Tag Archive | "Booming"

Booming GCC construction sector fuels growing international interest in region’s lighting fixtures market

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Booming GCC construction sector fuels growing international interest in region’s lighting fixtures market

481The GCC’s construction boom is fuelling international interest in the region’s fast-growing lighting market, as country pavilions from the UK and Malaysia headline a strong global presence at the Middle East’s largest trade exhibition for lighting design and technology.

According to market research firm Ventures ME, an estimated US$128.4 billion worth of construction projects are currently underway across the Gulf region this year, ramping up demand for the commercial lighting fixtures sector.

The impressive business opportunities haven’t gone unnoticed by the government-backed UK and Malaysian Pavilions at Light Middle East, which takes place from 3-5 November at the Dubai International Convention and Exhibition Centre.

Supported by the UK Lighting Industry Association, the UK Pavilion is participating at the three-day event for the first time since 2006, with 14 leading lighting manufacturers on board, while the Malaysian Pavilion will feature at least eight top companies.

Peter Hunt, COO of the UK Lighting Industry Association, said: “The Lighting Industry Association (LIA) is proud to be bringing this group of 14 companies to Light Middle East 2014. A survey of our members in 2013 showed a strong interest in the Middle East markets and we now have a waiting list for companies wishing to join the group.

“The LIA recently launched a joint industry and government Lighting Sector Strategy which calls for a greater push for exports. Participating at Light Middle East is a positive step towards that goal.”

Among the leading UK manufacturers showcasing their products at the UK Pavilion are Bri-Tek Technologies; BSS-LED; Danlers; Fern Howard; Illuma; Isotera; Iviti; Kosnic; LED-Flex; Light Emissions; Luxonic; Rasmi; Soraa; and DW Windsor.

Stealing the spotlight will be Light Emissions, which will introduce the world’s first full range of architectural LED video displays to thousands of trade buyers.

Peter Ed, Managing Director of Light Emissions, said: “The Gulf region is, without doubt, the most vibrant economic area in the world today, with vision to build for the long term future. This is why Light Emissions is so excited about engaging with visionaries at Light Middle East that are designing and shaping the Gulf cities of tomorrow.

“Light Emissions’ innovative architectural LED Video displays are a perfect fit for the GCC’s future, and will enhance landmark buildings and spaces for many decades. With prestigious installations already in Saudi Arabia and Abu Dhabi, we have the local experience, and are perfectly positioned to shape the visual future in the Middle East.”

The Malaysian Pavilion at Light Middle East is organised by SME Corp, featuring products and services from Ecotech; Avialite; Extra-Built; Hans Ledlite; LED Vision; P-Plus and Primelux.

Organised by Epoc Messe Frankfurt, Light Middle East is the region’s only exhibition dedicated exclusively to the lighting industry, presenting the latest innovations and advancements of the rapidly evolving sector.

Ahmed Pauwels, CEO of Epoc Messe Frankfurt, said: “Valued at US$2.5 billion in 2013, the GCC lighting market is driven by the ongoing construction boom we are now witnessing across the region.

“As a result, we’ve seen a surge in interest at Light Middle East from leading international lighting manufacturers and suppliers interested in boosting their regional business links. The UK and Malaysian Pavilions underline the show’s widening global footprint.

“Light Middle East offers a highly credible interactive platform for major international players to gain access to and network with thousands of buyers and traders from across the region.”

Light Middle East 2014 is expected to host more than 250 exhibitors from over 25 different countries. Now in its 9th edition, the dedicated lighting industry showcase attracts wide support from industry associations and regional authorities.

Among the leading attractions at this year’s edition will be the Future Zone, an exciting showcase of futuristic products and technology, cutting-edge design and trends from some of the leading international manufacturers and designers.

Training the spotlight on key industry issues will be the two-day Light Middle East Conference from 4-5 November, attracting a large number of leading industry experts, thought leaders and regional specialists.

Light Middle East 2014 will also feature the Light Middle East Awards, designed to celebrate excellence in lighting design. The Awards will recognise some of the region’s leading lighting projects across 12 categories. Nominated entries will be judged by a panel of renowned lighting design experts, with the deadline for entries set for 31st August 2014.

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The one thing to count on: GCC luxury spending booming despite regional turmoil

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The one thing to count on: GCC luxury spending booming despite regional turmoil

3176The GCC luxury goods market has continued to grow fast, at a rate of five to eight per cent, despite regional woes, according to a study.

The market has been mainly driven by tourism growth (nine to 10 per cent) while the resident market has been growing but at a slower rate, according to Bain & Company’s Global Luxury Goods Worldwide study.

“GCC nationals and residents continue to buy a large share of their luxury goods abroad to experience their favourite brands in their native environment. As GCC retailers continuously enhance the customer experience in-store, they may succeed in capturing this latent demand,” said Cyrille Fabre, Bain & Company partner, who leads the Retail & Consumer Products practice for the Middle East.

In a report last year, Bain stated that Dubai commands around 30 per cent of the Middle East luxury market and around 60 per cent of the UAE’s luxury market. The Dubai Mall accounted for around 50 per cent of Dubai’s luxury purchases.

Globally, growth in the sector remains steady despite issues such as economic weakness in Europe, the market crisis in Russia, and destabilising exchange rate fluctuations across the world. Sales revenue growth in the luxury sector is still in line with 2013’s full year figures, and is expected to continue through the year, said Bain.

Overall growth for the first quarter extended the 2013 full year trend of four to six per cent, a possible  ‘new normal’ growth pattern, according to Bain. “With luxury goods we are seeing the emergence of a new normal: the global market is maturing, stabilising and consolidating,” said Claudia D’Arpizio, a Bain partner in Milan and leader of the firm’s Global Luxury Goods and Fashion Practice.

