In its maiden release of a 24-part research series, Qatar Development Bank (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 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 labor force involved in the glass manufacturing sector in Qatar as well as new statistics about the rates of growth and decline in sectoral demand.
Speaking at the launch of the report, Chief Executive Officer (CEO), Qatar Development Bank (QDB) Abdulaziz bin Nasser Al-Khalifa said: "At Qatar Development Bank, 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. And herein lies the importance of the primary field research that QDB undertook to gage a deeper, more insightful understanding of the local industrial sectors—we studied their capacity and capabilities in close detail and analyzed how they were impacted by new production trends, development in modern technology, competition by local and global products, and the larger economic climate. We are confident that our series of upcoming research findings and reports will become the reference handbooks of choice for local entrepreneurs across all sectors.”
He added: "Our ’Manufacture of Glass and Glass Products’ 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. We hope that this report will contribute to raising awareness on the quality of production in this sector and subsequently have a positive impact on production demands and sales.”
Studies showed that the glass and glass products sector comprises a range of diverse products that can be categorized under the following segments: flat glass, processed flat glass, fiber glass, container glass, domestic glass, and special glass products. Most of these are intermediate products that are used as inputs in the manufacture of other products. Construction and the automotive sectors are the biggest drivers of glass and glass products globally.
The report concluded that the market size for glass and glass products in Qatar was estimated to be QAR 711 million in 2015. Flat glass and its downstream products, which are primarily used in the construction sector, accounted for approximately 50% of the total market size for glass products. Following 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% of the market size.
The results 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 QAR 72 million in 2015, up significantly from QAR 7 million in 2006. These companies collectively employed 859 full-time employees in 2014.
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 QAR 23 million in 2009 to QAR 72 million in 2014. This growth rate of 26% 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. With the local producers establishing their market positions, imports have been restricted to products with non-standard dimensions as well as high value-added products, such as bulletproof, fire-rated and low-emissivity (low-E) glass.
Qatar is currently dependent on imports for both raw materials and finished products across most segments of the glass and glass products sector, with the flat glass processing segment being the only exception. The report segmented local companies into the following two categories: processors and glass & aluminum fabricators. The first category of companies, ‘processors’, only process glass and then supply it to aluminum fabrication companies for further processing and installation. The second category of companies, ‘glass and aluminum fabricators’, are involved in both the processing of glass and aluminum and their installation. The report also showed that the technical capabilities of the companies operating in the flat glass processing sector in Qatar have improved substantially in recent years and the leading domestic players are capable of undertaking the most complex processes.
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. Similarly, there was a projected increase on the domestic demand for processed flat glass, from approximately 41,100 tons in 2015 to approximately 45,200 tons in 2026. On the other hand, the report revealed that there was a drop in demand for glass fiber, from approximately 67,000 tons in 2008 to approximately 26,000 tons in 2015, attributing the decline to the postponement and cancellation of major projects.
The analysis concluded that a typical flat glass production facility needs to produce and sell in excess of 150,000 tons of flat glass per annum, while exporting more than 75% of its annual output in order to be financially viable.
A summary of the report and its contents is available on the official website of QDB (www.qdb.qa). Furthermore, parties interested in access to the complete report may contact the hotline at 44300000.
To promote the private sector, QDB locally extends wide-ranging financial and non-financial support to entrepreneurs across a myriad of industries—the development organization runs a series of initiatives that promote the entrepreneurial spirit in the citizenry to create private startups on an ongoing basis. Eco-friendly Jahiz I and Jahiz II initiatives seek to empower already-existing local SMEs that are operating across a diverse range of industries, including: chemicals, electronics, plastics, wood materials as well as food and beverage. Notably, through Tasdeer, QDB’s export program, the development agency aims to strengthen the presence of Qatari companies on prestigious global platforms, linking Qatari specialists to international experts across the world’s production industries at matchmaking events and exhibitions.
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