Dubai Danube, the UAE’s biggest building materials supplier, has expanded in the emerging markets of Africa with a footprint in Libya and Kenya – that will help the Dubai-based company tap greater opportunities in these markets while offering consumers and businesses in these feeder markets a slice of Dubai’s successes.
As the African market is set for a rebound following the Arab Spring, the construction industry is gaining momentum across the region with the demand for building materials being given a much-needed lift to Africa’s materials manufacturing sector.
Global construction will grow by 67 percent from $7.2 trillion (Dh26.4 trillion) to $12 trillion annually by 2020. Of this, the Middle East and African regions are expected to outpace the global growth rate, according to a new report sponsored by PwC and carried out by Global Construction Perspectives and Oxford Economics which the new leadership of the African continent are determined to benefit from.
Libya has huge potential to become a role model for other Arab nations considering the steady recovery it experienced following the Arab Spring. As it is recovering, Libya is experiencing a surge in demand across all economic sectors providing golden opportunities for investors. Additionally, a report from Kenya National Bureau of Statistics (KNBS) stated that, the economy of Kenya grew by 4.9 percent in the first quarter of 2011 due to the improved productivity in the construction industry.
Keeping pace with that, the new showroom in Kenya is situated in Nairobi, spreading across 20,000 square feet.
Similarly, the franchise outlet of Danube in Libya is located in Benghazi and is spread across 35,000 square feet. Both the showrooms showcase an extensive collection of products including sanitary ware, ceramic tiles, parquet, flooring, chandeliers, garden furniture, timber, steel and other hardware. Danube also foresees expansion in other areas of Africa such as Ethiopia and Tunisia.
“Danube’s commitment to the construction and building materials market is underlined by our expansion, which is aimed at addressing the needs of the customers across the region,” said Rizwan Sajan, founder and chairman of Danube Group.
“With several construction projects currently under way and planned projects, there was an obvious demand for building materials in Africa which has helped us expand and consolidate our market presence in the region.”
With the twin initiatives, Danube is the first company in the UAE to extend its base to the Libyan market following the Arab Spring. The company has committed substantial investment and resources to expand in both these African markets and will play a catalyst’s role in feeding a wide market with the increase in demand.
Analysts predict that in both the emerging markets, Danube will have an early mover advantage as reconstruction of Libya, Tunisia and Egypt is creating a huge demand for both building materials and interiors products.
