slowdown of 2008–2009 led to subdued real estate
development activity in the subsequent years that reduced
the market size to 25,421sqm in 2010. Thereafter, the market
recovered and is estimated to have reached 52,986sqm in 2015
(QAR47.2mn). Steel flush doors: fire-rated

93
Primary Interviews

Manufacture of Structural Metal Products 111


Chart 80. Qatar’s Steel Flush Doors Demand, 2001 to 2015
70 47.2 50
65
45
60
38.9 38.6
55 40
36.2
50 35
31.7 32.3
45 29.5
Thousand sqm

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

5.1.3.1.4. Demand Forecast Multi-storey residential Public buildings Commercial


The decline in oil prices in 2014 and 2015 is likely to affect the Industrial Others
development of new real estate projects that are either planned Source: Team Analysis, MDPS Annual Bulletin of Building Permits
or underway. The market size is estimated to have reduced by and Competed Building Statistics, Primary Interviews
40.0% from 52,986sqm in 2015 to 31,774sqm in 2016.
Going forward, the steel flush doors market is expected to
grow from 31,774sqm in 2016 to an estimated 35,893sqm in
2026, implying a CAGR of 1.2%. In value terms, the market
would grow at a CAGR of 3.7% from QAR29mn in 2016 to reach
QAR41.9mn in 2026.

94
Team Analysis

112 Manufacture of Structural Metal Products


Chart 82: Qatar’s Steel Flush Doors Demand Forecast, 2015 to 2026
70 50
47.2
65
41.9 45
60 40.6
39.2
37.8 40
55 36.5
35.1
50 33.6
32.1 35
45 30.4
29.0 29.1
Thousand sqm

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

5.1.3.3. Trade Analysis


5.1.3.3.1. Historical Trade Analysis
Imports: The analysis of historical import data95 from 2001 indicates that imports have grown as per the real estate development
trends in Qatar. Imports increased from 2,896sqm in 2001 to 19,380sqm (QAR19.7mn) in 2008. Imports more than doubled
to 40,880sqm (QAR29.5mn) in 2009, when due to slowdown, inexpensive imports were preferred over domestic production.
Thenceforth, imports fell during 2010 and 2014 and again gained preference (39,541sqm, QAR31.5mn) in 2015.

Chart 83. Qatar’s Steel Flush Doors Imports, 2001 to 2015


25 35
29.5 31.5
28.4 29.1
30
20 25.9
24.5
23.4
25
19.7
Thousand sqm

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

Import Volume Import Value


Source: ITC Trademap, Team Analysis

95
ITC Trademap

Manufacture of Structural Metal Products 113


Exports: The analysis of historical export data96 indicates that exports have been very irregular and very small as compared to the
domestic production. During 2001 and 2015, annual exports averaged at 179sqm of steel flush doors.

Chart 84. Qatar’s Steel Flush Doors Exports, 2001 to 2015


0.90 0.50
0.44
0.80 0.45

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

Export Volume Exports Value


Source: ITC Trademap, Team Analysis

5.1.3.3.2. Share of Imports in Domestic Consumption


The share of imports in Qatar’s steel flush doors market grew from 36.0% in 2001 to 53.0% in 200897. After the global economic
crisis of 2008–2009, the share of imports further grew to reach 90% to 100% during 2009 and 2011, due to a preference for
inexpensive imports. As the economy recovered, the share of imports reduced between 2012 and 2014 and reached 74.6% in
2015. On an average, during 2001 and 2015, 74.4% of the market was serviced by imports.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

96, 97
ITC Trademap

114 Manufacture of Structural Metal Products


5.1.3.3.3. Assessment of Export Opportunities
Primary interviews with architectural steel fabrication units indicate that, due to the high cost of operations, Qatar’s production is
not cost competitive and hence architectural steel fabrication units do not consider the export of steel flush doors an attractive
opportunity. Due to high salaries, rents and cost of raw material, production cost in Qatar is higher than in other countries in the
GCC region. The analysis of export data indicates that during 2001 and 201598, exports of steel flush doors were only 2.6% of
domestic production.

5.1.3.3.4. Trade Forecast


Imports: The import forecast of steel flush doors indicates that about 74.4% of the market requirements (in quantity terms) will be
met by imports. Primary interviews indicate that imports are about 25% to 40% cheaper than domestic production. Imports are
likely to range from 23,638sqm in 2016 to 26,702sqm in 2026.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

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

0.21 0.21 0.22


9 0.20 0.21
% share

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

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap
98
ITC Trademap
99
Team Analysis
Manufacture of Structural Metal Products 115
5.1.3.4. Pricing Analysis
The selling prices of steel flush doors are quoted on the basis of per sqm and vary as per the size, design, color, number of hours
of fire resistance offered and other specifications. Currently, the 2016 domestic prices100 for steel flush doors are in the range
of QAR1,000 and QAR1,500 per sqm (average of QAR1,200 per sqm). On an average, imports are 32% cheaper than domestic
production. Considering the inflation rates in Qatar, average prices are expected to reach QAR1,534 per sqm for domestic
production and QAR1,042 per sqm for imports in 2026.

Chart 88. Qatar’s Steel Flush Doors Selling Prices Forecast, 2015 to 2026
1,800

1,600 1,498 1,534


1,429 1,463
1,363 1,396
1,400 1,300 1,331
1,232 1,267
1,171 1,200
1,200
QAR per sqm

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

Domestic price Import price


Source: Team Analysis, Primary Interviews

5.1.4. Rolling Shutters


Rolling shutters are used in commercial premises (shops) and
industrial buildings, such as factory sheds and warehouses. They
may also be used to control ingress into basements. Rolling
shutters roll up and down around a steel pipe fixed at the top
of the opening, and save space as compared to conventional
vertically hung swing doors. These are made from steel sheets,
profiles and pipes, and are usually painted in desired colors. In
addition to being operated with the help of mechanical levers,
these doors can be operated with electronic controls.

5.1.4.1 Demand-Side Analysis


5.1.4.1.1. Historical and Current Market Size
The market size for rolling shutters has followed the development
trends in commercial projects and indusial developments,
such as warehouses and factory sheds. The market size grew
from 14,818sqm in 2001 to a peak of 62,690sqm (QAR46mn) in
2008, at a CAGR of 22.9%. The slowdown of 2008–2009 led to
subdued real estate development activity in the subsequent
years that reduced the market size to 41,007sqm in 2010.
Thereafter, the market recovered and is estimated to have
reached 84,611sqm in 2015 (QAR52mn).

100
Primary Interviews

116 Manufacture of Structural Metal Products


Chart 89. Qatar’s Rolling Shutters Demand, 2001 to 2015
100 60
52 55
90
46 50
80
43 45
40
70
36 40
33
Thousand sqm

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.

5.1.4.1.3. Demand Drivers


Demand for rolling shutters is driven by requirements arising
from commercial (shops and retail units) and industrial
developments. Civil contractors undertaking construction
Rolling Shutter
contracts comprise the customer segment. Architects and
Market
interior designers are the key influencers.
84,661 sqm
5.1.4.1.4. Demand Forecast
The decline in oil prices in 2014 and 2015 is likely to affect the
development of new real estate projects that are either planned
or underway. The market size is estimated to have reduced by
40.0% from 84,611sqm in 2015 to 50,775sqm in 2016.
Going forward, the rolling shutter market is expected to grow
from 50,775sqm in 2016 to an estimated 57,357sqm in 2026102, Source: Team Analysis, MDPS Annual Bulletin of Building Permits
registering a CAGR of 1.2%. In value terms, the market would and Competed Building Statistics, Primary Interviews
grow at a CAGR of 3.7% from QAR32mn in 2016 to reach
QAR46mn in 2026.

101,102
Team Analysis

Manufacture of Structural Metal Products 117


Chart 91. Qatar’s Rolling Shutters Demand Forecast, 2015 to 2026
90 100%

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

5.1.4.2. Trade Analysis


5.1.4.2.1. Historical Trade Analysis
Imports: The analysis of historical import data from 2001 indicates that imports have grown as per the real estate development
trends in Qatar. Imports increased from 4,573sqm in 2001 to 30,600sqm (QAR22.0mn) in 2008. Imports more than doubled
to 64,547sqm (QAR32.9mn) in 2009, when due to slowdown, inexpensive imports were preferred over domestic production.
Thenceforth, imports fell during 2010 and 2014 and again gained preference (62,433sqm, QAR35.1mn) in 2015.

