Market Assessment for Establishing a Steel Fabrication Unit in Bahrain

• GCC steel fabrication market is approximately 2% of the global demand. Projects centered around short and long-term strategies such as Saudi Vision 2030, Expo 2020, FIFA World Cup 2022 were the key factors contributing to the growth of the market
• Sheet/ plate fabrication is the largest product segment, accounted for about 47% of the total demand in 2020. Fabrication of tanks, containers, plants, roof and other architecturally complex designs require high use of steel sheets and light sections
• Market is highly fragmented with no company commanding controlling stake. AIC Steel is the largest fabricator in the region; however, accounted for only 10% of the regional demand in 2020. Over 70 companies operate in the region, and very limited companies operate across GCC
• Demand-supply gap in 2020 was estimated to be about 1.62 million tons which is expected to rise to 6.16 million tons by 2025. Mega projects such as petrochemical complex in Saudi Arabia, and oil refinery in UAE are expected to drive future demand
• High-value products such as complex design fabricators, roof designs, architecturally complex frames, attracts high profit margins and thus company should focus on positioning in this segment

Table of Contents

Demand Side Assessment – Market Opportunity Analysis

• Steel structure fabrication value chain (GCC)
  • Key elements
  • Status in GCC
  • Revenue share at each step
  • Contribution margin
• Global structural steel market (2020-2025)
  • By volume
  • By value
• GCC Market assessment
  • Market size – current and outlook (2020-2025) – volume and value
    • By product category
      1. Sections
      2. Plates
      3. Beams
    • By End use industry
      1. Construction
      2. Industrial
      3. Oil & gas
      4. Others
    • By country
      1. UAE
      2. Saudi Arabia
      3. Qatar
      4. Kuwait
      5. Oman
      6. Bahrain

Supply Side Assessment – Competitive Benchmarking

• Demand-supply gap
  • By product category
• Key demand drivers such as growing construction activity, increasing manufacturing, investment in infrastructure, demand for pre-engineered buildings etc.
  • Short term
  • Medium term
  • Long term
• Major challenges such as growing raw material cost, overcapacity.
• Latest industry trends such as fabrication technological advancement, demand for technical design support from customers, construction technology changes
  • Technology trends in fabrication
  • Technology trends in EPC
  • Industry trends (M&As, Consolidation, bankruptcy, capacity enhancement etc.)
  • Product trends (design changes, material shift etc.)
• Impact of Chinese products
• Supply chain vertical consolidation analysis – forward/backward integration
• Trade analysis
  • Import of structural fabricated products
    • Key source countries
    • Major product categories
    • Key factor driving the import
  • Export of structural fabricated products
    • Key destinations
    • Major products
    • Key factor driving the export
  • Operational benchmarking (GCC region)
    • Best practices followed by leaders
    • Major process flow
    • Technical design support
  • Competitive Landscape
    • Major structural steel fabricator in GCC
    • Market share analysis (top 5 companies in GCC)
    • Company profiles (top 5)
      • Background
      • Business and service overview
      • Financials
      • Production capacity
      • Production technology
      • Pricing
      • Partnerships and tie-up for sales
      • Key customers
      • Presence in GCC
      • Fabrication technology -manual welding, painting or robotic welding
      • Factors which influence their business in positive and negative ways
      • Practices/ Processes followed
      • What are the challenges faced in their nature of business
    • End user assessment
      • Customer drivers of choice
      • Current need gaps
      • EPC inclination to partner with SULB
      • Key risks
    • Investment drivers and challenges
      • Market attractiveness
      • Entry feasibility
      • Major risks
    • Recommendation and conclusion