Middle East & Africa Flat Glass Market Outlook, 2029

Market Dynamic

Market Drivers • Rising Construction and Infrastructure Development in Saudi Arabia : Saudi Arabia has been experiencing significant growth and development in the construction and infrastructure sectors in recent years. The government has been actively investing in various projects to diversify the economy and support the country's long-term vision for development, known as vision 2030. Saudi Arabia embraces smart city initiatives to enhance livability, sustainability, and efficiency. For instance, the King Salman Energy Park (SPARK) aims to create an integrated city focused on energy-related industries. It will provide various services and infrastructure to support the oil, gas, and petrochemical sectors. • Growing Population and Urbanization in the Middle East : Middle East has experienced significant population growth and urbanization in recent decades. The Middle East region's population is growing at an average rate of 1.56%. This is well above the global rate of 1.1% population growth. High rates of migration, high birth rates, higher life expectancy and lower infant mortality rates contribute to higher populations and also the improvements in healthcare and living conditions such as wealth, employment environment, education, and others have contributed to the population expansion. Market Challenges • Lack of Availability and Fluctuating Prices of Raw Materials : The cost of raw materials used in glass production, such as silica sand, soda ash, limestone, and natural gas, can be volatile. Fluctuations in raw material prices can impact the profitability of glass manufacturers, making it challenging to maintain stable pricing and margins. Fluctuations in raw material prices make it challenging for glass manufacturers to plan and forecast accurately. Rapid price changes can disrupt budgeting, pricing strategies, and long-term business planning. This uncertainty can make it difficult for companies to make informed decisions and investments, hindering their growth and stability. Thus, the lack of availability of raw materials or fluctuating raw material prices is restraining the market growth. • Competition from Alternative Materials : The glass market faces intensified competition from alternative materials such as plastics, composites, and advanced polymers. The quest for lightweight, flexible, and cost-effective solutions challenges the traditional dominance of glass in certain applications. However, the inherent properties of glass, including transparency, recyclability, and durability, position it as a resilient contender, prompting continuous innovation to address evolving market dynamics and sustain its relevance amidst alternative material competition. Thus, the competitiveness of these alternative materials may vary across different sectors and applications within the market, which is expected to challenge the market growth. Market Trends • Increasing Demand from the Construction Sector : The most significant trend impacting the flat glass market in the Middle East is the robust growth in the construction sector. Countries like the United Arab Emirates (UAE), Saudi Arabia, and Qatar are investing heavily in large-scale infrastructure projects, residential buildings, and commercial complexes. This surge in construction activity is primarily driven by government initiatives aimed at urbanization and economic diversification. For instance, Saudi Arabia's Vision 2030 plan emphasizes the development of new cities and infrastructure to reduce the country's dependence on oil revenues. Similarly, Qatar's National Vision 2030 and its preparations for the FIFA World Cup have led to substantial investments in construction. The demand for flat glass products, including windows, facades, and interior applications, has skyrocketed as a result. • Emphasis on Energy Efficiency and Sustainability : As environmental concerns rise, there is a growing demand for energy-efficient materials, particularly flat glass products that contribute to reduced energy consumption in buildings. Low-emissivity (Low-E) glass, which minimizes heat transfer, is gaining popularity as builders and architects seek to create more sustainable structures. This trend is supported by government regulations and initiatives promoting green building practices across the region. The integration of smart city projects further enhances the demand for innovative glass solutions that improve energy efficiency. Additionally, the solar energy sector is becoming increasingly important, with flat glass being a critical component in solar panel manufacturing. The Middle East's commitment to expanding its renewable energy capacity aligns with the rising demand for flat glass in photovoltaic applications, creating significant opportunities for manufacturers in this segment.

Key Development

• In August 2022, Mexico-based company, Vitro, unveiled its plan to construct a flat and container glass plant in Egypt. The company wants to invest in a 350,000 m2 (meter square) flat glass factory and a 150,000 m2 container glass facility under a free zone framework, with a total investment of USD 400 million. • In February 2023, AGC Inc. and Saint-Gobain, two of the world's leading flat glass producers in terms of sustainability, announced a collaboration on the design of a prototype breakthrough flat glass line that is projected to considerably cut direct CO2 emissions.