As summer arrives, the UAE moves indoors with cooler options for health and environment.
With the rapid increase in the number of residential and commercial projects in the UAE, people of this region have become more involved in their choice of air-conditioning units.
The UAE combines three distinct characteristics that make it a key market for air-conditioning equipment: high per capita income; extremely hot and humid climate (which makes air-conditioning a necessity, rather than luxury); and relatively low electricity cost.
Combined with this the boom in construction activities and high population growth generate a high demand for air-conditioning systems in the country. Until the early 1960s the UAE used wind towers (a traditional form of ventilation) since air conditioning equipment was still to enter the market.
Cooling equipment
In the 1970s and 1980s these wind towers were replaced by standard window or wall mounted air conditioners, which became the most popular form of cooling equipment in the UAE.
In the domestic sector, the most prevalent trend today is the split air-conditioner. The split offers several features such as quiet operating system, high cooling capacity, long life and energy efficiency. Japan has continually led in this sector in the UAE, with a market share of 35 per cent. The US is the second largest supplier with a market share of 30 per cent. In addition to the real estate growth, there are two other trends that are gaining ground in the region. There is a growing demand for close controlled units (air-conditioning units required for electronic telephone exchange computer rooms and pharmaceutical industries).
The other area in which air-conditioning units are needed is the absorption chillers, seen as one of the most promising growth segments because of the expected availability of gas as a fuel in the future.
Residential market
Imad Richani, Business Unit Manager for Commercial Systems, UTS Carriers, says, "In the residential market, the trend is shifting to more advanced units in each segment. From mini split units or duct-free systems, the demand is now shifting to ducted or packaged systems, commonly known as central air conditioning. In the commercial market, the trend is in favour of chilled water systems, which offer a high start-up cost but are more electrically efficient."
According to Richani, the market for air-conditioners in the UAE is growing between 15-20 per cent per year in terms of revenue.
Rupesh Sinha, manager of VTS Clima, says: "The growth in this sector has been exponential. At VTS Clima we have had 300 per cent growth over last year's volume. With our global presence in the Asia Pacific, Central and East Europe, we can see that the UAE has the highest per cent of growth as compared to other markets — almost 25 per cent every year."
Continued growth
The latest findings of the Japan Refrigeration and Air Conditioning Industry Association show continued growth in the AC segment with more than 2.7 million unit sales projected by 2008.
According to a study by the US Foreign Commercial Service, the UAE economy is moving towards the booming fields of hospitality and tourism, up-market real estate industry, international finance and investment, media services and production, and other free zone trade and services.
This growth reflects the general expected demand on air-conditioning systems in the UAE. The Middle East supply structure for air-conditioners remains intensely competitive as well as complex with a number of major producers, brands and importers.
In the Middle East three related trends have converged to create a huge opportunity for district cooling — boom in real estate development, emphasising greater cooling demands; an increase in power demand driven by new cooling needs; and lack of sufficient generation, transmission and distribution infrastructure to meet the projected power demands.
According to B.S. Prashanth, Business Development Coordinator of Palm District Cooling (one of the leading companies involved in setting up district cooling systems in the UAE), "Big property developers such as Nakheel, Emaar and Dubailand have incorporated district cooling systems into their developments. These cooling systems are being preferred to the more conventional form of air-conditioning systems for several benefits they provide.
It ranges from substantial savings at the user's end, reduced annual operating, maintenance and staff costs (including space saving for building owners) to reduction in power infrastructure for property developers."
PDC is constructing several district cooling plants at the Palm Jumeirah Crescent, Discovery Gardens, Jumeirah Village South, Dubai Maritime City and International City phases 2 and 3.
"The most important thing is that district cooling systems help control global warming and global depletion by using energy-efficient and environment-friendly refrigerants. They decrease sound pollution, save off-peak consumption of electricity and utilise energy efficiently."
District-cooling
According to figures released by the US Foreign Commercial Service, in the first quarter of 2006 Tabreed (which has pioneered energy efficient gas-fired and electric-powered district cooling solutions in the UAE and across the region) announced revenues of Dh52,342,000, a 36 per cent increase over the first quarter of 2005.
The US-headquartered International District Energy Association (Idea) has estimated that the rapid rate of Middle East construction will generate demand for cooling services of more than 10-20 million tonnes of refrigeration. According to an estimate by Idea, investments in the Middle East district-cooling sector will range from $10-$30 billion over the next 10 years.
"The regional real estate sector, with more than $1 trillion in projects being planned or under construction, has adopted district cooling as a preferred technology," said Rob Thornton at the International District Cooling Conference in Abu Dhabi recently.
As consumers become more conscious of the air they breathe, the choices are also becoming more varied. Nikai, for instance, has launched a new range of air conditioners with a Vitamin C filter, which provides healthier air.
Jaroslaw Jozwiak, Managing Director of VTS Clima, says "The Fresh Air Handling Units and the Air Handling Units of the Ventus range of air conditioners from VTS Clima are environment friendly. They use special filters and are silent, compact and energy efficient. Our entire range is Eurovent certified."
According to Sang Toon Kim, General Manager, Home Appliances Division of Samsung Electronics Limited: "Samsung has developed the Micro Plasma Ion device that generates active hydrogen. This helps in decomposing the virus present in the air into water. Our ions are neutralised, and therefore, not harmful."
The Good Sleep Mode air conditioners from Samsung also save 30 per cent electricity.
Carrier's Xpression Health Plus series of air conditioners features powerful cooling and energy savings and offers multiple health benefits such as reduction in fatigue and allergies.
In addition to this Carrier's latest technology, the 30XA Aquaforce chiller (which suits the extreme climatic conditions in the Middle East) is now being applied in large chillers.
This technology uses the non-ozone depleting refrigerant R134a that does not deplete the Earth's ozone layer.
