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Peikko Gulf, a prominent international supplier of building materials, has undertaken a significant expansion of its manufacturing facility in Ras Al Khaimah. This expansion, aimed at boosting manufacturing capabilities by approximately 40%, reflects Peikko Gulf’s commitment to meeting the growing market demands in the region. With the facility now spanning nearly 23,000 m2 and the addition of new machinery to its existing fleet, Peikko Gulf is poised to cater to larger projects and effectively serve its clientele across various sectors.
About Peikko Gulf
Peikko Gulf is a subsidiary of the Finland-based Peikko Group, a renowned entity established in 1965, with a global presence spanning across 33 countries. The Ras Al Khaimah manufacturing unit, established in 2010, specializes in producing precast connections and DELTABEAM® for markets in the GCC, Middle East, Africa, and India.
Growth Prospects in the UAE Construction Market
Recent analysis by Global Data indicates promising growth prospects for the UAE’s construction market. With a valuation of USD 94 billion in 2023, the market is expected to witness an annual average growth rate of over 3% from 2025 to 2028, reaching a projected value of more than USD 133 billion by 2027. This positive outlook underscores the significant opportunities for suppliers and manufacturers of building materials, such as Peikko Gulf, to capitalize on the increasing demand in the region.
Strategic Expansion in Ras Al Khaimah
The decision to expand the manufacturing facility in Ras Al Khaimah aligns with Peikko Gulf’s strategic vision and commitment to innovation. The strategic location of Ras Al Khaimah has played a pivotal role in facilitating Peikko Gulf’s success, enabling it to efficiently reach target markets across the GCC, Middle East, Africa, and beyond. By leveraging the support and cooperation of Ras Al Khaimah Economic Zone (RAKEZ), Peikko Gulf is well-positioned to sustain its growth trajectory and cater to the evolving needs of the construction industry.
CEO Perspective: Driving Innovation and Growth
Topi Paananen, CEO of Peikko Group, emphasizes the significance of the expansion as a milestone achievement driven by innovation and customer-centricity. He acknowledges Ras Al Khaimah’s strategic importance in enabling Peikko Gulf to undertake larger projects and enhance its market presence. The expansion reflects Peikko Gulf’s proactive approach in responding to industry demands and underscores its commitment to delivering cutting-edge solutions to its clientele.
RAKEZ’s Support for Business Growth
Ramy Jallad, CEO of Ras Al Khaimah Economic Zone (RAKEZ), expresses enthusiasm about Peikko Gulf’s expansion and acknowledges the advantages that Ras Al Khaimah offers to manufacturers and suppliers in the construction sector. He highlights the increasing demand for innovative building solutions amidst the region’s booming construction sector and reaffirms RAKEZ’s commitment to providing continuous support to businesses like Peikko Gulf to thrive and expand their global footprint.
Conclusion
Peikko Gulf’s expansion of its manufacturing facility in Ras Al Khaimah signifies a significant milestone in its journey towards sustained growth and market leadership. With the UAE’s construction sector poised for robust expansion, Peikko Gulf is well-positioned to capitalize on emerging opportunities and solidify its position as a preferred supplier of building materials in the region.
