MENA Green building materials Market: Current Analysis and Forecast (2023-2030)

Green building materials are materials that are environmentally responsible and resource-efficient throughout a building's life-cycle, from planning to design, construction, operation, maintenance, renovation, and demolition. They are composed of renewable resources rather than non-renewable resources and have a low impact on the environment. Moreover, green materials are durable, reusable or recyclable, include recyclable materials in their composition, and have to be from resources of the area where the building activity will take place.

The MENA Green building materials Market is expected to grow at a strong CAGR of 10.26% during the forecast period (2023-2030). The rising government's carbon-reducing goals and massive abundance of green building materials resources in the MENA region are driving the growth of green building materials. In the UAE, in May, the cabinet approved a total of 78 environmental initiatives in preparation for hosting COP28. In July, Abu Dhabi Global Market (ADGM) announced the implementation of its sustainable finance regulatory framework with immediate effect. The growing energy demands through sustainable sources and green building materials projects offer job opportunities and stimulate economic growth.

Based on the application, the market is segmented into framing, insulation, roofing, exterior siding, interior finishing, and others. The insulation category expected to grow with a higher CAGR during the forecast period. This is mainly due to the rising awareness of energy efficiency along with government incentives for green construction has driven the demand for sustainable insulation materials in the MENA construction industry.

By end-use, the green building material market has been classified into residential, commercial, institutional, industrial, healthcare, and others. The residential category held a significant share of the market. The residential segment has been a driving force behind the adoption of green building materials in the MENA region. The growing population, urbanization, and an increasing middle class have led to a surge in housing construction. The MENA region's residential sector's demand for green materials is fueled by the desire for sustainable, cost-effective homes that offer a healthier living environment.

For a better understanding of the market adoption of the green building materials industry, the MENA market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Egypt, Kuwait, and the Rest of MENA. The United Arab Emirates (UAE) is expected to grow with a significant CAGR during the forecast period. This growth can be attributed to the UAE government has been actively promoting sustainable construction practices through various initiatives and regulations. This includes mandatory green building certifications and incentives for eco-friendly construction. Additionally, the increasing awareness among developers and consumers about the benefits of green building materials, such as energy efficiency and reduced environmental impact has driven demand of green building materials. The growth of the green building materials sector in the UAE is propelled by the government has implemented ambitious targets, such as the UAE Energy Strategy 2050. The strategy aims to increase the contribution of clean energy in the total energy mix from 25 percent to 50 per cent by 2050, reduce carbon footprint of power generation by 70 percent, thus saving AED 700 billion by 2050, and It also seeks to increase consumption efficiency of individuals and corporates by 40 per cent.

Some of the major players operating in the market include: Saint-Gobain, LAFARGE, RAK CERAMICS, Kingspan Group, ALICO, Arabian Tile Company Ltd. - ARTIC, SABIC, Gulf Extrusions, Sika GCC, Owens Corning.