Construction sector turnaround spurs demand for rubber products

 By Zainab Mansoor

With the economic turbulence well in the past for the Middle East region, a lot of positive vibes seem to be emanating from analysts, indicating slow but steady recovery of countries located in this zone. According to the World Bank's latest report "Regional Economi c Out look: MENA f a c ing challenges and opportunities", GCC countries are on the right course, expecting to maintain growth surpassing 5% in 2011, whilst the wider Middle East and North Africa region will experience slightly lower growth at 3.6% as increasing fuel and commodity costs ignite inflation.
Opportunities manifesting in the medium and long-term indicate sustainable growth and economic recovery; something sorely lacking off late. "Historic opportunities for greater openness and citizen participation in economies across the Middle East and North Africa that, if strongly managed over the transitions ahead, could see a significant boost to economic growth and living standards in the medium term," said Mr. Shamshad Akhtar, World Bank Vice President for MENA Region.
Economic growth in the region exemplifies infrastructural initiatives and construction activities. United Arab Emirates has shown reasonable resilience in the last two years; whilst Qatar, Saudi Arabia and Kuwait are booming with high-profile construction activities. The recent political fallout and civic unrest in Egypt, Syria, Yemen and the adjoining areas do raise short-term growth concerns but in the medium term, opportunities of massive nature exist.

Setting the right direction for rubber products
According to an IMF report, Qatar's decision to host the 2022 FIFA World Cup has set the country to be the world's largest construction site in dollars per square metre, with almost $100 billion in planned investments over the next 12 years. Such projected growth indicates phenomenal use of rubber and rubber related products in the Middle Eastern region.
With the Qatari government announcing heavy investments in costly projects that include a major remodeling and/or construction of 12 stadiums and renovation of airports, seaports and other logistics, the Shaikhani Group, leading manufacturer of rubber and rubber related products is very keen to tap into the extremely lucrative market. According to company executives, the firm is aiming to grab a handsome share of approximately $100 billion infrastructure spending that is expected during 2011 and 2015. It was also seeking to supply for prospective projects, one of which is to develop 33,000 housing units in 2011.

Established in 1993 , Rubber World Industries, part of the illustrious Shaikhani Group manufactures a range of comprehensive rubber insulated products, fulfilling 56% of the region's requirements. Mr. Muzammil Shaikhani, Managing Director at Rubber World Industries touted Saudi Arabia, Qatar and Iran as the fast-growing economies in the region.
This year, the company launched a new range of product lines; Slitting tubes, slitting tubes with adhesives, cladding tubes and sheets with aluminum and cladding sheets. All products hold environmental friendly features, are cost-effective, dust and fibre-free, making them more resistant and strong. Also, the new product lines are particularly targeted at meeting the ever growing demand for elastomeric rubber insulated products, which are vital for construction and development projects due to their durability and pricing. The company aims to distribute the products to all leading GCC countries and has further revealed plans of investing $5 million towards theBasketball Shoes