UAE construction industry showing signs of defiance against global crisis
Investment in Big 5 PMV creates purpose built home for industry event as completed projects in first half of year outpace whole of 2008
The UAE construction industry is showing signs of defiance in the wake of the global economic crisis, with over 200 projects to be completed in the first half of this year, more than the total for the whole of 2008.
Research by industry analysts Proleads has revealed that only 2.4% of 1,289 UAE construction projects worth $1.28 trillion which were under way at the start of the year have been cancelled.
Approximately 135 projects were on schedule to be completed in the first quarter of 2009, with another 70 to be finished in the second quarter, compared with a total of 184 overall last year.
The figures were highlighted today as development plans were released for the Big 5, one of the world’s largest trade shows for the construction industry and associated suppliers, when it takes place for a 30th year in Dubai in November.
A new purpose built temporary structure and outdoor exhibit area is being constructed at the Dubai World Trade Centre to accommodate the Big 5 PMV, the specialised focal point of the exhibition for manufacturers and suppliers of construction plant, machinery, vehicles and equipment.
Simon Mellor, Vice President, Construction at dmg world media, organisers of the Big 5, said: “This investment by DWTC underlines their commitment to the future of the Big 5 PMV, and the confidence they share with us in the ability of the region’s construction industry as a whole to survive the current economic downturn and prosper in the longer term.”
Peter Sutton, Vice President – Venues at DWTC said: “Building on the success of the decision to relocate the Big 5 PMV to Dubai World Trade Centre last year, which led to a 29% increase in visitors over 2007, Car Park C site is undergoing significant re-development.
“The entire site is being leveled and surfaced with a grid network laid throughout for electrics and drainage and the PMV Indoor Area will be a fully functional purpose built temporary structure.”
Despite negative effects of the recession on the construction sector, companies like Al Nawi Group, UAE representatives of Finnish manufacturers Scanclimber, see a silver lining for the construction equipment business and the industry as a whole.
“The construction industry is witnessing a slowdown at the moment, but I believe that if the right measures are taken by the governments, things will start picking up again by the end of the year,” said Aamer Hammoudi, General Manager, Al Nawi Group, who sell Scanclimber climbing work platforms, hoists and access platforms in the Middle East.
Hammoudi said the economic crisis has led to the company focusing its resources on serving its existing top five customers who generate 80 per cent of sales in the Middle East.
“We know that these customers have projects that will take us through the downturn. At the same time, we are streamlining our operations to cut all unnecessary overheads. We are carefully applying our resources into areas that are productive and generating business. Now is not the right time to expand.
“However, there will be a time again, when expansionary strategies need to be taken in order to secure market share. It is hard to predict when we are in clear waters but I believe things will start looking better by the end of the year if the right measures are taken.”
Nick Webb, Director of Streamline Marketing Group, organisers of the Big 5 PMV, said: “With several construction projects still under way and a huge amount of development to be reinstated when the current climate eases, it is very clear that this region needs a plant, machinery and vehicles show.”
“While construction activity may have slowed across the region, Dubai remains the gateway to the Middle East and with the new initiatives to give the exhibition a purpose built home, we’re confident of delivering an exceptional event this year that will deliver a significant return on investment for exhibitors in difficult times.”
Humaid Salem, General Manager of the Contractors’ Association said: “The Big 5 PMV is an important event for the construction industry in the Middle East and North Africa region, as it provides a dedicated arena for manufacturers and suppliers of plant, machinery and vehicles to meet with construction professionals from across the region and beyond. The event brings the industry together, which is particularly important at this time.”
Last year’s Big 5 PMV grew in size by 39% on 2007 to cover 40,000 square metres of floor space, with 412 companies represented on exhibition stands.
While the UAE had a strong presence with 72 exhibitors, the international pull of the show and the lucrative nature of the Middle East construction sector were highlighted by the fact that 28 countries were represented including Italy, Germany, France, USA, Taiwan and China.