Chart 92. Qatar’s Rolling Shutters Imports, 2001 to 2015


100 50

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

Import Volume Imports Value


Source: ITC Trademap, Team Analysis

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

118 Manufacture of Structural Metal Products


Chart 93. Qatar’s Rolling Shutters Exports, 2001 to 2015
1.40 0.60

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

Export Volume Export Value


Source: ITC Trademap, Team Analysis

5.1.4.2.2. Share of Imports in Domestic Consumption


The share of imports in Qatar’s rolling shutters market was in the range of 21% to 35% during 2001 and 2004. The market was
entirely served by imports during 2006 and 2010 with the exception of 2008. Domestic players had small market shares during 2011
and 2014. On an average, during 2001 and 2015, 74.5% of the market was serviced by imports.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

5.1.4.2.3. Assessment of Export Opportunities


Primary interviews with architectural steel fabrication units indicate that, due to the high cost of operations, Qatar’s production
is not cost competitive and hence architectural steel fabrication units do not consider the export of rolling shutters an attractive
opportunity. Due to high salaries, rents and cost of raw material, production cost in Qatar is higher than in other countries in
the GCC region. The analysis of export data indicates that during 2001 and 2015, exports of rolling shutters were only 2.6% of
domestic production.

Manufacture of Structural Metal Products 119


5.1.4.2.4. Trade Forecast
Imports: The import forecast of rolling shutters indicates that about 74.5% of the market requirements (in quantity terms) will be
met by imports. Primary interviews indicate that imports are about 25% to 40% cheaper than domestic production. Imports are
likely to range from 37,827sqm in 2016 to 42,730sqm in 2026.

Chart 95. Qatar’s Rolling Shutters Import Forecast, 2015 to 2026


100 100%
90 90%
80 73.8% 74.5% 74.5% 74.5% 74.5% 74.5% 74.5% 74.5% 74.5% 74.5% 74.5% 74.5% 80%
70 70%
Thousand sqm

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

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.

Chart 96. Qatar’s Rolling Shutters Export Forecast, 2015 to 2026


30 30%
28
26
25%
24 0.1
22
20 20%
Thousand sqm

18
% share

16 0.4 0.4 0.4 0.4 0.4 0.4 0.4


0.3 0.3 0.3 0.3 15%
14
12
13 14 14 14 14 14 15 15
10 22 13 13 13 10%
8
6
2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 5%
4
2 0.5%
0 0%
2015 2016E 2017f 2018f 2019f 2020f 2021f 2022f 2023f 2024f 2025f 2026f

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap

120 Manufacture of Structural Metal Products


5.1.4.3. Pricing Analysis
The selling prices of rolling shutters are quoted on the basis of per sqm and vary as per the size, color and other specifications.
Currently, the 2016 domestic prices for rolling shutters are in the range of QAR600 and QAR1,100 per sqm (average of QAR800 per
sqm). On an average, imports are 28% cheaper than domestic production. Considering the inflation rates in Qatar, average prices
are expected to reach QAR1,022 per sqm for domestic production and QAR736 per sqm for imports in 2026.

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

Domestic price Import price


Source: Team Analysis, Primary Interviews

5.1.4.3.1. Trade by Source and Destination (All types of doors)


Imports: The analysis of steel doors (all types of steel doors) total imports quantity, during the period 2010 to 2015, amounting to
38,745MT indicates that the UAE (37% share), China (22% share) and the KSA (9% share) are the major sources of imports.

Chart 98. Key Sources of Imports (All Types of Steel Doors), 2010 to 2015
100% 100%

90% Rest of the World 90%

80% 80%
USA Egypt
70% 70%

60% 60%
Saudi Arabia
50% 50%

40% China 40%

30% 30%

20% 20%
UAE
10% 10%

0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis

Manufacture of Structural Metal Products 121


The UAE has been the leading source of imports of steel doors into Qatar, accounting for 45.5% of all imports in 2015. China’s
share of imports reduced from 2010 to 2014 and increased in 2015. Saudi Arabia, Egypt and the USA had consistently had small
shares in the import market during 2010 to 2015. From 2012 to 2015, Egypt’s share increased, while that of Saudi Arabia decreased.
Exports: The analysis of steel doors (all types of steel doors) total exports quantity, during the period 2010 to 2015, amounting
to 474MT indicates that the KSA (49% share), Kuwait (23% share) and the UAE (21% share) are the major destination for exports.

Chart 99. Key Destinations of Exports (All Types of Steel Doors), 2010 to 2015
100% 100%
China
90% Rest of the World Turkey 90%

80% UAE 80%

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.

5.1.5. Staircase Railings


Staircase railings are installed along staircases and offer
support to people as they climb up and down the staircase.
These are made from steel rods, sections, pipes and can be
combined with other materials such as glass and wood. Steel
staircase can be fabricated in a variety of options in terms of
sizes, shapes, designs, glass panels and accessories of other
metals, such as brass and aluminum. Some staircase railings
have intricate design patterns attached to the steel rods, giving
it an esthetic appeal. These design patterns are usually painted
in golden color and made from cast aluminum.

5.1.5.1. Demand-Side Analysis


5.1.5.1.1. Historical and Current Market Size
The market size for staircase railing has followed the real estate
development trends as this product is used in all types of real
estate asset classes. The market size grew from 49,286 linear
meter in 2001 to a peak of 204,826 linear meter (QAR176mn)
in 2008, at a CAGR of 20.0%. The slowdown of 2008–2009 led
to subdued real estate development activity in the subsequent
years that reduced the market size to 143,125 linear meter in
2011. Thereafter, the market recovered and is estimated to
have reached 302,996 linear meter in 2015 (QAR253mn).

122 Manufacture of Structural Metal Products


Chart 100. Qatar’s Staircase Railings Demand, 2001 to 2015
320 320
300 300
280 253 280
260 260
240 240
Thousand linear meter

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

5.1.5.1.2. Market Size Segmentation by Products 5.1.5.1.3. Demand Drivers


Staircase railings for villas is the largest segment accounting Demand for staircase railings is driven by requirements arising
for 81.9% of the demand. Villas constitute 45% of upcoming from real estate development projects that include various
real estate developments in Qatar and have high consumption types of developments, such as villas, multi-story residential
rates (linear meter of staircase railing consumed per 1,000sqm buildings, commercial developments, public buildings and
of built-up area) of staircase railings. Multi-story residential and industrial facilities. Civil contractors undertaking construction
commercial developments are the next important segments contracts comprise the customer segment. Architects and
having 13.5% and 2.6% of the market share, respectively. interior designers who design staircase railings are the key
influencers.
Chart 101. Staircase Railings Market Segmentation, 2015
5.1.5.1.4. Demand Forecast
2.6% Commercial 1% Industrial The decline in oil prices in 2014 and 2015 is likely to affect

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.

Villas Multi-storey residential Public buildings


Commercial Industrial Others
Source: Team Analysis, MDPS Annual Bulletin of Building Permits
and Competed Building Statistics, Primary Interviews

Manufacture of Structural Metal Products 123


Chart 102. Qatar’s Staircase Railings Demand Forecast, 2016 to 2026
330 300
253
310 280
290 260
231
270 223 240
216
250 208 220
201
193
Thousand linear meter

230 185 200


177
210 167 180
160 160

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

5.1.5.2. Trade Analysis


5.1.5.2.1. Historical Trade Analysis
Imports: The analysis of historical import data from 2001 indicates that imports have grown as per the real estate development
trends in Qatar, over the 2001 and 2007 period. Imports increased from 2,389 linear meter in 2001 to 22,664 linear meter (QAR35mn)
in 2007. Thereon, imports have been irregular, rising and falling in the alternate years to reach 49,623 linear meter (QAR30.2mn)
in 2015.

Chart 103. Qatar’s Staircase Railings Imports, 2001 to 2015


80 40
35.0
70 35
30.2
60 30
24.4 26.7
Thousand linear meter

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

Import Volume Imports Value


Source: ITC Trademap, Team Analysis

124 Manufacture of Structural Metal Products


Exports: Analysis of historical export data indicates that exports have been highly irregular and marginal as compared to the
domestic production. In 2001 and 2015, the annual exports averaged at 550 linear meter of staircase railing.

Chart 104. Qatar’s Staircase Railings Exports, 2001 to 2015


4.5 1.2
1.10
4.0
1.0
3.5
Thousand linear meter

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

Export Volumet Exports Value


Source: ITC Trademap, Team Analysis

5.1.5.2.2. Trade by Source and Destination


Imports: The analysis of the steel staircase railing imports amounting to 14,641MT from 2010 to 2015 indicates that the UAE (62%
share), Germany (15% share) and China (5% share) are the major sources of imports.

Chart 105. Key Sources of Staircase Railings Imports, 2010 to 2015


100% 100%
Rest of the World
90% Hungary 90%

80% 80%

70% 70%

60% Turkey 60%

50% China 50%

40% 40%
Germany
30% 30%

20% 20%

10% UAE 10%

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.

Manufacture of Structural Metal Products 125


Exports: The analysis of steel staircase exports from Qatar amounting to 461MT from 2010 to 2015 indicates that Algeria
(43% share), the UAE (23% share) and the KSA (11% share) are the major destinations for exports.

