Coatings Market Spawns Saudi Committee
WEDNESDAY, MAY 17, 2017
Hoping to capitalize on what they feel is a prime financial opportunity, officials from Saudi Arabia announced Thursday (May 11) that the kingdom will establish its first committee to maximize its interests in the paints and coatings industry.
Majid Al Kassabi, the Saudi Arabian Minister of Commerce and Investment, will spearhead the committee’s launch on May 24 at the Saudi Arabian General Investment Authority in the capital city of Riyadh.
|
|
| Ismael Cacharro, CC BY-SA 4.0 via Wikimedia Commons |
|
The plan to delve deeper into exploiting the lucrative paints and coatings sector comes on the heels of the Saudi Arabian government citing the kingdom’s geographic location and the growing local and regional demand for finished products. |
“As the advocate for local and foreign investors in the Kingdom, SAGIA stands ready to receive all inquiries and assist investors in their journey to establish themselves in this sector that has huge untapped potential," said Turki Al Hamdan, adviser for Petrochemical Industries at SAGIA.
Vision Expanding
Saudi Arabia has been meeting with local and foreign investors under Vision 2030, which is the country’s program to enhance the development and diversification of its economy. Government stakeholders such as the ministries of Energy; Industry and Mineral Resources; and Saudi Customs; and the Small and Medium Enterprise Authority will engage with CEOs from local and foreign private sectors to dissect concerns and seek solutions to substantive issues affecting the market’s investment climate.
In August, SAGIA chose The ChemQuest Group Inc., a Cincinnati-based international business strategy firm that specializes in specialty chemicals, to undertake a technical and market study of paints and coatings within Saudi Arabia.
ChemQuest has provided its recommendations, developed on the basis of competitive criteria from model countries such as the United States, Germany and China, that conform to the kingdom’s Vision 2030 strategy.
Fruitful Market
SAGIA’s plan to delve deeper into exploiting the lucrative paints and coatings sector comes on the heels of the Saudi Arabian government citing the kingdom’s geographic location and the growing local and regional demand for finished products. Government officials pointed to the Saudi paints and coatings market’s growth rate of 5.5 percent per year as further impetus to pursue their interests.
Saudi Arabia is a five-hour flight from countries that boast 55 percent of the world’s $140 billion paints and coatings industry, including India, Africa, and the rest of Southeast Asia.
The private sector has taken notice. Since the launch of a paints and coatings initiative, 13 local and foreign investors have agreed to sign non-binding statements of intent with SAGIA to discuss investments in Saudi Arabia.
“The SOIs are an indication that there is significant interest in exploring opportunities in the Saudi paints and coating market," Al Hamdan said.
Tagged categories: ChemQuest; Coating chemistry; Coating Materials; Coatings; Construction chemicals; Market; Market research; Market share; Marketing
