Middle East alone will need to invest $18 billion in next 5 years in new pipelines and associated infrastructure
The organizers of Tube Arabia, Metal Middle East and Arabia Essen Welding & Cutting (AEWC), said on the second day of the shows that GCC is expected to add more than 21,000 km over the next five years to its current pipeline network, approximately 14% of the global planned pipeline network of 161,000 km.
This was highlighted for trade visitors who attended the second day of the region’s top trade and industrial shows dedicated for sheet metal, welding, machine tools, die molds and tubes that runs at Dubai International Convention and Exhibition Centre until Tuesday, 13 January.
Organisers added that, in addition to having the largest concentration of energy resources in the world, the Middle East alone would need to invest around $18 billion over the next five years in new pipelines and associated infrastructure, ensuring a high volume to weight ratio, according to International Energy Agency (IEA).
Satish Khanna, General Manager, Al Fajer Information and Services said Tube Arabia, Metal Middle East and AEWC have generated strong response, as the sectors are set for further growth due to increased demand.
He said: “Expansion of the region’s population and investments would require more and more manufacturers of metal products, mainly tubes and pipes and related solutions like welding. During the first two days, major decision makers visited the shows to explore potential trade deals and widen their knowledge about latest solutions and technologies.”
According to recent statistics, the UAE mills produce 500,000 Metric Tonnes per annum of tubes and pipes, of which 65% is exported to neighboring and international markets and 35% consumed internally.
Khanna added: “The UAE has manufacturing facilities to produce three times the local demand. With that in mind, more and more buyers from around the region find the UAE market a fertile buying spot, not only because it has the production capacity but also it enables transfer of new technologies to the region.”
Anil Chandwani, CEO, Ajmal steel Tubes and Pipes and Industries, one of UAE’s leading manufacturing companies, said: “We have decided to be part of Tube Arabia as it offers a chance for interacting with industry peers. This will help Ajmal to identify scope for betterment in all the fields to meet the market demand and expectations.”
“We produced 50,000 Metric Tonnes of pipes and tube across various types, including rebar, ERW pipe, galvanized pipes in the first three quarters of 2014. We understand that the UAE caters more to the export market due global demand. UAE exports 65 - 75 % of its production and consumes only 25- 35 %. We expect the market to be steadier in 2015, driven by globalization.”
Jeen Joshua, Group Exhibition Manager, Al Fajer Information and Services added: “We are delighted with the response we received so far at Tube Arabia, Metal Middle East and AEWC. We are expecting more deals to be signed on site on the remaining days of the show.”