Chart 106. Key Destinations of Staircase Railings Exports, 2010 to 2015


100% 100%
Rest of the World
90% Kuwait 90%

80% 80%

70% 70%

60% 60%

50% Saudi Arabia 50%

40% Germany 40%

30% 30%

20% UAE 20%


Algeria
10% 10%

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.

5.1.5.2.3. Share of Imports in Domestic Consumption


Historically, the share of imports in Qatar’s steel staircase railing market has been lower than that of the domestic players across
2001 and 2015. On average, in 2001 and 2015, 14.5% of the market was serviced by imports. Due to preference for inexpensive
imports, the share of imports increased to 46% and 26% in 2010 and 2015, respectively.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

126 Manufacture of Structural Metal Products


5.1.5.2.4. Assessment of Export Opportunities
Primary interviews with architectural steel fabrication units indicate that due to high cost of operations, Qatar’s production is not
cost competitive and hence, architectural steel fabrication units do not consider export of steel staircase railing an attractive
opportunity. Due to high cost of salaries, rent and raw material, production cost in Qatar is high as compared to other countries
in the GCC region. Analysis of export data indicates that during 2001 and 2015, exports of steel staircase railing constituted only
0.44% of the domestic production.

5.1.5.2.5. Trade Forecast


Imports: The import forecast of steel staircase railings indicates that about 14.5% of the market requirements (in quantity terms)
will be met by imports. Primary interviews indicate that imports are about 25% to 35% cheaper than domestic production. Imports
are likely to range from 26,851 linear meter in 2016 to 30,332 linear meter in 2026. Imports would have a minor share because, as
compared to other architectural steel fabrication products, staircase railings require substantial amount of site-specific working
(e.g., angle of inclination, curve, height, etc.), due to which customers prefer to rely on domestic players.

Chart 108. Qatar’s Staircase Railings Import Forecast, 2015 to 2026


325 100%
300 90%
275 50
80%
250
Thousand linear meter

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

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.

Manufacture of Structural Metal Products 127


Chart 109. Qatar’s Staircase Railings Export Forecast, 2015 to 2026
325 30%
300
275 0.68 25%
250
Thousand linear meter

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

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap

5.1.5.3. Pricing Analysis


Selling prices for steel staircase railings are quoted on per linear meter basis and vary as per the design, size, color, painted steel
or stainless steel, use of other materials such as glass panels, and other specifications. Currently, the 2016 domestic prices for
staircase railings are in the range of QAR700 to QAR2,000 per linear meter (average of QAR900 per linear meter). On average,
imports are 30.7% cheaper as compared to domestic production. Considering the inflation rates in Qatar, average prices are
expected to reach QAR1,150 per linear meter in 2026, for domestic production and QAR797 per linear meter for imports.

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

Domestic price Import price


Source: Team Analysis, Primary Interviews

162, 163
Primary Interviews
164
WEO

128 Manufacture of Structural Metal Products


5.1.6. Grills and Fencing
Grills and fences are used along boundary walls of real
estate developments and along road medians and edges of
footpaths. These are fixed to the wall or to the ground and
prevent unauthorized access into the spaces that they enclose.
Grills and fences are made from steel rods, sections, steel pipes
and can be fabricated in a variety of shapes, sizes, designs,
colors and patterns.

5.1.6.1. Demand-Side Analysis


5.1.6.1.1. Historical and Current Market Size
The market size for grills and fencing has followed the real
estate development trends as this product is used in all types
of projects. Infrastructure development is also a key driver for
grills and fencing.
The market size grew from 178,522sqm in 2001 to a peak
of 739,395sqm (QAR225mn) in 2008, at a CAGR of 20.2%.
The slowdown of 2008–2009 led to subdued real estate
development activity in the subsequent years that reduced
the market size to 516,389sqm in 2011. Thereon, the market
recovered and is estimated to have reached 973,942sqm in
2015 (QAR370mn).

Chart 111. Qatar’s Grills and Fencing Demand, 2001 to 2015


1,200 370 400
1,100
350
1,000
900 300
800 225 250
227 250
Thousand sqm

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

Market Size (Volume, sqm) Market Size (Value, QAR mn)


Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics

Manufacture of Structural Metal Products 129


5.1.6.1.2. Market Size Segmentation by Products 5.1.6.1.3. Demand Drivers
Infrastructure sector projects such as new road development Demand for grills and fences is driven by real estate
and widening of existing roads form the largest segment (67%) developments and road development projects. The customer
followed by villas, which have a market share of 26.8%. Other segment comprises civil contractors undertaking construction
asset classes such as multi-story residential and commercial contracts for real estate projects and infrastructure
buildings have small shares in the market. developments. Key influencers include engineers who design
road projects and architects who design buildings.
Chart 112. Grills and Fencing Market Segmentation, 2015
5.1.6.1.4. Demand Forecast
66.7% The decline in oil prices in 2014 and 2015 is likely to affect the
Infrastructure development of new real estate and infrastructure projects that
are either planned or underway. The market size is estimated to
Grills and have reduced by 30.5% from 973,942sqm in 2015 to 677,039sqm
fencing market 26.8% in 2016.
973,942 sqm Villas
Going ahead, the grills and fencing market is expected to grow
from 677,039sqm in 2016 to an estimated 764,800 linear meter
in 2026, registering a CAGR of 1.2%. In value terms, the market
would grow at a CAGR of 3.7% from QAR256mn to reach
1.7% Others QAR370mn in 2026.
2.6%
1.3% Industrial Multi-storey residential

0.9% Commercial 1.0% Public buildings


Villas Multi-storey residential Public buildings
Commercial Industrial Others Infrastructure
Source: Team Analysis, MDPS Annual Bulletin of Building Permits
and Competed Building Statistics, Primary Interviews

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

256 283 300


700 257 269
QAR mn

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

Market Size (Volume, sqm) Market Size (Value, QAR mn)


Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics

130 Manufacture of Structural Metal Products


5.1.6.2. Trade Analysis
5.1.6.2.1. Historical Trade Analysis
Imports: The analysis of historical import data from 2001 indicates that imports have grown as per the real estate development
trends in Qatar. Imports increased from 171,382sqm in 2001 to 335,527sqm (QAR75mn) in 2008. Thereafter, imports paced up to
492,455sqm (QAR119mn) in 2009, when due to slowdown, inexpensive imports were preferred over domestic production. Further,
imports fell steeply in 2010 and 2011, increased to 579,636sqm in 2012 and thereon gradually reduced to 113,636sqm (QAR34mn)
in 2015.

Chart 114. Qatar’s Grills and Fencing Imports, 2001 to 2015


700 140
119
600 120

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

100 217 203 227 204 20


194 134 130
171 182 114
116
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Import Volume Imports Value


Source: ITC Trademap, Team Analysis

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.

Chart 115. Qatar’s Grills and Fencing Exports, 2001 to 2015


25 6.0
5.3
5.1
5.0
20

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

Export Volume Exports Value


Source: ITC Trademap, Team Analysis

Manufacture of Structural Metal Products 131


5.1.6.2.2. Trade by Source and Destination
Imports: The analysis of grills and fencing total imports, during the period 2010 to 2015, amounting to 76,408MT from 2010 to
2015, indicates that the UAE (66%), China (10%) and the KSA (9%) are the major sources of imports.

Chart 116. Key Sources of Grills and Fencing Imports, 2010 to 2015
100% 100%
Rest of the World
90% 90%
Bahrain UK
80% 80%

70% Saudi Arabia 70%

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%

70% UAE 70%

60% 60%

50% Saudi Arabia 50%

40% 40%

30% 30%

20% Kuwait 20%

10% 10%

0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis

132 Manufacture of Structural Metal Products


During 2010 to 2015, the exports of grills and fencing were to nearby countries, such as Kuwait, Saudi Arabia, the UAE, Oman and
Yemen. In 2014 and 2015, most of the exports were to Saudi Arabia, while in 2010 and 2011, Kuwait was the leading destination
for exports.

5.1.6.2.3. Share of Imports in Domestic Consumption


Share of imports in Qatar’s grills and fencing market has reduced from an all-time high of 96% in 2001 to 12% in 2015, with the
exception of intermediate years such as 2007, 2009 and 2012 when the imports serviced major portions of the market.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

5.1.6.2.4. Assessment of Export Opportunities


Primary interviews with the architectural steel fabrication
units indicate that, due to a high cost of operations, Qatar’s
production is not cost competitive and hence, architectural
steel fabrication units do not consider the export of grills
and fencing as an attractive opportunity. Due to high cost of
salaries, rent and raw material, production cost in Qatar is high
as compared to other countries in the GCC region. Analysis
of export data indicates that across the 2001 and 2015 period,
exports of grills and fencing constituted only about 2.1% of the
domestic production.

5.1.6.2.5. Trade Forecast


Imports: As the percentage of share of imports has fallen over
the years, considering the near term trends, the import forecast
of grills and fencing indicates that about 23.6% of the market
requirements (in quantity terms) will be met by imports. Primary
interviews with industry players indicates that imports are about
20% to 25% cheaper than the domestic production. Imports are
likely to range from 159,837sqm in 2016 to 180,556sqm in 2026.

