Demand for steel sees annual rise of 5 to 6 percent in the GCC

Demand for steel sees annual rise of 5 to 6 percent in the GCC
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Published October 25th, 2010 - 12:53 GMT

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Europe, India and Taiwan will occupy 70 percent of total space at Tekno/Tube Arabia 2011, the 10th International Trade Fair for industrial machinery, metal working, machine tools, tubes and pipes industry that will held from January 8 to 11 at the Dubai International Convention and Exhibition Centre.

Steel used for pipes and tubes will be highlighted at the three-day show. According to figures released by Al Fajer Information and Services, there are 67 steel plants in the Arab region valued at Dh10.3 billion ($2.8 billion) and the demand for steel is rising at five to six per cent annually.

Mr. Satish Khanna, General Manager, Al Fajer Information and Services, organizer of Tekno/Tube Arabia 2011 with Messe Dusseldorf GmbH as the overseas associate partner, said: "It is predicted that half of the world's steel production will be done in Arab countries by 2012. The local steel market has been witnessing impressive growth due to the widespread availability of energy in the UAE to support the manufacturing of steel products. The building blocks of the UAE's economic development are the significant core industrial and infrastructure sectors such as the steel industry. We have seen high demand for steel products from exhibitors at Tekno/Tube Arabia who are keen to target the worldwide market through the show."

Khanna said that several large European, Indian and Taiwanese companies would be participating in this edition of Tekno/Tube Arabia, the only specialized and established event of its kind in the Middle East which has helped foster this growth for the past 18 years and the show is offering an ideal platform for companies to make inroads in the booming Middle East.

With an annual consumption of five million tonnes of steel products, the industry has provided a steady supply to sustain the manufacturers of steel-based products across the GCC which attracted Dh24 billion ($6.5 billion) worth of investments in industries pertaining to steel according to organizers of the show.

Khanna added: "The UAE has been a significant contributor to the overall development of the GCC's steel trade. The UAE steel industry mirrors the country's strong growth in the economic and industrial sectors."

Khanna added: "Steel manufacturers in Arab countries are exerting efforts to integrate and consolidate their position in the face of a growing worldwide industry trend of mergers and acquisitions."

As far as tubes industry is concerned, the Middle East has witnessed the launch of a series of new tubes plants one of which is the Empower Logstor Insulated Pipes Systems (ELIPS), the UAE's largest pre-insulated pipe manufacturing facility, in Jebel Ali.

Khanna commented: "These plants signify UAE's drive towards diversification of economy in order to sustain growth. The GCC nations will soon be transformed into major players in international pipes, tubes and steel industry. This will help the region achieve one of the most important goals — diversifying their income sources." 

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