This opportunity entails developing the value chain for the production of metallic and non-metallic conduits and fittings in KSA to serve both the country and the wider GCC region.
The overall demand for conduits and fittings in Saudi Arabia has been growing, estimated at USD 98 million in 2017 and forecasted to increase at an annual growth rate of 2% to reach USD 110 million by 2022.
Beyond the KSA market, investors in Saudi have the opportunity to tap into the large regional market in the GCC with expected increase in demand from USD 82 million in 2017 to USD 92 million by 2022. The KSA market demand is expected to be ~55% of the overall GCC demand for conduits and fittings.
The main focus of this opportunity is to develop manufacturing facilities for terminal boxes, fans, stators, bearings and rotors and final manufacturing and factory testing of motors.
However, there are additional opportunities across the conduits and fittings manufacturing value chain. These additional opportunities include:
- Raw materials: partner wit supplier to localize production of steel, aluminum, and other metals, leveraging access to local raw materials such as polyvinylchloride
- Sales and after-sales: establish facilities to install and test inverters