Manufacture of Structural Metal Products 133


Chart 119. Qatar’s Grills and Fencing Import Forecast, 2015 to 2026
1,100 100%
1,000 90%
900 114
80%
800
70%
700
Thousand sqm

175 177 179 181 60%


170 173

% 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

Domestic Sales sqm % Share of Imports

Source: Team Analysis, ITC Trademap

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

Domestic Sales Exports Exports as % of domestic production

Source: Team Analysis, ITC Trademap

134 Manufacture of Structural Metal Products


5.1.6.3. Pricing Analysis
The selling prices of grills and fencing are quoted on a per sqm basis and vary as per the design, size, paint color and other
specifications. Currently, the 2016 domestic prices for grills and fencing are in the range of QAR300 to QAR700 per sqm (average
of QAR400 per sqm). On average, imports are 23.1% cheaper than the domestic production. Considering the inflation rates in
Qatar, the average price is expected to reach QAR511 per sqm in 2026 for domestic production and QAR393 per sqm for imports.

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

Domestic price Import price


Source: Team Analysis, Primary Interviews

5.1.7. Supply-Side Analysis


5.1.7.1.1. Market Structure
The structure of Qatar’s architectural steel fabrication market that comprises about 467 firms is fragmented. Based on the capacities
of the architectural steel fabrication firms, they can be classified as large, medium and small. Most architectural fabrication units
have capabilities to undertake both architectural steel fabrication and structural steel fabrication works.

Small-sized Firms Medium-sized Firms

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

Qatar’s ten leading firms form the group of large-sized firms.


They collectively have 10% share of the architectural steel
fabrication market in terms of quantity. On an average, 7.5%
of their capacity focuses on architectural steel fabrication
works and the rest (92.5%) is dedicated to structural steel
fabrication jobs.

Manufacture of Structural Metal Products 135


Chart 122. Qatar’s Architectural Steel Fabrication Market structure and Capacity Utilization
300,000 100%

20.0% 10.0% 250,000


90%

Small Large 74% 80%


64% 70%
200,000
50% 60%

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

Installed capacity Capacity Utilization (%)


Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015

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%.

Table 15. Architectural Steel Fabrication Market Structure Snapshot

Architectural Steel Fabrication Units Large Medium Small Total

Number of players Number 10 263 194 467

Average monthly capacity per player MT 1,671.4 150.0 12.5

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

Capacity per category – Architectural works MT 15,043 82,845 20,370 118,258

Market share % 10% 70% 20% 100%

Sales MT 7,548 52,838 15,097 75,483

Capacity utilisation % 50.2% 63.8% 74.1% 63.8%

Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015

136 Manufacture of Structural Metal Products


5.1.7.1.2. Profiling of Key Domestic Players

Table 16. Architectural Steel Fabrication: Key Domestic Players104

Company Year of establishment Products/Projects Installed capacity and units

• Architectural steel fabrication for metro


Gulf Steel 1989 rail, stadium and airport 12,000MT per annum
• Industrial, commercial, architectural works

Qatar Metal
2007 • Steel doors (fire and non-fire rated) 10,000sqm per month
Industries, UAE

• Hot-rolled steel structures


• Warehouses shades
Steel Master 2011 • Staircase 6,000MT per annum
• Gates, grills, handrail, cladding, hangers
• Erection of structural steel works

• 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

• Fire rated doors


• Handrails and fencing
Al Einkiaz & • Rolling shutters
Pilot Trading
1976 • Structural steel works NA
and Contracting
Company • Pre-fabricated building
• Aluminum and glass works
• Other aluminum works

104
Primary Interviews, company websites

Manufacture of Structural Metal Products 137


5.1.7.1.3. Business Model Analysis Raw Material: Qatar does not have domestic production of raw
The architectural steel fabrication market is dominated by materials such as steel plates, sheets and rods. The domestic
small- and medium-sized players. They are flexible, agile in raw material production capacity is underdeveloped, limited to
terms of their business approach and can focus on a varied mix small sections (less than 80mm). Hence, all architectural steel
of products, projects and customers. fabrication units in Qatar depend on imports to meet their raw
material needs.
Some players such as Hadadco and Drabzin focus exclusively
on architectural steel fabrication works. They focus on villa Our primary research indicates that raw materials are procured
projects, serve the local market with products such as entrance from countries such as China, India, the KSA, Turkey and the
gates, decorative gates and staircase handrails, and have UAE. Expensive raw materials significantly impact the cost of
showrooms at prominent areas in Doha. domestically produced finished goods.

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)

(60) (52) (51) (50) (49) (49) (48)


(56) (58) (56) (55) (53)
(80)
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

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

138 Manufacture of Structural Metal Products


5.1.9. Regulatory Analysis
Qatar Construction Specification 2014105: As steel fabrication
products are used in the construction sector, their production,
installation and usage are mainly regulated by the following
sections of Qatar Construction Specifications (QCS) 2014.
a) QCS 2014 Section 16: Structural Steelworks
This section has general instructions and regulations
related to materials, drawing, fabrication, welding,
bolting, accuracy of fabrication, erection, accuracy of
erected steel work and protected treatment.
b) QCS 2014 Section 17: Metal Work
This section has general instructions and regulations
related to material classification, metal doors and
windows, architectural metalwork, light metal support,
cladding support and workmanship.
In addition to the above, steel fabrication units are expected to
be familiar with other relevant sections of the QCS that regulate
construction activities having an interface with steel fabrication
products. These sections include section 13 (Masonry), section
14 (Roofing), section 4 (Foundation and retaining structures)
and section 5 (Concrete).
Ministry of Environment: Steel fabrication units need to be
approved by the Ministry of Environment.
Civil Defense Department (Ministry of Interior): All building
material products need an approval from the Civil Defense
Department (Ministry of Interior) as per Emiri Decree No.
9/2012. Steel fabrication units have to comply with applicable
fire safety norms.
ISO Certification: Obtaining ISO certifications (Quality 9001,
OHSAS 18001 and Environment 14,001) are vital for tendering
purposes.
Apart from the above, all prospective entrepreneurs need
to follow applicable laws on company registration, industrial
license and obtaining land and building permissions for setting
up a steel fabrication facility in Qatar.

105
QCS 2014

Manufacture of Structural Metal Products 139


5.1.10. SWOT Analysis and Michael Porter’s Five-Force Analysis
5.1.10.1. SWOT Analysis

Figure 17: Architectural Steel Fabrication SWOT Analysis

Architectural Steel Fabrication

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.

140 Manufacture of Structural Metal Products


5.1.10.2. Michael Porter’s Five-Force Analysis
Figure 18: Michael Porter’s Five Forces Model (Architectural Steel Fabrication)

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.

Manufacture of Structural Metal Products 141


5.2. Critical Success Factors
Critical Success Factors include the following:
Figure 19: Critical Success Factors - Architectural Steel Fabrication

Access to Raw Material


Raw material forms an important part of the costs incurred by an architectural
steel fabrication unit. Costs related to these are influenced by global trends
in the commodity prices. Entrepreneurs are unlikely to have any control
over raw material prices. Hence, competitiveness in procurement and
compliance with good practices in raw material and inventory management
such as economic order quantity and just in time, is essential.

Access to Skilled Laborers


Creativity and workmanship are
the key tools for differentiating
products in a competitive market. Access to Markets and Strategic Linkages
Hiring skilled staff such as designers, with Civil Contractors
welders and supervisory staff is
highly important. Entrepreneurs should develop a strong
relationship and strategic linkages with civil
contractors focusing on villa projects as this
would help in sustaining a steady order book.

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.

142 Manufacture of Structural Metal Products


High High High High High

Access to markets and Investment in


strategic linkages machinery

Access to Access to skilled Operational Technical Customer


raw material labourers efficiency know-how service

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

Manufacture of Structural Metal Products 143


6. Architectural
Aluminum
Fabrication

6.1. Qatar Market Overview


Architectural aluminum fabrication emerges as the second largest segment of
the structural metal products sector. It serves the varied needs of real estate asset
developments across asset classes such as villas, multi-story buildings, commercial
developments, public buildings and industrial facilities. The architectural aluminum
fabrication market constituted a sizable portion (21.4%) of the structural metal
products sector in 2015. In terms of domestic production value, it has 18.9% share
of the overall structural metal products sector. Key products in the architectural
aluminum fabrication segment are:
a) Aluminum and glass fabrication works
b) Aluminum sheet cladding
c) Aluminum doors, windows and partitions
d) Aluminum railings and fencing

Chart 124. Architectural Aluminum Fabrication Market Segmentation, 2015

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

Aluminum and Glass works Aluminum doors, windows & partitions


Aluminum railing and fencing Aluminum sheet cladding works
Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and
Competed Building Statistics

The 2015 architectural aluminum fabrication market is estimated at QAR1,656mn108.


