World Expo, World Cup Puts Shine on GCC Steel Fabricators

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The build-up of activity in the United Arab Emirates (UAE) and in Qatar surrounding the 2020 World Expo and the 2022 FIFA Soccer World Cup, respectively, is putting a shine on the prospect for the steel fabrication industry in the Gulf Cooperation Council (GCC) states.

The demand for machinery, metals and steel products is on the rise. The industry is gearing up for head-to-head competition, with global peers and massive spending on infrastructure projects, and positive sentiments fuelling growth in the core industrial sectors.

Positive sentiments boosted to the UAE economy in general--and luxury, retail and hospitality, in particular--in 2013. The region recorded more than 500 new projects last year. This is the largest number of new projects created in any year since 2008. The UAE's project market could return to above the $40 billion level in the next two to three years, according to the Middle East Economic Digest (MEED).

"While Dubai is set to spend over $18 billion for the World Expo, Qatar has earmarked a staggering $200 billion for the World Cup," said Sharjah Saif Mohammed Al Midfa, chief executive officer of Expo Center. "The construction sector, the main demand driver for fabricators, will be on an overdrive to complete all the required projects before the cities get ready to host the events."

"There is a high expectation for the growing steel fabrication industry in the UAE and the region, given the head-to-head competition with the West," said Essa Zaid, a mechanical engineer with Simco Industry and Machinery (Sharjah). "Following recovery in the construction industry and huge infrastructure spending, fabricators see a bright outlook for the sector."

Speaking during the recent 10th SteelFab exhibition, Zaid said: "About 35% of the products we got to the show are off the shelves. We are expecting to sell more than 50% of the products we are displaying at the exhibition.

"We are one of the major competitors in the MENA (Middle East-North Africa) region and one of the biggest in the UAE. We are planning to go forward and expand to the global market."

For related information, see September 4, 2013, article - Emirates Steel's High End Product Break into American and European Markets.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.