GCC's construction awarded projects jumped to US$1.35 trillion by end of 2013

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7 Jan 2015

Al Fajer Information and Services, one of the oldest exhibition organisers in Dubai, Messe Düsseldorf and Messe Essen, the leading international German exhibition organizers, are all set to host three companion shows -- the inaugural Metal Middle East, the 5th Tube Arabia show, and the 2nd Arabia Essen Welding & Cutting exhibition, at Dubai International Convention and Exhibition Centre (DICEC), from January 10 to 13, 2015.

Announcing the trio of exhibitions at a press conference in Dubai, the organisers gave a comprehensive overview of the Gulf metal, tubes and welding industries, highlighting key strengths as well as challenges both locally and regionally.

The press conference was addressed by Satish Khanna, General Manager, Al Fajer Information and Services, Daniel Ryfisch, Project Manager, Messe Düsseldorf and Julia Wermter, Project Manager, Messe Essen.

The debut edition of Metal Middle East, the only specialized event of its kind in the Middle East, will serve as a platform for companies to tap the Middle East market. The exhibition will see participation of a wide range of companies from many countries.

Khanna said that the three industrial exhibitions will be spread over an area of 5000 sqm in (DICEC).

He added: “Consumption of steel in the GCC has been underpinned by significant investments in the construction sectors of the UAE, Saudi Arabia and Qatar. Estimates show that GCC’s awarded projects jumped to US$1.35 trillion by end of 2013.”

Daniel Ryfisch, Project Manager, Messe Düsseldorf said: "The UAE is regarded as the most important trade hub between Europe, Asia and Africa. It is a highly attractive market for companies and investors. Major efforts undertaken by the Gulf region at improving the transport infrastructure will lead to further growth in the steel industry. The expansion of the metro networks and road building projects costing several billion US dollars, including numerous bridge construction projects along with the development of port and airport capacity, are just some of the projects already launched. Against the background of the Dubai EXPO 2020, the projects in the areas of local transport and air traffic are assuming added significance.”

Metal Middle East has enjoys support from VDMA- German Engineering Federation, CECOF- European Committee of Industrial Furnace and Heating Equipment Associations, CEMAFON- The European Foundry Equipment Suppliers Association and EUnited Metallurgy - The association for Metallurgical Industry in Europe

“The demand for steel is growing by 5% – 6% annually. Middle East countries including the UAE have the world’s largest oil and natural gas reserves and are among the richest countries in the world. The stable oil and gas industry is fuelling the growth in the pipe and tube industry. The demand for steel pipelines will increase in the next five years by an estimated 5.3 million tons with an equivalent value of US$ 7.2 billion,” he added.

Supported by International Tube Association, the international trade fair for the tube and pipe industries ‘Tube Arabia 2015’ will see participation of 64 companies from 17 countries. Ryfisch said that robust oil and gas industry is driving the tube and pipe sector to new heights. “The regional pipe industry has been riding a steep demand curve backed by huge planned outlays on oil and gas infrastructure by most regional governments.”

Ryfisch also said that “The role of Tube Arabia is to serve as a platform to facilitating deals between decision makers and manufacturers, ensuring that best services are put in place for this industry.”

The oil business, tourism, trade and services are the most profitable sectors in the economy. The development of the industrial sectors, high-tech and tourism is providing even more support for the growing infrastructure. The continuing construction boom, major investments in the real estate sector and the rising per-capita income have led to a dramatic increase in demand for steel and pipe and tube products. According to current estimates, the consumption of finished steel products has reached 8,000.000 tons by the end of 2014.

The 2nd international trade fair joining, cutting, and surfacing sectors -- ‘Arabia Essen Welding & Cutting 2015’ has attracted 52 companies from 10 counties.

Julia Wermter, Project Manager, Messe Essen said “There are diverse fields of application for joining, cutting and surfacing technology, including the numerous large construction projects, investments in infrastructure, airport expansion and permanently present work in the area of pipeline and apparatus construction. We greatly value the support of DVS (German Welding Society)”

Moreover, the steel and aluminium industries, aviation and renewable energies also open up market opportunities for the joining sector. Khanna said: “Arabia Essen Welding & Cutting is the only event of its kind in the entire Middle East, ideally complementing Tube Arabia.”

Wermter concluded: “GCC is on track to become global powerhouse in manufacturing. The future of the manufacturing sector looks very promising.”

Ajmal Steel Tubes & Pipes says that the capacity of UAE tube production is close to 500,000 Metric Tonnes per annum. “Over the years, the industry has seen significant growth. Now with Expo 2020 on the horizon as well as the increase in the scaffolding sector in and around the UAE has further strengthened the industry. Currently 350,000 Metric Tonnes would be produced by the mills in UAE in terms of ERW pipes during the first three quarters of 2014”, said M.S. Ameed, Managing Director – Ajmal steel Tubes and Pipes and Industries.

The UAE tube industry is on a growth path but not without its fluctuations, which are linked to the global steel markets demand and supply chain. The UAE is not only exporting but re-exporting tubes and pipes products to destinations like GCC countries, USA, European countries and Australia.

According to a Frost & Sullivan report, the UAE iron tube and pipes imports reached almost 450 Metric Tonnes in 2011. The report said that GCC has been importing substantial quantities of tubes and pipes of cast iron (particularly ductile iron) required mainly for water sector.

The GCC has been importing large quantities of seamless steel tubes and pipes, required for oil and gas, and other industrial sectors such as power, water, chemicals and petrochemicals. Considering good demand for these products in the region, UAE has seamless steel tubes manufacturing facilities.