UAE Silica Sand Market

UAE Silica Sand Market Analysis

The UAE Silica Sand Market is expected to register a CAGR of greater than 5% during the forecast period.

Silica sand is used as an ingredient in the industrial concrete mixture, cement, and specialty sand products. The construction industry, a labor-intensive sector, suffered greatly at the onset of the COVID-19 pandemic. Prolonged lockdowns, strict social distancing norms, and disruptions in the supply chain led to delays in various project completions. In some cases, projects were completely shut down owing to bankruptcy.

• However, with the manufacturing and services sector slowly resuming back to normal, the construction industry is expected to be revived alongside the revival of the country's economy.
• The growing population and rising tourism in the region are expected to drive the need for commercial and infrastructure construction strongly. This growth is expected to drive the demand for silica sand in the region.
• On the other hand, the risk of being substituted by other products and the development of sand-free construction products could potentially hinder the growth of the silica-sand market.
• The UAE government, however, took due cognizance of the potential bloom of tourism in the coming years and announced several mega projects over the next several years. This move could potentially strengthen the demand for the silica sand market within the region.

UAE Silica Sand Market Trends

Growing Land Reclamation to Drive Demand for Silica Sand

• Land reclamation is the process of artificially creating new land. This is done by draining muddy areas or filling existing bodies of water such as seas, oceans, and riverbeds. The resulting new area is called the old land, reclaimed land, or landfill. This land can then be used for housing, agriculture, or industrial purposes.
• Metropolitan areas such as Dubai and Abu Dhabi have grown and developed exponentially despite dry climate conditions and a general shortage of arable land.
• The country has seen the execution of various land reclamation projects in the past. With the growing population and the blooming tourism, metropolitan areas such as Dubai and Abu Dhabi could see a general shortage of arable land shortly. This indicates that land reclamation projects could perhaps become a necessity in the future.
• According to a recent study published under MDPI, by 2021, Dubai and Abu Dhabi reclaimed 68 sq. km and 35 sq. km of land, respectively. Another 35 sq. km of land is yet to be reclaimed in Dubai through the construction of Palm Deira and Waterfront islands.
• Dubai has several examples of modern land reclamation projects like the Palm Islands, consisting of Palm Jumeirah, Deira, and Palm Jebel Ali. The Emirates has also hosted several new launches in 2022.
• For example, in March 2022, Bloom Holding announced the opening of a USD 9 billion gated community in the capital called Bloom Living. This includes over 4,000 Spanish-style villas, townhouses, and apartments surrounding a large lake. Meanwhile, in the same month, Q Properties unveiled the first phase of its USD 8 billion Reem Hills gated development, a villa project with man-made hills and other luxury amenities.
• Similarly, in April 2022, Aldar announced the acquisition of 6.2 million square meters of land on Saadiyat Island as part of plans to develop a Dh 15 billion (USD 4 billion) mega-complex project.
• It is important to note that a significant part of the country's development has been through reclamation and dredging. This kind of work has helped shape the island and coastal developments that play an increasingly important role in the local real estate market.
• Hence, land reclamation projects are expected to contribute strongly to the rising real estate requirement across the country, thereby strengthening the demand for silica sand in the market.

Highest Demand Anticipated from the Construction Sector

• Constructional activities and materials such as flooring, mortars, cement, roofing shingles, asphalt, and other industrial materials use silica sand to improve durability and structural integrity. Owing to its resistance to weather, wear, and corrosion, it is often used as a caulk or sealant.
• The construction sector in the United Arab Emirates has a promising outlook due to various government initiatives, such as the Projects of the 50 initiative, the Energy Strategy 2050, the Sheikh Zayed Housing Program, and the Dubai Tourism Strategy.
• For instance, through the Projects of the 50 initiative, the UAE government intends to implement a series of projects in a bid to accelerate the country's economic development to attract USD 149.8 billion in foreign direct investment (FDI) over the next nine years.
• Proposed projects like the Etihad Rail Project (USD 11 billion), the hyperloop project connecting Dubai and Abu Dhabi (USD 5.9 billion), and the Sheikh Zayed double-deck road project (USD 2.7 billion) showcase the sizeable transportation and road infrastructure projects within the government's pipeline.
• Similarly, the real estate sector too is seeing some relief post-pandemic. In 2022, Dubai's real estate sector, for example, witnessed property prices soaring as high as 56% over the last year. The country witnessed over USD 19 billion in property deals in Q3 FY 2022.
• According to DXBInteract, as of 2022, Dubai has approximately 11,562 active real estate agents and 3,074 active agencies, indicating the growing real estate sector in the emirate.
• The UAE government also announced over 33 megaprojects across the country. One such megaproject is the Dubai Urban Tech District which is proposed to be built over 140,000 square meters of built-up area and is due to start by 2024.
• As evident from the aforementioned factors, the country's construction segment is headed to recovery and shows great promise for the future. The growth of this segment is expected to potentially drive the demand for silica sand during the forecast period.

UAE Silica Sand Industry Overview

The silica sand market in the United Arab Emirates is partially consolidated in nature. Some of the key players in the market (in no particular order) include Mitsubishi Corporation, Gulf Minerals, Delmon Co. Ltd, Adwan Chemical Industries Co., National Ready Mix Concrete Co. LLC, and others.

UAE Silica Sand Market Leaders

UAE Silica Sand Market News

Recent developments pertaining to the market studied will be covered in the full report.