Integer Research Ltd (Integer) - Arab Spring Impact Fails to Derail Growth in MENA Wire and Cable Markets.
The Middle East and North Africa (MENA) wire and cable market steadily recovered to reach US$15.4 billion in 2012, up by 5.4% from 2011. This is according to Integer's latest study - Wire & Cable Focus Report: Middle East and North Africa Markets, which forecasts potential demand for MENA wire and cable to 2017.
"The short term effects of the Arab Spring, including project cancellations and delays, have been disruptive," says Andrea Valentini, Senior Analyst and Editor of Wire & Cable Focus Report: Middle East and North Africa Markets. "However, the rebuilding and opening up of some North African markets post-Arab Spring, plus increased investment in infrastructure by GCC governments seeking to maintain political stability, should allow further gains in MENA demand."
The market for insulated wire and cable in the MENA region has experienced highs and lows in recent years. The rally in oil prices from the mid-2000s to 2008 fuelled a boom in demand for cable from construction and infrastructure developments in the GCC, resulting in many companies adding cable making capacity. Meanwhile, European OEMs actively invested in North Africa's wiring harness assembly industry, boosting local wire and cable consumption.
Since the boom, the MENA cable industry has faced upheavals from both the Arab Spring and global financial crisis, resulting in new capacity coinciding with a sharp drop in demand for cable. In 2009, consumption contracted by 28% year-on-year to US$8.4 billion.
Within MENA, the North Africa and GCC cable markets are distinct, even though they share a common Arab heritage. "GCC cable consumption is much larger than North Africa's, and is dominated by power cable and building wire. In 2012, the GCC market reached almost 1.2 million gross cable tonnes, compared with 520,000 tonnes in North Africa," says Josie Armstrong, Business Manager of the Wire and Cable Team. "In contrast, a key determinant of North African cable consumption is the outsourcing of wiring harness assembly from European automotive and other OEM supply chains."
About Integer Research
Integer Research is a specialist provider of research, data, analysis and consultancy services across a range of global industrial markets, including wire and cable, fertilizers and emissions.
For more information on this new report and its findings please contact Ali Asaadi on +44-20-7503-1265 or email@example.com
SOURCE Integer Research Ltd
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 16, 2013|
|Previous Article:||Halcyon Software Announces Advanced Job Scheduler v11 for IBM i to Improve Business Continuity.|
|Next Article:||Contracts to Purchase Off-plan and Volatile Economies can be a Hazardous Combination Says Dewar Hogan.|