Demand for machinery set to rise in Middle East

Demand will increase as the construction industry recovers.

Demand for construction machinery in the Middle East is set to rise as the construction industry recovers from the economic downturn and the region forges ahead with major development, according to the organisers of The Big 5 PMV.

Humaid Salem, General Manager of the UAE Contractor's Association, said: "As major developers start to repay contractors, they will be able to repay their sub-contractors and suppliers, giving a major boost to the industry as a whole. This will lead to more growth in the sector and create a renewed demand for construction machinery as new projects get under way."

According to industry experts, there are positive signs of recovery in the GCC construction industry and there are a number of factors that will drive ongoing demand for machinery.

According to Ventures Middle East, more than $14 billion (Dh51.42bn) worth of construction contracts were awarded in the GCC during April and May, with about $8.7bn awarded in the UAE. The firm has also forecast 10 to 15 per cent growth in contracts awarded this year.

Dr Nasser Hamad Al Hajeri, Chairman of Gulf Automobile Industry, said the scale and number of development projects, particularly in Saudi Arabia, will increase demand for construction machinery. "We are witnessing high demand in Saudi Arabia and Qatar due to the large number of major construction projects there, and demand is also growing in the UAE. To meet market demand, we are launching a light-duty truck with capacity from one to 10 tonnes and a wheel loader towards the end of the year."

With more than $1.3 trillion of projects on the horizon in the GCC, according to the latest data from Meed Projects, manufacturers and suppliers of plants, machinery and construction vehicles will exhibit at The Big 5 PMV in November, said its organisers, Streamline Marketing Group. The event will take place from November 22 to 25 in The Arena, Sheikh Saeed Halls, at the Dubai International Convention and Exhibition Centre as part of The Big 5, the Middle East's largest construction industry event, organised by dmg World Media.

Nick Webb, Director of Streamline Marketing Group, said despite a tough year for the global construction industry in 2009, the outlook for the region's construction industry is positive.

"Many major projects have been announced in 2010 to date and manufacturers and suppliers of plant, machinery, construction vehicles and equipment are actively pursuing opportunities worth millions of dollars."

Now in its fourth year, The Big 5 PMV brings together construction industry professionals, plant and mechanical engineers, consultants, architects and contractors from the Middle East, Europe, Asia and Africa.

Proleads Global, a UAE-based market research firm recently reported that nearly 1,300 projects valued at more than $418bn are under construction in the UAE, with an additional 303 projects worth $143bn in the design, planning or bidding stage.

In April, projects worth millions of dollars commenced including the Water Garden City in Bahrain ($6.6bn); Musheireb in Doha, Qatar ($430m); the Al Ain Convention Centre District ($953m), Saadiyat Island Development Cultural District – New York University ($865m) and Business Bay Development, The Opus Tower ($469m), in the UAE.

Government spending on infrastructure projects is also giving the sector a considerable boost. The UAE federal government earmarked almost $12bn from the 2010 budget for infrastructure projects, according to Business Monitor International. Saudi Arabia allocated $3.17bn in its 2010 budget for construction of 6,400km of roads.

Meanwhile, The Big 5 PMV will feature a new live demonstration area this year and the Korean Construction Equipment Manufacturers Association has recently confirmed its support for the event. The organisers are also planning a free industry conference, providing trade professionals with a platform to share best practice, learn about the latest industry developments, and discuss challenges facing the region's construction industry.

For the first time, visitors will be able to travel to The Big 5 PMV via the Dubai Metro, with the Dubai World Trade Centre Metro Station located adjacent to the venue.

 

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