Middle East home market emerging ceramic exports "treasure"

In recent years, European and American countries have conducted "anti-dumping" investigations on China's export ceramic products, and the number of Chinese ceramic exports has continuously declined. In particular, the recent EU “anti-dumping” investigation on China’s ceramics for daily use has forced more companies to look into other potential markets. With the growing economic development in the Middle East, Africa, South America and other regions, the demand for ceramic products has gradually increased, becoming a hot spot for the global ceramic industry. Especially in the Middle East, it has become the preferred battlefield for Chinese ceramic companies.

The Emerging Export Emergencies With Potential of Great Importance The Middle East region mainly refers to 24 countries and regions in West Asia and North Africa, including UAE, Saudi Arabia, Qatar, Libya, Bahrain, Egypt, Iran, Iraq, and Algeria, covering an area of ​​more than 15 million square kilometers. The total number is about 360 million.

The Middle East is in contact with Asia, Europe and Africa on three continents. It communicates with the hub of the Atlantic Ocean and the Indian Ocean. The geographical location is very advantageous and the transportation is convenient. Historically, the Middle East has played an important role in the exchanges between China and European countries. The famous Silk Road in ancient China began with Chang'an (present-day Xi'an), passed through Gansu and Xinjiang, and reached Central Asia and West Asia (now the Middle East region), becoming the commercial and trade avenue for the exchange of ancient Asia and Europe. China's silk, porcelain, tea and other commodities are continuously transported to Central Asia and Europe; European wines, rare animals and birds, plants, skin goods, medicinal herbs, spices, jewelry, etc. are also shipped to China through the Middle East and the Silk Road. .

The oil resources in the Middle East are very rich. At the same time, they are full of deserts. There is a serious lack of fresh water, food and other resources, and a typical single economy has emerged. As a result, while continuously sending oil to the rest of the world for huge economic benefits, other resources around the world are also flowing into the Middle East. Take Dubai as an example. Almost all daily commodities cannot be produced locally. Products such as electronics, clothing, and building materials are heavily dependent on imports.

In recent years, the construction industry in the Middle East has developed rapidly. Among them, Saudi Arabia will invest more than 1.102 trillion U.S. dollars for the construction of 1026 projects this year; UAE’s total construction projects will be about 1,249 billion U.S. dollars, of which the largest share of building construction will be 871.6 billion U.S. dollars. In recent years, Qatar, the world’s fastest growing GDP, has successfully planned to host the 2022 World Cup. In the next four years, Qatar has planned development projects worth US$100 billion, including stadiums, energy facilities, and hotel buildings. The demand for building materials including building ceramics is very large. In addition, some developing countries located in the Middle East have seen an ever-growing economy and the construction industry has become one of the pillars of economic development. Therefore, the demand for building ceramics in the Middle East is not only huge, but also has unlimited development potential. The "cake" in the Middle East appears to be very attractive compared to the weak state of the developed countries in Europe and the United States.

In addition to strong internal demand, the impact of the Middle East on the surrounding markets is also enormous. The superiority of the geographical location has enabled the Middle East to become a trading hub and re-export center. The neighboring countries of Asia, Europe and Africa are all within the radius of radiation. Dubai, in particular, serves as the hub of transportation and the largest trade and distribution center in the Middle East. More than 80% of goods to and from the Middle East need to be relayed here. Through Dubai, goods can be resold to the Gulf region, Eastern Europe, Africa, and South Asia, with a population of 1.3 billion people.

Lower thresholds for favorable policy policies In addition to the aforementioned advantages, liberal and liberal economic policies in the Middle East are also important factors in attracting domestic ceramic enterprises. For example, in the United Arab Emirates, except for 5% of import duties, there are basically no other taxes, and even business tax, consumption tax, and income tax are not paid. At the same time, the United Arab Emirates has no control over **, and the import and export of ** are completely free, without the need for approval by any administrative agency. Entry and exit of persons carrying in or out of the country does not require declaration.

More notably, it is expected that Dubai International Finance Center (DIFC) will allow transactions with *** this year. This is an important achievement of *** internationalization, which will allow all foreign trade companies, including the ceramic industry, to gain convenience and benefits.

Overall, the Middle East has a stable socio-political environment, high degree of economic freedom, and hidden business costs and hidden business risks. At the same time, the hardware and software construction of the city’s basic facilities is highly modern and the business environment is excellent. This not only ensures that the local economy can flourish over a long period of time, but also provides protection for foreign companies that have entered. As long as Chinese ceramic export enterprises can enter smoothly, they can basically guarantee that they will not have any worries.

All in all, regardless of geographical location, traffic conditions, market size and local policies, the Middle East is one of the first choices for the Chinese ceramics industry to expand overseas emerging markets.

To win the Middle East market, it is necessary to establish a brand. At present, the Middle East’s ceramic products are mainly imported. Low-to-medium-priced products are imported from China. Chinese ceramic products including antique tiles, polished tiles and tiles can be used by local customers. accept. Chinese ceramic products have occupied a considerable market share in the Middle East. For example, in the United Arab Emirates, ceramic tiles from Italy, Spain, Turkey, and Egypt in addition to local ceramic products are also influx, but the largest number of Chinese ceramic tiles are also counted. In addition, many Chinese ceramic companies have also been operating in the Middle East for many years, laying a solid foundation for the market. For example, Eastman International Building Materials Group Corporation, which has operated in Dubai for more than ten years, is a representative. The company cooperated with a number of well-known Chinese ceramic brands to build a brand-named senior hardcover simulation hall and established Chinese brand names in three locations: Sharjah Building Materials Street in Dubai, Dubai International Ceramics City (ICC) and Dubai Dragon City (Phase II). Tile Center flagship store, with a total area of ​​over 10,000 square meters, showcases China's high-end, high-quality ceramic tiles in the UAE, allowing local consumers to most intuitively understand the brand outlook of Chinese ceramic products.

However, at present, the influence of Chinese ceramic brands in the Middle East is very small, and many brands with great influence and industry status in the country are not even known in the Middle East. As more and more Chinese ceramic companies shift their export focus to the Middle East, brand building and promotion will become increasingly important. Under current circumstances, if Chinese ceramic products are to enter the Middle East market in a large scale, not only must they obtain the cooperation of large local distributors, but they should also establish the Chinese brand so that they can be recognized and accepted in the Middle East market and gradually Improve their own grades and prices, laying the foundation for future long-term development.