(MENAFN- Khaleej Times) The future of steel fabrication industry in the UAE and the GCC is bright in the wake of winning rights to host mega international events in the region, industry experts say
The demand for machinery, metals and steel products is on the rise and the industry is gearing up for head to head competition with the global peers as massive spending on infrastructure projects and positive sentiments in the region fuels growth in the core sectors
"I believe the regional metal fabrication industry should be looking at the larger picture now - the combined advantages of the World Expo 2020 in the UAE and Fifa World Cup 2022 in Qatar, that too in quick succession," chief executive officer of Expo Centre Sharjah Saif Mohammed Al Midfa told Khaleej Times after successful 10th edition of SteelFab, which concluded last week
He said the phenomenal success of the just-concluded 10th SteelFab points to the fact that the regional fabricators are getting ready to meet the massive requirements that will be generated by the infrastructure and other construction works that are either under way or will be announced soon in the run up to these mega events
Regional project tracker MEED Projects said positive sentiments returned to the UAE economy in general and luxury, retail and hospitality in particular during 2013. It recorded more than 500 new projects last year - the biggest number of new projects created in any year since 2008 - and estimated that UAE's projects market could return to above $40 billion levels in next two to three years
"While Dubai is set to spend over $18 billion for the World Expo, Qatar has earmarked a staggering $200 billion for the Fifa World Cup. 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," Al Midfa said
"While it is easy to quantify the short-term benefits of the World Expo and the World Cup, more rewarding will be the long-term advantages. I am sure these events will lay a strong foundation for the country's growth for years to come. And, SteelFab will play a key role in sustaining the fabrication industry's long haul," he said
The exhibitors and participants at SteelFab were also upbeat on phenomenal growth in the core sectors and revival of construction industry in the region. They recorded brisk business during the four-day event, which noted 50 per cent surge in exhibition space, 35 per cent rise in the number of exhibitors and witnessed an increase of nearly 25 per cent in the footfall of trade visitors. The show was held at 24,000sqm of exhibition space, featured 300 exhibitors and attracted 9,022 visitors during the four-day event
"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," Essa Zaid, mechanical engineer at Simco Industry and Machinery, told Khaleej Times
He said following recovery in construction industry and huge infrastructure spending, fabricators see bright outlook for the sector. "About 35 per cent of the products we got to the show are off the shelves, so to speak. We are expecting to sell more than 50 per cent of the products we are displaying at the exhibition, he said
"We are one of the major competitors in Mena region and one of the biggest in the UAE. We are planning to go forward and expand to the global market given the exposure to quality visitors at SteelFab," he said
Abdel Elah Al Ghanama, managing director, SAYES factories equipment and machinery, said after the announcement of World Expo 2020 to be hosted in Dubai, many project got proposed in their region
"We are one of major suppliers of machinery which support the growing demand. For that reason, we increased our exhibition space from 120sqm last year at SteelFab to 240sqm this year." He said the company is expecting to generate minimum Dh3 million to Dh5 million business during the event this year
Echoed the similar views, chief executive of Narex Ind Tools and Equip Company Shihada A. Shihada said mostly products displayed by the company at the show were sold out during the show
"We started realising the increasing interest as sales inquiries started to shoot up. This year at Steelfab we made 50 per cent more sales than last year's edition and it is only the third day," Shihada said, adding that the company is looking forward to expand under the expectation of common trade regulations in the GCC
Jawad Khawaja, managing director of ATAD - UAE, said investments have to start amid this year to support the proposed projects for the World Expo 2020. He said 2015 will be a crucial year for the industry
"We are very optimistic about 2014-2015 forecast. Purely because the global and regional economies are in the right direction and pace," he said
About the business at SteelFab this year, he said: "We have accomplished what we came to Steelfab for. The visitors' response was above expectations as the quality of visitors increased. This is our 6th continuous year at Steelfab; we really appreciate what we receive from participating at this quality exhibition.
"Going by the response and feedback from exhibitors and visitors, I expect the next SteelFab to be much bigger in size and scope, taking into consideration the fabrication sector's rising need to acquire newer equipment and technologies," Al Midfa concluded
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