Real estate asset classes, such as villas and multi-story residential developments,
commercial buildings and public buildings are likely to be the prime driver of
architectural products. Key products include aluminum and glass works (77.2% share),
aluminum doors, windows and partitions (4.6% share), aluminum railings and fencing
(1.7% share) and aluminum sheet cladding works (16.5% share). Going forward, the
market is expected to grow at a CAGR of 4.4% from QAR893mn in 2016 to reach an
estimated QAR1,375mn in 2026.
The structure of Qatar’s architectural aluminum fabrication market that comprises
about 70 firms is fragmented. Based on the capacities of the firms, they can be
classified as large, medium and small. Large-sized players have 39.3% share of the
sales by domestic players, followed by medium-sized players and small-sized players
having 37.9% and 22.8% share, respectively. Most large- and medium-sized
108
Team Analysis

144 Manufacture of Structural Metal Products


architectural aluminum fabrication firms have capabilities to 6.1.1. Aluminum and Glass Works
undertake the fabrication of all types of architectural aluminum Aluminum extrusion profiles are used along with glass to
products, such as aluminum and glass works, aluminum sheet fabricate various products, such as aluminum and glass doors,
cladding, doors, windows and partitions, staircase railings aluminum and glass windows, curtain walls and skylights. These
and fencing, while small firms are restricted to less-intensive products are used in all types of real estate asset classes, such
fabrication works and assembly of imported aluminum and as villas, multi-story residential buildings, commercial buildings
glass works. and public buildings. Raw materials include aluminum
Qatar does not produce glass, which is a major raw material extrusion profiles, glass, silicon-based fillers, frames and fixing
consumed in aluminum and glass works. Similarly, Qatar does accessories. As compared to steel, aluminum is lightweight and
not produce aluminum sheets that are used to manufacture does not rust. It can be delivered in various colors and finishes
aluminum composite panels used in aluminum sheet cladding and hence, is a commonly used metal for architectural products.
works. Due to high salaries, rents and cost of raw materials,
6.1.1.1. Demand-Side Analysis
production cost in Qatar is higher than in other countries in
the GCC region. Therefore, aluminum and glass works and 6.1.1.1.1. Historical and Current Market Size
aluminum sheet cladding works are localized products and are Aluminum and glass works market has followed the real estate
not exportable. development trends. The market size grew from 464,932sqm
Other products, such as aluminum doors, windows and (QAR173mn) in 2001 to 1,609,586sqm (QAR1,042mn) in
partitions and aluminum staircase railing, have export potential 2008, implying a CAGR of 19.4%. The sizable expansion in
as they can source aluminum extrusion profiles from Qatar- 2006 (market size of 2,476,090sqm) could be attributed to
based extruders. the demand arising from Asian Games 2006109 and related
developments. The slowdown of 2008–2009 led to subdued
The subsequent sections of the report provide a detailed real estate development activity in the subsequent years, which
market analysis of each of the product segments listed above. reduced the market size to 805,083sqm in 2010. Thereafter,
the market recovered and is estimated to have reached
1,892,844sqm in 2015 (QAR1,279mn).

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

2,100 892 1,000


823
Thousand sqm

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

Manufacture of Structural Metal Products 145


6.1.1.1.2. Market Size Segmentation by Products Curtain walls are used as façades, mostly in multi-story
Curtain walls emerge as the largest segment in the aluminum residential buildings, commercial developments and public
and glass works sector, accounting for 65% (1,230,349sqm) of buildings. Aluminum and glass doors are commonly used in
the market demand, followed by aluminum and glass doors non-residential developments whereas aluminum and glass
and windows at 30% (567,853sqm). Skylight and domes have a windows are used across all types of real estate asset classes.
small share of 5% (94,642sqm). Skylights and domes are used as a part of the roof covering
atriums and courtyards in commercial buildings.
Chart 126. Architectural Aluminum Fabrication Market
6.1.1.1.3. Demand Drivers
Segmentation, 2015
The demand for aluminum and glass works is driven by
requirements from real estate development projects that
5% include various types of asset classes, such as villas, multi-
Skylight and domes
story residential buildings, commercial developments, public
buildings and industrial facilities. Civil contractors undertaking
construction contracts constitute the customer segment.
Architects and interior designers who design aluminum and
glass works are the key influencers.

Alumimum 6.1.1.1.4. Demand Forecast


and Glass works: The decline in oil prices in 2014 and 2015 is likely to affect the
30% 1,892,844sqm development of new real estate projects that are either planned
Aluminum and
or underway. The market size is estimated to have reduced by
glass doors and
49.6% from 1,892,844sqm in 2015 to 953,775sqm in 2016.
windows
Going forward, the aluminum and glass works market is
expected to grow from 953,775sqm in 2016 to an estimated
1,151,172sqm in 2026, registering a CAGR of 1.9%. In value
65% terms, the market would grow at a CAGR of 4.5% from
Curtain wall QAR660mn to reach QAR1,022mn in 2026.
Source: Team Analysis, 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

1,200 823 900


783
742
QAR mn

660 699 800


1,000 665
700
800 600
500
600
400
1,893 954 936 957 990 1,020 1,048 1,073 1,094 1,116 1,134 1,151
400 300
200
200
100
0 0
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

Market Size (Volume, sqm) Market Size (Value, QAR mn)


Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics

146 Manufacture of Structural Metal Products


6.1.1.2. Trade Analysis
6.1.1.2.1. Historical Trade Analysis
Imports have followed the market size and real estate development trends. Primary interviews with aluminum and glass fabricators
indicate that 25% of the market, in value terms, was serviced by imports between 2001 and 2015. The key sources of imports are
the UAE, the Saudi Arabia and other GCC region countries. This implies that fabricators from UAE, Saudi Arabia bagged orders
for providing curtain walls, aluminum and glass doors etc. for projects in Qatar.

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

Import Volume Import Value


Source: ITC Trademap, Team Analysis

6.1.1.2.2. Share of Imports in Domestic Consumption


Imports account for 29.4% of Qatar’s market in quantity terms as imports is about 20% cheaper than domestic production110.
Imports include products from the aluminum and glass product segment, such as curtain wall, aluminum and glass doors, that are
fabricated in countries such as the UAE and Saudi Arabia, and sold to projects in Qatar.

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

1,800 1,588 1,610


557
1,500
467 473 1,238
1,099 1,103 1,107
1,200 997
952 364
805 844 326
900 323 324
616 644 280 293
237 248
600 465
181 189
300
328 435 455 776 779 1,748 1,121 1,136 672 568 596 782 704 874 1,336
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Domestic Sales Imports


Source: Team Analysis, ITC Trademap

110
Primary Interviews

Manufacture of Structural Metal Products 147


6.1.1.2.3. Trade Forecast
Imports: The import forecast of aluminum and glass works indicates that about 29.4% of the market requirements (in quantity
terms) will be met by imports. Primary Interviews indicate that imports are about 20% cheaper than domestic production. Imports
are likely to range from 280,522sqm in 2016 to 338,580sqm in 2026

Chart 130. Qatar’s Aluminum and Glass Works Import Forecast, 2015 to 2026
2,000 1,893 100%

1,800 90%

1,600 557 80%

1,400 70%
Thousand sqm

1,200 1,116 1,134 1,151 60%


1,073 1,094
1,020 1,048

% 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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

6.1.1.3. Pricing Analysis


The selling prices of aluminum and glass works are quoted on the basis of per sqm and vary as per the product type, size, design,
detailing, color and other specifications. The price ranges for key products are given below.

Chart 131. Price Range of Aluminum and Glass Works


1,800
1,600
1,600

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

148 Manufacture of Structural Metal Products


On average, imports are 20% cheaper than domestic production. Considering the inflation rates in Qatar, the average prices are
expected to reach QAR943 per sqm for domestic production and QAR754 per sqm for imports in 2026.

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

Domestic price Import price

Source: Team Analysis, Primary Interviews

6.1.2. Aluminum Sheet Cladding Works


Aluminum sheets are used as a cladding material on building
facades. These are commonly used in combination with
aluminum and & glass curtain wall products. Aluminum and
glass fabricators opine that the metallic luster of aluminum
sheet cladding improves the aesthetic appeal of the buildings,
giving it a modern appearance. These products are commonly
used in commercial developments and public buildings.
Raw materials include either finished aluminum sheets (solid
aluminum sheet or aluminum composite panels), silicon-based
fillers, and fixing accessories.

6.1.2.1. Demand-Side Analysis


6.1.2.1.1. Historical and Current Market Size
Real estate development trends have influenced the aluminum
cladding works market. The market size grew from 232,466sqm
(QAR37mn) in 2001 to 804,793sqm (QAR222mn) in 2008,
implying a CAGR of 19.4%. The slowdown of 2008–2009 led to
subdued real estate development activity in the subsequent
years, which reduced the market size to 402,541sqm in 2010.
Thereafter, the market recovered gradually and is estimated to
have reached 946,422sqm in 2015 (QAR273mn).

