Due to high volatility in the crude oil market, it becomes necessary for the Gulf Cooperation Countries (GCC) to invest in diversifying their economy and reduce its dependence on oil. Also, in order to meet the demands, driven by strong population and economic growth, they will need to invest in developing the infrastructure. Both the above activities would indirectly benefit the paints and coatings market.

Middle East Paints and Coatings Markets, finds that the market earned revenues of $1.33 billion in 2007 and estimates this to reach $2.7 billion by 2014.

GCC countries need to develop hubs for other industries such as light manufacturing, financial services, and global trading to attract foreign investments. The influx of foreign investments will not only be economically rewarding but will also introduce large-scale infrastructural and industrial projects. The paints and coatings market will also reflect the effects of such moves by becoming more dynamic.

"Meanwhile, an increase in the disposable income as well as changing lifestyles has led to higher expectations from the end-users," says Frost & Sullivan's Principal Consultant Dominic Louis Britto. "This, in turn, is driving the demand for paints and coatings - especially architectural paints which account for about 64 percent of the total market revenue."

With the expansion of industries, there has been a significant rise in demand for consumer and industrial goods in the GCC countries. Many countries in GCC have also started to promote tourism, which has fostered the hospitality, infrastructure and allied industries, resulting in a rise in infrastructural projects, which in turn have increased the demand for paints. Paints and coatings are also used for wood finish, auto refinish and marine applications.

As the potential of the paint and coatings market becomes increasingly apparent, more numbers of participants have been flocking to it, making the business a high-volume, low-margin one. To top this, end users are gravitating toward low-value products due to their lack of awareness regarding the quality and usage of paints and coatings.

Manufacturers can disseminate information about the quality of paints by training the professionals to make them aware of the advantages of superior quality paints. They also need to create a powerful brand image through a conscious brand building exercise. They could also promote their products' ability to meet industry standards.

Companies also need to leverage the first-mover advantage in the GCC countries, as it will rapidly increase their market share. Companies can also stay ahead of the competition by introducing technologies that provide better results, and thereby command better prices.