Qatar’s market size for glass and glass products was estimated to be QR711m in 2015. Flat glass and its downstream products, which are primarily used in the construction sector, accounted for approximately 50 percent of the total market size for glass products, said a latest report by Qatar Development Bank (QDB) yesterday.
The report also noted that, fiber glass, which is primarily used in the production of GRP and FRP pipes, storage tanks, decorative items, manhole linings and pleasure boats, accounted for 28 percent of the market size.
In its maiden release of a 24-part research series, QDB published its report “Manufacture of Glass and Glass Products,” which was based on the development agency’s study of the glass manufacturing industry in Qatar.
The results of the study also showed that 13 domestic companies currently operate in the glass and glass products sector, all of them in the flat glass processing segment. The cumulative gross value added (total production less the cost of raw materials) by these companies was QR72m in 2015, up significantly from QR7m in 2006. These companies collectively employed 859 full-time employees in 2014.
The report comes as the first publication in a multi-part series, which will shed light on various industrial sectors, economic activities and areas of national growth. The comprehensive report contains analytics, quantitative data about the labour force involved in the glass manufacturing sector in Qatar as well as new statistics about the rates of growth and decline in sectoral demand.
Abdulaziz bin Nasser Al Khalifa, CEO of QDB, said: "At QDB, we are executing a clearly drawn strategy designed to resolve the constraints faced by local small and medium-sized enterprises (SMEs). Entrepreneurs consistently face the dilemma of having to make important decisions without having access to accurate information and relevant market studies.”
He added: "Our report shines a unique look at the industry and includes compelling statistics and analysis based on the latest data recorded in the Qatari market as well as other potential markets.”
The report also showed that the gross value added (total value of processed flat glass less the cost of imported unprocessed flat glass) by domestic companies has increased substantially, from QR23m in 2009 to QR72m in 2014. This growth rate of 26 percent was explained through the result of setting up new flat glass processing facilities, which are capable of offering high value-added products, such as bent glass and laminated glass. On the domestic demand for flat glass, the report projected an increase from approximately 33,700 tons in 2015 to approximately 34,900 tons in 2026.
There was a projected increase on the domestic demand for processed flat glass, from approximately 41,100 tonnes in 2015 to approximately 45,200 tonnes in 2026. On the other hand, the report revealed that there was a drop in demand for glass fiber, from approximately 67,000 tonnes in 2008 to approximately 26,000 tons in 2015, attributing the decline to the postponement and cancellation of major projects.
The report suggested that a typical flat glass production facility needs to produce and sell in excess of 150,000 tonnes of flat glass per annum, while exporting more than 75 percent of its annual output in order to be financially viable.