Manufacture of Structural Metal Products 149


Chart 133. Qatar’s Aluminum Sheet Cladding Works Demand, 2001 to 2015
1,500 300
273
1,400 261 280
1,300 260
1,200 222 240
1,100 220
190
1,000 175 200
Thousand sqm

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

6.1.2.1.2. Market Size Segmentation by Products 6.1.2.1.3. Demand Drivers


Most commonly used are non-fire rated aluminum sheet The demand for aluminum sheet cladding works is mainly
cladding also commonly known as aluminum composite panel driven by commercial developments, public buildings and
cladding that has 95% market share. multi-story residential buildings. Civil contractors undertaking
construction contracts constitute the customer segment.
Fire-rated aluminum cladding is a small segment used in
Architects who design buildings are the key influencers.
specified areas that are prone to fire. Solid aluminum panels
are used in fire-rated aluminum sheet cladding. Solid aluminum 6.1.2.1.4. Demand Forecast
panels have aluminum sheets on the either side of a corrugated
The decline in oil prices in 2014 and 2015 is likely to affect the
sheet, which gives it the desired thickness.
development of new real estate projects that are either planned
or underway. The market size is estimated to have reduced by
Chart 134. Aluminum Sheet Cladding Market Segmentation,
49.6% from 946,422sqm in 2015 to 476,888sqm in 2016.
2015
5% Going forward, the aluminum sheet cladding works market is
Fire rated expected to grow from 476,888sqm in 2016 to an estimated
575,586sqm in 2026, registering a CAGR of 1.9%. In value terms,
the market would grow at a CAGR of 4.5% from QAR141mn in
2016 to reach QAR218mn in 2026.

Aluminum sheet
cladding works
946,422sqm

95%
Non fire rated
Source: Team Analysis, Primary Interviews

150 Manufacture of Structural Metal Products


Chart 135. Qatar’s Aluminum Sheet Cladding Works Demand Forecast, 2015 to 2026
1,000 300
273
900 275
250
800 218
209 225
201
700 192
184 200
175
Thousand sqm

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

Market Size (Volume, sqm) Market Size (Value, QAR mn)


Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics

6.1.2.2. Trade Analysis


6.1.2.2.1. Historical Trade Analysis
Imports have followed the market size and real estate development trends. Primary Interviews with aluminum and glass fabricators
indicate that in 2015, 25% of the market, in value terms, was serviced by imports. Key sources of imports are the UAE, the KSA and
other GCC region countries.

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

Import Volume Imports Value


Source: ITC Trademap, Team Analysis

Manufacture of Structural Metal Products 151


6.1.2.2.2. Share of Imports in Domestic Consumption
Imports account for 27.5% of the Qatar market in quantity terms as it is about 12% cheaper than domestic production.

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

Domestic Sales Imports


Source: Team Analysis, ITC Trademap
6.1.2.2.3. Assessment of Export Opportunities
Qatar produces aluminum composite panels, which is a major raw material consumed in aluminum sheet cladding works. However,
aluminum and glass fabricators import aluminum composite panels from the UAE and the KSA, which is cheaper than domestic
production. Due to high cost of production in Qatar as compared to other GCC region countries, export opportunity for aluminum
sheet cladding works is unlikely.

6.1.2.2.4. Trade Forecast


The import forecast of aluminum sheet cladding works indicates that about 27.5% of the market requirements (in quantity terms)
will be met by imports. Primary interviews aluminum fabricators indicate that imports are about 12% cheaper than domestic
production. Imports are likely to range from 131,013sqm in 2016 to 158,128qm in 2026

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

547 558 567


600 524 536 60%
495 510
% share

477 468 478


500 150 153 156 158 50%
140 144 147
131 129 131 136
400 40%
27.5%
27.5% 27.5% 27.5% 27.5% 27.5% 27.5% 27.5% 27.5% 27.5% 27.5% 27.5%
300 30%
200 686 346 340 347 359 370 380 389 397 405 411 417 20%
100 10%
0 0%
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

152 Manufacture of Structural Metal Products


6.1.2.3. Pricing Analysis
The selling prices of aluminum sheet cladding works are
quoted on the basis of per sqm and vary as per the product
type, size, design, detailing, color and other specifications. The
price ranges from QAR260 to 350 per sqm.
On average, imports are 12% cheaper than domestic
production. Considering the inflation rates in Qatar, the
average prices are expected to reach QAR391 per sqm for
domestic production and QAR344 per sqm for imports in 2026.

Chart 139. Aluminum Sheet Cladding Works Price Range


400
350
350

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

Domestic price Import price


Source: Team Analysis, Primary Interviews

Manufacture of Structural Metal Products 153


6.1.3. Aluminum Doors, Windows and Partitions
This segment includes doors, windows and wall partitions made from solid aluminum with minimal or no glass panels fitted
in between. These products are used in all types of real estate asset classes, such as villas, multi-story residential buildings,
commercial buildings and public buildings. These are made from aluminum profiles and sections and are usually painted in
desired color.

Window

Door Partition

6.1.3.1. Demand-Side Analysis


6.1.3.1.1. Historical and Current Market Size
The market size for aluminum doors, windows and partitions has followed the development trends of commercial projects and
multi-story residential developments. The market size grew from 45,775sqm (QAR10.8mn) in 2001 to 160,763sqm (QAR84.1mn) in
2006, at a CAGR of 28.6%.

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

Market Size (Volume, sqm) Market Size (Value, QAR mn)


Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics

154 Manufacture of Structural Metal Products


However, the market size reduced in 2007 and recovered to
reach 188,423sqm in 2009. Thereafter, with the exception of
2012 and 2013, the market had been relatively flat in quantity
terms and reached 159,715sqm (QAR76.9sqm) in 2015.

6.1.3.1.2. Demand Drivers


Demand for aluminum doors, windows and partitions is driven
by requirements arising from real estate development projects
that include various types of asset classes, such as villas, multi-
story residential buildings, commercial developments, public
buildings and industrial facilities. Civil contractors undertaking
construction contracts comprise the customer segment.
Architects and interior designers who design doors, windows
and partitions are the key influencers.

6.1.3.1.3. Demand Forecast


The aluminum doors, windows and partitions market is
expected to grow from 159,715sqm in 2015 to an estimated
177,385sqm in 2026, registering a CAGR of 0.96%. In value
terms, the market would grow at a CAGR of 3.4% from
QA76.9mn in 2015 to reach QAR111.4mn in 2026. In the near
term, the fall in oil prices in 2014 and 2015 is likely to affect the
pace of construction activities across the country; hence, the
market size is expected to reduce from 159,715sqm in 2016 to
152,715sqm in 2017.

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

Market Size (Volume, sqm) Market Size (Value, QAR mn)


Source: Team Analysis, ITC Trademap, MDPS Annual Bulletin of Building Permits and Competed Building Statistics

Manufacture of Structural Metal Products 155


6.1.3.2. Trade Analysis
6.1.3.2.1. Historical Trade Analysis
Imports: The analysis of historical import data from 2001 indicates that imports have grown as per the real estate development
trends in Qatar. Imports increased from 35,857sqm in 2001 to 106,689sqm (QAR61mn) in 2006. Thenceforth, imports paced up to
169,780sqm (QAR92mn) in 2009, and peaked in 2012 to 380,643sqm (QAR119mn), when due to slowdown, inexpensive imports
were preferred over domestic production. Further, imports fell steeply in 2013, but gradually picked up growth in the subsequent
years to reach 134,970sqm (QAR62mn) in 2015.

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

Import Volume (000's sqm) Import Value


Source: ITC Trademap, Team Analysis

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

Export Volume (000's sqm) Export Value (QAR mn)


Source: ITC Trademap, Team Analysis

156 Manufacture of Structural Metal Products


6.1.3.2.2. Trade by Source and Destination
Imports: The analysis of aluminum doors, windows and partitions imports amounting to 122,756sqm from 2010 to 2015 indicates
that China (48%), the UAE (17%), the KSA (9%), the US (4%) and the UK (4%) are the major sources of imports.

Chart 145. Key Sources of Aluminum Doors, Windows and Partitions Imports, 2010 to 2015
100% 100%

90% Rest of the World 90%

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%

20% Saudi Arabia Kuwait 20%

10% 10%

0% 0%
2010 2011 2012 2013 2014 2015
Source: ITC Trademap, Team Analysis

Manufacture of Structural Metal Products 157


The small quantity of exports of aluminum doors, windows and partitions from Qatar has been to nearby countries, such as Kuwait
and the UAE, which have emerged as the leading destination for exports. During 2010 to 2015, the share of the UAE decreased
from 61.7% in 2011 to 1.3% in 2015 and that of Kuwait increased from 17.8% in 2012 to 93.9% in 2015.

