Diversifying into Geosynthetics for a Saudi Arabia-Based Conglomerate

Client Profile: Our client, a leading conglomerate based in Saudi Arabia, sought to diversify its business portfolio by entering the geosynthetics market. Geosynthetics are synthetic products used to stabilize terrain and are crucial in various infrastructure projects, including roads, railways, and environmental protection.

Objective: Infinium Global Research LLP was engaged to provide customized research solutions addressing the following key areas:

1. Demand or applications of geosynthetics in the Middle East and Saudi Arabia.
2. Supply-demand gap analysis.
3. Leading manufacturers and a list of distributors in the Middle East and Saudi Arabia.
4. Average price points.
5. Leading countries exporting geosynthetics products and the volume supplied by given HS codes.
6. Competitive scenario in the Middle East and Saudi Arabia.

Research Methodology: To meet the client's requirements, we employed a comprehensive research methodology that included:

• Secondary research through industry reports, market databases, and official trade statistics.
• Primary research involving interviews with industry experts, key stakeholders, and potential customers.
• Analysis of trade data using Harmonized System (HS) codes specific to geosynthetics.
• Competitive landscape assessment through SWOT analysis and market positioning strategies.

Findings and Solutions:

1. Demand and Applications of Geosynthetics:
   • Saudi Arabia: The demand for geosynthetics in Saudi Arabia is driven by large-scale infrastructure projects, including Vision 2030 initiatives such as NEOM city, Red Sea Project, and various road and rail projects.
   • Middle East: The broader Middle East region also shows significant demand due to infrastructural development, urbanization, and environmental conservation projects.
   • Applications: Key applications include road construction, erosion control, waste management, and water management systems.
2. Supply-Demand Gap Analysis:
   • Supply: The current supply of geosynthetics in the region is met through both domestic production and imports.
   • Demand: Demand outstrips supply, creating a substantial market opportunity for new entrants. Factors such as governmental policies promoting sustainable infrastructure further boost demand.
   • Gap: Identified a supply-demand gap, indicating a potential market for the client to enter with competitive pricing and high-quality products.
3. Leading Manufacturers and Distributors:
   • Manufacturers: Provided the profiles of the leading manufacturers of the geosynthetic products in the Middle east and Saudi Arabia.
   • Distributors: Key distributors in Saudi Arabia and the Middle East included in the final deliverable.
4. Average Price Points:
   • Pricing Analysis: Conducted an in-depth analysis of average price points across different types of geosynthetics (e.g., geotextiles, geomembranes, geogrids).
   • Price Range: Identified that the average price point varies based on the type and application, with geotextiles in per square meters.
5. Leading Countries Exporting Geosynthetics Products:
   • Export Analysis: Analyzed trade data to identify leading exporting countries, including the USA, China, Germany, and India.
   • Volume Supplied: Evaluated the volume supplied by these countries using HS codes specific to geosynthetics (e.g., HS Code 560394, 591190).
   • Trade Dynamics: Identified trends and trade dynamics that could affect the client's sourcing strategy.
6. Competitive Scenario:
   • Market Players: Conducted a competitive analysis identifying key players, market shares, and their strategic positioning.
   • SWOT Analysis: Provided a detailed SWOT analysis for the client, highlighting strengths, weaknesses, opportunities, and threats in the Middle East and Saudi Arabian markets.
   • Entry Strategy: Recommended entry strategies, including potential partnerships, local manufacturing, and leveraging government incentives.