Expecting the present boom in construction-related activity to sustain itself over the medium term, UK headquartered ICI Paints is projecting a five-fold increase in revenues from the Middle East to 100 million by 2010.
As a rule of thumb, painting-related costs make up as much as 2 per cent of construction costs.
And with the UAE, Bahrain and Saudi Arabia embarking on multi-billion dollar construction projects, the paint manufacturers have a lot to smile about.
In the Middle East, ICI which recorded a global turnover of 2.16 billion and a trading profit of 203 million last year has been operating through exclusive licensing arrangements with partners for the individual markets.
Over the decades, ICI has built up a significant share of these markets, especially in decorative paints.
Its partners in the UAE, Saudi Arabia, Yemen, Jordan and Egypt operate factories to manufacture the Dulux range.
The UAE licence-holder Easa Saleh Al Gurg Group-owned Al Gurg Leigh's Paints operates its factory in Sharjah.
According to Tony Myers, managing director for ICI Paints' licensing and export business for Europe, the Middle East and Africa: "I do not see the need for these existing plants to go for new capacities.
"Traditionally, there are quite substantial built-in capacities at paint factories that are being utilised. ICI's emphasis from the available capacities is to use technology to provide higher quality products to the marketplace. This strategy is not about selling higher volumes, but about delivering a complete package to our consumers. This gives all of us better margins, which are then reinvested into the business.
"So, going forward, our aim along with the partners is to make the investments that have already been made on the factories to work a lot harder for us." The decorative market makes up nearly 90 per cent of ICI Paints' global turnover.
The company has 49 manufacturing bases spread over 25 countries producing 1.1 billion litres of paint annually.
The Sharjah plant takes care of the UAE market requirements, and exports to Oman and Qatar. Craig Shaw, business manager for Dulux paints, Al Gurg Leigh's Paints, said: "The last two years in particular have seen a sharp increase in demand, coinciding with the construction boom.
"We have got the capacities to deliver on any increase in demand in the medium term. Further capacities will be considered as and when required."
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