6.1.3.2.3. Share of Imports in Domestic Consumption


Imports: The share of imports in Qatar’s aluminum doors, windows and partitions market declined from 78% in 2001 to 48% in
2004. However, the share of imports as a percentage of domestic consumption witnessed a gradual year-on-year increase. After
the global economic slowdown of 2008 and 2009, the share of imports further grew to reach 90% to 94% during 2009 and 2012,
due to a preference for inexpensive imports. As the economy recovered, the share of imports reduced marginally in 2012 and 2014
and reached 85% in 2015.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

6.1.3.2.4. Assessment of Export Opportunities


Qatar produces aluminum profiles and sections that are the major raw materials consumed in aluminum doors, windows and
partitions. However, the overall cost of production in Qatar is high as compared to other GCC countries. Therefore, export
opportunity for aluminum doors, windows and partitions is low. Analysis of export data indicates that across the 2001 and 2015
period, exports constituted only about 9.5% of the domestic production.

6.1.3.2.5. Trade Forecast


Imports: As the percentage of the share of imports has increased over the years, considering the near-term trends, the import
forecast for aluminum doors, windows and partitions indicates that about 88% of the market requirements (in quantity terms) will
be met by imports. Primary interviews with fabricators indicate that imports are 20% to 25% cheaper than domestic production.
Imports are likely to range from 137,480sqm in 2016 to 154,621sqm in 2026.

158 Manufacture of Structural Metal Products


Chart 148. Qatar’s Aluminum Doors, Windows and Partitions Import Forecast, 2015 to 2026
250 100%
87.9% 87.6% 87.2%
225 84.5% 90%

200 80%
172 174 176 177
167 170
175 160 160 164 70%
156 153 155
Thousand sqm

150 60%

% share
125 50%

100 149 150 152 153 155 40%


135 140 144 146
137 134 137
75 30%

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

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

2.31 2.35 2.38 45%


2.17 2.22 2.27
25
1.98 1.94 1.98 2.05 2.11 40% % share
20 35%
30%
15 25%
25 19 19 19 20 20 21 21 22 22 22 23
20%
10 15%
5 10%
9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 5%
0 0%
2015 2016e 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap

Manufacture of Structural Metal Products 159


6.1.3.3. Pricing Analysis
Selling prices for aluminum doors, windows and partitions are quoted on per sqm basis and vary as per the size, design, color and
other specifications. Currently, the 2016 domestic prices for aluminum doors, windows and partitions are in the range of QAR450
and QAR750 per sqm (average of QAR600 per sqm). On an average, imports are 20% to 25% cheaper than domestic production.
Considering the inflation rates in Qatar, average prices are expected to reach QAR770 per sqm in 2026 for domestic production
and QAR607 per sqm for imports.

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

Domestic price (QAR/sqm) Import price (QAR/sqm)


Source: Team Analysis, Primary Interviews

6.1.4. Aluminum Railing and Fencing


Aluminum staircase railings are similar to steel railings and are
installed along staircases to offer support to people as they
climb up and down. These are made from aluminum sections
or profiles and can be combined with other materials, such as
glass and stainless steel. Some staircase railings have intricate
design patterns that are usually painted in golden color and
made from cast aluminum.
Aluminum fencing is used along the boundary walls of real
estate developments and along road medians and edges of
footpaths. It is made from the sections or profiles of aluminum
and is fixed to the wall or to the ground.

6.1.4.1. Demand-Side Analysis


6.1.4.1.1. Historical and Current Market Size
The market size for aluminum staircase railings and fencing has
followed the real estate development trends as this product
can be used in all types of projects.

160 Manufacture of Structural Metal Products


Chart 151. Qatar’s Aluminum Railing and Fencing Demand, 2001 to 2015
250 27.7 28.0 30
26.6
23.5
25
200 21.4
20.7
20
Thousand sqm

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

Manufacture of Structural Metal Products 161


6.1.4.2. Trade Analysis
6.1.4.2.1. Historical Trade Analysis
Imports: The analysis of historical import data from 2001 indicates that imports have grown as per the real estate development
trends in Qatar. Imports increased from 12,501 linear meter in 2001 to 75,605 linear meter (QAR8mn) in 2008. From 2010, imports
reduced substantially and reached 24,812 linear meter (QAR4mn) in 2015.

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

Import Volume Import Value


Source: ITC Trademap, Team Analysis

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

2 0.3 0.4 0.3 0.5


3.1
0.2
1
1.3 1.4 1.2
0.7
0 0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Export Volume Export Value


Source: ITC Trademap, Team Analysis

162 Manufacture of Structural Metal Products


6.1.4.2.2. Trade by Source and Destination
Imports: The analysis of aluminum staircase railings and fencing imports amounting to 133,226 linear meters from 2010 to 2015
indicates that the UAE (51%), the UK (15%), China (10%), the KSA (5%) and Germany (3%) are the major sources of imports.

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.

6.1.4.2.3. Share of Imports in Domestic Consumption


Imports of aluminum staircase railings and fencing fluctuate depending on the prevailing market conditions. During the peak
of construction activity between 2007 and 2009, imports accounted for an average of 61% of the market. However Qatar’s
dependence on imports reduced from 40% in 2010 to reach 23% in 2015.

Manufacture of Structural Metal Products 163


Chart 157. Qatar’s Aluminum Railing and Fencing Imports Vs Domestic Sales, 2001 to 2015
250 100%
90%
200 80%
68%
Thousand linear meter

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

6.1.4.2.4. Assessment of Export Opportunities


Qatar produces aluminum profiles and sections that are the major raw materials consumed in aluminum staircase railings
and fencing. However, the overall cost of production in Qatar is high as compared to other GCC countries. Therefore, export
opportunity for aluminum staircase railings and fencing products is low. Analysis of export data indicates that across the 2001 and
2015 period, exports constituted only about 2.3% of the domestic production.

6.1.4.2.5. Trade Forecast


Imports: As the percentage of the share of imports has fallen over the years, considering the near-term trends, the import forecast
for aluminum staircase railings and fencing indicates that about 36% of the market requirements (in quantity terms) will be met
by imports. Primary interviews with railings and fencing fabricators indicate that imports are 30% to 35% cheaper than domestic
production. Imports are likely to range from 23,663 linear meter in 2016 to 26,614 linear meter in 2026.

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

Domestic Sales Imports % Share of Imports


Source: Team Analysis, ITC Trademap

164 Manufacture of Structural Metal Products


Exports: The export forecast indicates that exports may have a minor opportunity as about 2.3% of the domestic production is
likely to 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 965linear meter in 2016 to 1,165
linear meter in 2026.

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

Domestic Sales Exports Exports as % of domestic production


Source: Team Analysis, ITC Trademap

6.1.4.3. Pricing Analysis


The selling prices of aluminum staircase railings and fencing are quoted on per linear meter basis and vary as per the design, size,
paint color, type of infills (glass, stainless steel) and other specifications. Currently, the 2016 domestic prices are in the range of
QAR250 and QAR 450 per linear meter (average of QAR300 per linear meter). On an average, imports are 30% to 35% cheaper
than domestic production. Considering the inflation rates in Qatar, the average prices are expected to reach QAR385 per linear
meter in 2026 for domestic production and QAR211 per linear meter for imports.

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

Domestic price Import price

Source: Team Analysis, Primary Interviews

Manufacture of Structural Metal Products 165


6.1.5. Supply-Side Analysis
6.1.5.1.1. Market Structure
The structure of Qatar’s architectural aluminum fabrication market that comprises about 70 firms is fragmented with the
large-sized players constituting about 39.3% share of the market. Based on the capacities of the firms, they can be classified as
large, medium and small. Most large- and medium-sized architectural aluminum fabrication firms have capabilities to undertake
fabrication of all types of architectural aluminum products, such as aluminum and glass works, sheet cladding, doors, windows
and partitions, staircase railings and fencing, while small firms are restricted to less-intensive fabrication works and assembly of
imported aluminum and glass works.

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

Installed capacity (sqm) Capacity Utilization (%)


Source: Team Analysis, Primary Interviews, MDPS Annual Bulletin of Industry and Energy Statistics 2015

Small-sized Firms Medium-sized Firms

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

There are 15 medium-sized firms, each having an average


installed capacity of over 15,000sqm per annum and less than
240,000sqm per annum. The medium-sized firms collectively
have 37.9% share of the market in volume terms and their
average capacity utilization is 60%.

