Albany, NY -- (SBWIRE) -- 07/29/2016 -- Innovation and customization are the two strategies on which companies in UAE and GCC geotextiles and geogrids market are focusing to increase their sales, reports Transparency Market Research in a new study. Given the highly fragmented market, more agreements to guarantee the supply of specific products are expected to be signed between manufacturers and suppliers. The leading companies in the geotextiles and geogrids industry in UAE and the GCC are Alyaf Industrial Co.Ltd., Al Latifia Factory for Plastic Mesh, BMC Gulf, and Exeed Industries.

As a result of the existence of small companies at the regional level, the geotextiles and geogrids market is highly fragmented in nature. The regional companies are focusing on the regional demands, which is creating a challenge for the leading manufacturers to maintain their stand in the regional market. The steady similar pricing strategies adopted by the manufacturers of geotextiles and geogrids is the reason for the oligopolistic nature of the market. This has compelled manufacturers to come up with innovations to customize their products so that customers can differentiate them from other products in the same segment.

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Development of Gulf Railway Project to Increase Demand for Geotextiles and Geogrids

As geotextiles and geogrids are capable of holding soil, the construction engineers of the Gulf Railway project are looking forward to use it in the construction of railways in the Gulf regions. Due to the harsh topography of the Gulf region, geotextiles and geogrids are suitable for the construction of railway lines in the area. . Geotextiles and geogrids also have additional advantages of improving sand texture, preventing soil erosion and for filtration purposes in underground drainage services. These positive properties are compelling engineers to use geotextiles and geogrids underneath railway tracks to reduce disruption caused by train movement and maintaining the stability of land during sand storms and high temperature.

The Gulf Railway projected flourished when the countries in the GCC shifted their focus towards strengthening trade when economic growth started in MENA. The project is aimed at connecting six GCC countries. This has created a positive impact on the sales of geogrids and geotextiles as they help in the seamless train movement in extreme areas. The need for alternative solutions for smooth train movement in GCC authorities is expected to augment the growth of the geotextiles and geogrids market in GCC and UAE.

Sales of Geotextiles and Geogrids to Increase Due to Road Development Projects

The road transportation system in the GCC is well developed as it is a primary mode of transportation. Several countries in the GCC have a wide a high capacity road network. But due to the extreme weather conditions and unfavorable topography, the quality of infrastructure has been poor in this region. Moreover, due to road infrastructural gaps between rural and urban roads, internal trade is likely to get affected. Additionally, as a result of the increasing congestion in urban areas and high traffic density, UAE and the countries in the GCC are focusing on the need for improved road transport to support the emerging economic development. TMR also states in its report that the growing road development projects in these regions will augment the sales of geotextiles and geogrids.

Thus, these factors are expected to improve the demand for geotextiles and geogrids in the GCC and UAE, as they are the ideal products for achieving road transport stability and high qualities in these regions.

Fluctuating Cost of Raw Materials to Affect the Sales of Synthetic Geotextiles and Geogrids

Geotextiles and Geogrids are mostly made of a combination of natural or synthetic polymers. Polymers such as polypropylene and polyester are derived from petroleum. Due to the rising concerns about depleting petroleum reserves, there has been a shortage of its derivative materials in the market, which is in turn leading to a rise in the price of these materials. The inclination of consumers towards geotextiles made of natural fibers due to their low cost, is likely to hamper the sales of the synthetic geotextiles and geogrids.

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In this regard manufacturers are searching for innovative approaches that will lower the manufacturing cost of polymer geogrids and geotextiles, helping them sustain its demand in the region.

The demand for geotextiles in the GCC (excluding UAE) in 2015 was valued to be US$135.4 mn and expected to reach US$200.5 mn by 2019. Whereas, the demand for geotextiles in UAE was vworth US$36.4 mn in 2015 is anticipated to reach US$52.2 mn by the end of 2019.

The review has been based on the findings of a TMR report titled "Geotextiles and Geogrids Market in UAE and GCC - Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 - 2019"

The market has been segmented as below:

Geotextiles Market - Product Segment Analysis
-Non-woven
-Woven
-Knitted

Geotextiles Market - Application Analysis
-Road construction
-Drainage
-Erosion control
-Others (Landfills)

Geogrids Market: Application Analysis
-Roadways
-Landscaping
-Others

Geotextiles Market - Regional Analysis
-Gulf Cooperation Council (excluding UAE)
-United Arab Emirates

Geogrids Market - Regional Analysis
-Gulf Cooperation Council (excluding UAE)
-United Arab Emirates

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