Business | Construction
Construction sector will provide UAE economy much needed fillip
The massive construction sector in the UAE is providing healthy business to international manufacturers and suppliers despite the worldwide credit crunch.
- By Suzanne Fenton, Staff Reporter
- Published: 23:15 November 19, 2008
- Construction continues on Dubai's Shaikh Zayed Road. Even though the country is affected by the global slowdown, experts feel that the Arabian Gulf is one of the few places where growth is expected to continue with governments supporting major infrastructure projects.
- Image Credit: Supplied picture
Dubai: The massive construction sector in the UAE is providing healthy business to international manufacturers and suppliers despite the worldwide credit crunch.
With more than 3,000 exhibitors from 53 countries due to participate in next week's Big 5 event, and more than 55,000 visitors expected, the construction industry is still robust.
"It would be foolish to suggest that the global fin-ancial situation will not impact the region and no doubt some projects will be scaled back.
"But the fact remains that the Arabian Gulf is one of the few places in the world where growth is expected to continue with governments supporting major infrastructure projects," Bernard Walsh, managing director of organisers dmg world media, said.
No surprise
The UAE recently predicted six per cent growth for next year, so it comes as "no surprise that the world wants to come here and do business," added Walsh.
According to figures so far, the PMV (plant, machinery and vehicles) area specifically has grown 70 per cent since last year's event, with 380 manufacturers and suppliers participating.
Around 85 per cent of these are international companies, and the US is exhibiting for the first time as part of efforts to get its economy back on track.
Figures show that 4,510 projects are currently underway across the Middle East and North Africa (Mena) region, with a combined value of $4.4 trillion, according to database, Proleads.
With such a staggering amount of money involved, the industry needs manufacturers and suppliers increasingly.
Germany and Italy are the biggest exhibitors in terms of space and the number of companies respectively.
With around 380 German exhibitors, Oliver Parche, deputy delegate of German industry and commerce in the UAE, said that the number "reflects how we think and where the market is". The Italian companies agreed, saying they too are aiming at this region.
German exports to the UAE hit 5.8 billion euros in 2007, up from 5.4 billion euros in 2006.
While this figure is expected to rise further, it may do so at a slower rate.
"I'm not sure it will reach a 20 per cent increase like last year, but it will be over 10 per cent," Parche said.
Free park and ride plan
Don't panic! The potential headache caused by traffic jams at other such events, as visitors try to squeeze through the clogged artery of Shaikh Zayed Road, will hopefully be relieved at this year's Big 5.
Aside from the parking facilities at the Dubai World Trade Centre and the usual shuttles between certain hotels and Mall of the Emirates, Festival City and Dubai Mall, organisers have arranged a further 3,000 parking spaces through a park and ride scheme.
The car parks at Wonderland in Garhoud (700 spaces), Al Wasl club (1,200 spaces) and the car park behind the Fairmont, have all been made available to visitors of the Big 5. Car parking and the shuttle to the event is all free.
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