166 Manufacture of Structural Metal Products


Table 17. Architectural Aluminum Fabrication Market Structure Snapshot

Architectural Aluminum Fabrication Units Large Medium Small Total

Number of players Number 5 15 50 70

Capacity sqm/month 20,000 7,500 1,250

Capacity per category 1,200,000 1,350,000 750,000 3,300,000

Avg. Capacity utilisation % 70.0% 60.0% 65.1% 65%

Sales per category 840,000 810,000 488,320 2,138,320

Market share % 39.3% 37.9% 23% 100%

6.1.5.1.2. Profiling of Key Domestic Players


Table 18. Architectural Aluminum Fabrication: Key Domestic Players

Company Year of establishment Products Installed capacity (sqm/pa)

• Curtain walls
• Structural glazing
• Cladding
AluTech 1995 500,000
• Glass doors
• Auto/revolving doors
• Fire-rated doors with glass

• Doors and windows


• Partitions and curtain walls
Specialized Aluminum and
1983 • Structural glazing 400,000
Steel Company (SASCO)
• Cladding
• Skylights and domes

• 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

• Doors and windows


• Cladding
• Curtain walls
• Skylights
Alu Nasa Company 1992 250,000
• Rolling shutters
• Grills
• Auto/revolving doors
• Handrails

Manufacture of Structural Metal Products 167


Company Year of establishment Products Installed capacity (sqm/pa)

• Doors and windows


• Kitchen cabinets
Khalory Aluminium Factory 1976 60,000
• Big store cabinets
• Carpentry

• 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

• Doors and windows


• Joinery
Al Shaheen Aluminium
2005 • Kitchens 20,000
Factory
• Domes
• Internal partitions

• Curtain walls
• Cladding
• Composite panels
Ismail Bin Ali Aluminium 1982 20,000
• Spider systems,
• Glazing
• Sliding and revolving doors

• Doors and windows


Al Adala Gulf Aluminium
1986 • Kitchen cabinets 20,000
And Carpentry
• Big store cabinets

6.1.5.1.3. Business Model Analysis


The architectural aluminum fabrication market is dominated by machinery) to handle large-scale projects. Small players focus
large players that have the capacity and capability to focus on on singular projects involving fabrication of doors and windows,
a varied mix of products, projects and customers. Large players cladding, rolling shutters, grills, handrails and fencing (average
typically target large project works that include doors, windows, order size: QAR1mn to QAR5mn). Small and medium players
partitions, curtain walls, structural glazing, sheet cladding, also undertake assembly of imported architectural aluminum
skylights and domes. These are high-volume projects (average fabricated products, such as curtain walls, doors, windows,
order size: QAR50 to QAR100mn). Being well-established partitions, structural glazing and sheet cladding.
players, large-sized firms have a competitive advantage over
Given the low-entry barriers, widespread applications within
other players in terms of financial strength, local expertise as
architectural aluminum fabrication and a large market size, this
well as access to major projects across the country.
has been an attractive sector for Qatari entrepreneurs. The
The medium-sized players mainly target small-scale projects market is currently oversupplied, with several firms operating in
(average order size: QAR5mn to QAR10mn) involving doors, the market and each targeting the same project; competition
windows, partitions, curtain walls and sheet cladding since to win contracts is intense.
they do not have sufficient funds, capacity (manpower and

168 Manufacture of Structural Metal Products


6.1.5.1.4. Domestic Production Competitiveness Time to Market: According to industry players, procuring
Key factors that influence the competitiveness of architectural raw material is time consuming, which leaves them with
aluminum fabrication include raw material, labor, market size very little time to fabricate and deliver finished products to
and the impact of competition. customers. Raw material inventory requirement increases since
manufacturers either have to procure raw materials in advance
Raw Material: Qatar has local production of aluminum that add to the inventory costs or have to purchase raw
extrusions used in several applications; however, it does materials at current market rates, which may be higher than the
not have facilities for glass and an aluminum rolling plant quotations submitted for job works, adversely affecting their
for aluminum sheet. The domestic raw material production price competitiveness.
capacity for glass and aluminum sheets is underdeveloped
in the country; therefore, manufacturers in Qatar depend on Number of Players: The architectural aluminum fabrication
imports to meet their raw material needs. market is fragmented with top-5 players capturing about
39.3% of the market. Medium and small players typically target
Our primary research indicates that the raw material is smaller scale projects than the market leaders. The market
procured from the UAE, Saudi Arabia, Belgium, China and being oversupplied is characterized by fierce competition and
Turkey. Expensive raw material significantly impacts the cost of price sensitivity.
domestically produced finished goods.
High Operational Expenses: Our Primary interviews indicate 6.1.6. Demand–Supply Analysis
that the operational costs are significantly higher in Qatar due Considering the 70 firms operating in the market, the installed
to higher labor costs and rent than in the nations exporting capacity is 3,300,000sqm per annum. This does not include
to Qatar — Kuwait, the UAE, Saudi Arabia, India, China, assumptions for new players having plans to enter the market
Turkey, etc. This adversely affects the price competitiveness of that have not been announced so far. As per market size
domestic production. estimates (including imports projection), the demand–supply
gap indicates an oversupply of 1,553,684sqm per annum in
2020 to 1,337,851sqm per annum in 2026.

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)

(1,431) (1,395) (1,367) (1,338)


(1,554) (1,509) (1,467)
(1,664) (1,695) (1,661) (1,605)
(2,000)
2015 2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

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

Manufacture of Structural Metal Products 169


6.1.7. Regulatory Analysis
Qatar Construction Specification 2014: As architectural
aluminum fabrication products are used in the construction
sector, their production, installation and usage are mainly
regulated by the following sections of Qatar Construction
Specifications (QCS) 2014.
a) QCS 2014 Section 16: Structural Works
This section has general instructions and regulations
related to materials, drawing, fabrication, welding,
bolting, accuracy of fabrication, erection, accuracy of
erected metal work and protected treatment.
a) QCS 2014 Section 17: Metal Work
This section has general instructions and regulations
related to material classification, metal doors and
windows, architectural metalwork, light metal support,
cladding support and workmanship.
In addition to the above, architectural aluminum fabrication
units are expected to be familiar with other relevant sections
of the QCS that regulate construction activities having an
interface with aluminum fabrication products. These sections
include section 13 (Masonry), section 14 (Roofing), section 4
(Foundation and retaining structures) and section 5 (Concrete).
Ministry of Environment: Aluminum fabrication units need to
be approved by the Ministry of Environment.
Civil Defense Department (Ministry of Interior): All building
material products need an approval from the Civil Defense
Department (Ministry of Interior) as per Emiri Decree No.
9/2012. Aluminum fabrication units have to comply with
applicable fire safety norms.
ISO Certification: Obtaining ISO certifications (Quality 9001,
OHSAS 18001 and Environment 14,001) are vital for tendering
purposes.
Apart from the above, all prospective entrepreneurs need to
follow applicable laws on company registration and industrial
license to obtain land and building permissions for setting up
an aluminum fabrication facility in Qatar.

170 Manufacture of Structural Metal Products


6.1.8. SWOT Analysis and Michael Porter’s Five Forces analysis
6.1.8.1. SWOT Analysis

Figure 20: Architectural Aluminum Fabrication SWOT Analysis

Architectural Aluminum Fabrication

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.

Manufacture of Structural Metal Products 171


6.1.8.2. Michael Porter’s Five Forces Analysis

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.

172 Manufacture of Structural Metal Products


6.2. Critical Success Factors
Critical Success Factors include the following:
Figure 22: Critical Success Factors - Architectural Aluminum Fabrication

1 Access to Raw Material


Raw material forms an important part of the costs incurred by an architectural
aluminum fabrication unit. Costs related to these are influenced by global
trends in the commodity prices. Entrepreneurs are unlikely to have any
control over raw material prices. Hence, competitiveness in procurement and
compliance with good practices in raw material and inventory management,
such as economic order quantity and just-in-time methods, is essential

2 Access to Skilled Laborers


Creativity and workmanship are the 3 Access to Markets and Strategic Linkages
key tools for differentiating products with Civil Contractors
in a competitive market. Hiring skilled
staff, such as designers, welders and Entrepreneurs need to develop strong
supervisors, is highly important. relationships and strategic linkages with civil
contractors focusing on high-rise buildings
and commercial real estate projects as this
would help in sustaining a steady order
book.
4 Operational Efficiency
Efficiency in day-to-day operations, such
as fabrication, supervision and other shop
floor activities, can help in cost optimization. 5 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.

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.

Manufacture of Structural Metal Products 173


High High High High High

Access to markets and Investment in


strategic linkages machinery

Access to Access to skilled Operational Technical Customer


raw material labourers efficiency know-how service

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.

174 Manufacture of Structural Metal Products


Manufacture of Structural Metal Products 175
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Manufacture of Structural Metal Products 177


178 Manufacture of Structural Metal Products
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whatsoever for any direct or indirect losses arising from use of this publication. Any party that obtains access to this publication or a copy
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Manufacture of Structural Metal Products 179


About QDB
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grow Qatar’s private sector and diversify its economy. His Highness
Sheikh Hamad Bin Khalifa Al Thani, the Father Amir, identified
these as vital tasks in developing Qatar into a modern state. Since
our establishment in 1997, we have been at the forefront of these
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For more information


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