Assembly of glass fiber optic cables
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1 Light Equipment, Business Services, & Other INVESTMENT OPPORTUNITY: Assembly of glass fiber optic cables
2 Executive summary There is an opportunity to establish or expand a local facility for the assembly of cables to allow for fiber optic specifications. This could be a prospect for an existing local player with assembly machinery for power cables or an international fiber optics company. Glass fiber optic cables are widely used in telecommunications and the market is currently estimated at QAR 45M/yr in different sectors. Demand is stable and is linked to Qatar s road map for a digital transformation. No local facilities currently exist for fiber optic cable assembly. The local market has experience in power cable assembly, allowing for the transfer of skills and technology. Land allocation (and potentially an empty facility) in a free zone and support for low-cost logistics, labor, and utilities could be provided. 2
3 Detailed opportunity description Assembly of glass fiber optic cables Text A fiber optic cable is a network cable that contains strands of plastic or glass fibers inside an insulated casing. Fiber optic cables are designed for high-performance data networking and telecommunications and are typically used to connect new industrial plants to the existing network. Compared to plastic, glass fiber optic cables are better Network cables and optical fibers equipped for higher bandwidth and longer distances. Localization opportunity Business scope Sourcing of the most common fiber optic cable components, e.g. Cable types (e.g., single-mode, graded multimode, step-index multimode) Jackets (e.g., PVC, PE, PUR, PBT, PA) Assembly of long-distance (glass) fiber optic cables and connections Packaging and distribution of finalized fiber optic products Out of scope Production of fiber optic cables, jackets, and raw materials Installation of fiber optic cables Capital intensity Low (QAR 0-10M) Medium (QAR 10-50M) High (QAR 50M+) 3
4 Market size Estimated opportunity for assembly of glass fiber optic cables, QAR M Historic Forecast Key highlights The total market size for glass fiber optic cables is QAR 70M/yr (2018), of which the assembly accounts for percent of the total spend (approximately QAR 45M). The market for glass fiber optic cables is directly related to the number of new installations that require telecommunications. Currently, all manufacturing and assembly of glass fiber optic cables is done internationally. Relevant stakeholders Top 3 buyers Other demand Top 2 buyers 4
5 Disclaimer The material, data, charts and pieces of information contained in this document ( Information ) is for general information purposes only and should not be construed as an investment or commercial advice or as a recommendation whatsoever. The user of the Information ( User ) is responsible for independently verifying the Information and shall make his own determination as to how suitable the Information is for his own usage and intent. User should not rely upon the Information as a basis for making any business or investment decisions. Whilst Qatar Petroleum endeavours to provide and keep the Information up to date and correct, Qatar Petroleum makes no representations or warranty of any kind, express or implied about the content, completeness, accuracy, quality, reliability or suitability with respect to the Information for any purpose. Qatar Petroleum expressly disclaims liability for errors and/or omissions in the Information contained in this document and shall in no event be liable for damages resulting from the use or reliance of User upon the Information. Any reliance the User of the Information places on such Information is strictly at User s own risk. 5
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