Middle East gypsum board market size, share, growth drivers, trends, opportunities & forecast 2025–2030

Middle East Gypsum Board Market Overview

• The Middle East Gypsum Board Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by the booming construction sector, rapid urbanization, and a rising demand for sustainable building materials. The market has seen a significant uptick in the use of gypsum boards due to their lightweight nature, fire resistance, and ease of installation, making them a preferred choice in modern construction.
• Key players in this market includeSaudi Arabia, the United Arab Emirates, and Egypt. These countries dominate the market due to rapid infrastructure development, government investments in housing projects, and a growing population that demands residential and commercial spaces. The UAE, in particular, has seen a surge in luxury developments and hotel construction, further driving the demand for high-quality gypsum board products. Egypt’s major urban projects, such as the New Administrative Capital, and Saudi Arabia’s Vision 2030 housing initiatives are also significant contributors.
• In 2023, the Saudi Arabian government implemented theSaudi Building Code (SBC), 2023 issued by the Saudi Standards, Metrology and Quality Organization (SASO). This regulation mandates the use of environmentally friendly building materials, including gypsum boards, in new construction projects to enhance sustainability and reduce carbon footprints. The SBC sets out compliance requirements for material selection, energy efficiency, and environmental impact, encouraging manufacturers to adopt greener production methods and materials.

Middle East Gypsum Board Market Segmentation

By Type:The market is segmented into Wall Board, Ceiling Board, Pre-decorated Board, and Other Products.Wall Boardsare widely used for interior walls due to their versatility and ease of installation.Ceiling Boardsare preferred for their aesthetic appeal and acoustic properties.Pre-decorated Boardsaddress the demand for ready-to-use solutions, whileOther Productsinclude moisture-resistant and fire-rated boards for specialized applications.

By End-User:The market is categorized into Residential, Commercial, Institutional, Industrial, and Others. TheResidentialsegment leads the market due to the increasing number of housing projects and renovations, supported by government policies and urbanization. TheCommercialsegment follows, driven by growth in office spaces, hotels, and retail establishments.InstitutionalandIndustrialsegments are also significant, catering to schools, hospitals, and factories, with demand for specialized gypsum board solutions for fire safety and moisture resistance.

Middle East Gypsum Board Market Competitive Landscape

The Middle East Gypsum Board Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saint-Gobain Gyproc Middle East, Knauf Gips KG, Mada Gypsum Company, USG Boral Middle East, Gypsemna Co. LLC, National Gypsum Company (Saudi Arabia), LafargeHolcim (Lafarge Gypsum), Etex Group (Siniat), Al Ahli Gypsum, Oman Gypsum Industries, BNBM Group (Beijing New Building Material), G Board (Gulf Gypsum Board Co. Ltd.), El-Khayyat Gypsum Company, United Mining Industries, and Qatar Gypsum Board Factory contribute to innovation, geographic expansion, and service delivery in this space.

Middle East Gypsum Board Market Industry Analysis

Growth Drivers

• Increasing Construction Activities:The Middle East is witnessing a construction boom, with the region's construction output projected to reach $200 billion in future, driven by mega-projects like NEOM in Saudi Arabia. This surge in construction activities is fueled by urbanization and population growth, with the UAE alone expecting a population increase of 2.5 million in future. Consequently, the demand for gypsum boards, essential for interior finishing, is expected to rise significantly, supporting market growth.
• Rising Demand for Sustainable Building Materials:As sustainability becomes a priority, the Middle East is seeing a shift towards eco-friendly building materials. The region's green building market is projected to grow to $78 billion in future, with gypsum boards being favored for their recyclability and low environmental impact. This trend is further supported by the UAE's commitment to the Paris Agreement, which aims to reduce carbon emissions, thus driving the demand for sustainable construction materials like gypsum boards.
• Government Initiatives for Infrastructure Development:Governments across the Middle East are investing heavily in infrastructure, with a combined expenditure of over $300 billion planned in future. Initiatives such as Saudi Arabia's Vision 2030 and the UAE's National Agenda are aimed at enhancing urban infrastructure, which includes residential and commercial buildings. This investment is expected to boost the demand for gypsum boards, as they are integral to modern construction practices, thereby propelling market growth.

Market Challenges

• Fluctuating Raw Material Prices:The gypsum board industry faces challenges due to the volatility of raw material prices, particularly gypsum and additives. In future, the price of gypsum fluctuated between $30 to $50 per ton, influenced by global supply chain issues and demand-supply imbalances. Such fluctuations can impact production costs and profit margins for manufacturers, posing a significant challenge to maintaining competitive pricing in the market.
• Competition from Alternative Materials:The gypsum board market is increasingly challenged by alternative materials such as cement boards and fiber-reinforced panels. In future, the market share of alternative materials grew by 15%, driven by their perceived durability and moisture resistance. This competition can hinder the growth of gypsum boards, as construction firms may opt for these alternatives, impacting overall market dynamics and profitability for gypsum board manufacturers.

Middle East Gypsum Board Market Future Outlook

The future of the Middle East gypsum board market appears promising, driven by ongoing urbanization and a strong focus on sustainable construction practices. As governments continue to invest in infrastructure, the demand for lightweight and eco-friendly materials is expected to rise. Additionally, advancements in production technologies will likely enhance efficiency and reduce costs, further supporting market growth. The integration of digital technologies in construction processes will also play a crucial role in shaping the industry's future landscape.

Market Opportunities

• Expansion into Emerging Markets:There is significant potential for gypsum board manufacturers to expand into emerging markets within the Middle East, such as Iraq and Yemen, where reconstruction efforts are underway. With an estimated $50 billion needed for infrastructure development in these regions, companies can capitalize on the growing demand for building materials, including gypsum boards, to support new construction projects.
• Technological Advancements in Production:The adoption of advanced manufacturing technologies, such as automation and AI, presents a substantial opportunity for the gypsum board market. By investing in these technologies, manufacturers can improve production efficiency and reduce waste, potentially increasing profit margins. This shift towards more efficient production methods aligns with the growing demand for high-quality, sustainable building materials in the region.