“It is becoming more resilient to economic crises, more responsive to a demanding and highly mobile global consumer base, and less reliant on market booms for growth. For all these reasons, luxury brands everywhere should be focusing on how to build growth organically,” added Claudia.

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Booming construction activities in Saudi Arabia fuel demand for furniture imports

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Booming construction activities in Saudi Arabia fuel demand for furniture imports

4245With $784 billion worth of construction projects currently underway in Saudi Arabia[1], the market offers strong growth potential to international interior and design companies. Major infrastructure developments and real estate investments are contributing to the buoyancy of the local interiors market, fueling demand for furniture imports.

Providing a gateway to this lucrative market opportunity is Decofair 2014, Saudi Arabia’s only premium international furniture and interior design show. The sixth edition of Decofair takes place from 10th - 13th November 2014 at the Jeddah Centre for Forums & Events and organisers say international and local exhibitor interest has already exceeded last year, with many well known international brands having confirmed their presence at the show for the first time.

Leading interior brands and key design distributors from Italy, Spain, Saudi Arabia France and Denmark are among the early bookings. Confirmed exhibitors include brands such as BoConcept, Roche Bobois, Fendi Home, Kenzo Maison, Roberto Cavalli, Casa D’Argento, KA International, Dogtas, Hans Grohe, Roca and Scavolini. The major local distributors, including Al Bonian Group, Al Mutlaq, and Al Sorayai, will also have a presence at this year’s show.

“Saudi Arabia is the largest and fastest-growing construction market in the Gulf, and this is having a positive knock-on effect on the local interiors and furniture markets. Spending on furniture items is expected to grow 13.7% annually to 2017[2]. Currently, furniture imports in the Kingdom total $2.2bn. This is the most buoyant interiors market in the Middle East, and Decofair is the only credible design platform through which to access it,” said Naomi Barton, International Sales & Marketing Director, Reed Sunaidi Exhibitions.

Saudi Arabia’s promising outlook is being driven by government and private sector investments across all real estate segments. Increased spending on commercial, residential, hospitality and industrial real estate projects is forecast to continue until 2020 as the government seeks to develop the country’s socio-economic infrastructure.

Upcoming mega-projects such as King Abdullah Economic City, Kingdom City and Jazan Economic City are well underway and positively impacting the local interiors market. Other iconic projects include the $40 bn Sudair Industrial City, $15 bn King Faisal University and $16 bn Jeddah Kingdom Tower.

Rising demand for housing is another factor contributing to the Kingdom’s construction boom. Recently, Saudi Arabia’s Government launched ESKAN, a new scheme to provide housing aid to its citizens and a necessary policy to tackle the needs of the country’s growing middle class.

For the first time this year, Decofair will be co-located with the Saudi Real Estate & Investment Show, offering investors direct access to KSA’s real estate investment opportunities.

“With the Saudi real estate market buoyed by strong internal growth drivers, the outlook looks extremely positive for interior and design companies wanting to access the Kingdom. Decofair offers the world’s best design brands the only high-end platform in the Kingdom where they can meet the country’s key design professionals,” added Barton.

Decofair 2014 covers the interiors industry from A to Z, providing exhibitors with the opportunity to showcase their products and services in nine exhibition sectors: furniture, furnishings, flooring, accessories, lighting, textiles and soft furnishings, outdoor furniture, kitchen and bathroom products, and design and architectural services.

Decofair is organised by Reed Sunaidi Exhibitions, a joint venture between the world’s largest event company Reed Exhibitions—a co-organiser of global design show Maison et Objet—and Sunaidi Expo, a division of Alfadl Group. The event runs from 10th – 13th November and is open to business, trade and selected consumer visitors.

For more information, please visit www.decofair.com

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Inside the GCC’s booming construction industry

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Inside the GCC’s booming construction industry

4162The projects markets of the Middle East are set to enjoy a record-breaking year in 2014 with more than $40 billion worth of new contracts awarded in the GCC alone in the first quarter, a report said.

New contract awards in the GCC will approach $150 billion in the year ending 2014 compared with about $135 billion in the previous 12 months. The project boom encompasses all six GCC markets and extends across all sectors, said the Meed report.

Figures compiled by Meed Projects show that a total of almost $2.5 trillion worth of contracts are planned or under way in the GCC. A further $500 billion worth of projects are at a similar stage in Iraq. For the Mena region as a whole, more than $4 trillion worth of projects are planned or under way, it said.

So far, among the high profile projects that have been awarded include the $12 billion Kuwait National Petroleum Company’s Clean Fuels Project; Qatar’s Ashgal has so far awarded over $3 billion worth of projects for the Expressway and LRDP schemes; Abu Dhabi’s Musanada has awarded over $1 billion worth of contracts for the Mafraq-Ghuweifat Road Development project; Qrail has awarded $700 million contract for the Elevated Section of the Doha Metro’s Red Line South project; and Al Reem Island in the UAE has awarded the main contract with a value of $705 million.

Confidence is being further lifted by the irresistible rise in project spending in Iraq where oil production last year reached an all-time high of more than 3m bpd. At least $20 billion of new contracts are expected to be placed in Iraq by the end of 2014 in a capital investment programme that will establish the country as one of the most exciting prospects in the world for the local, regional and global construction industry.

This vast, varied and challenging opportunity will be comprehensively reviewed in Meed’s annual Arabian World Construction Summit (AWCS) which opens in the Sofitel Hotel on Palm Jumeirah on May 12.

More than 60 speakers representing all high-growth Middle East construction markets and the largest region’s project sectors will address the event.

Among the highlights of the summit includes a keynote session on developing “Solution-based Delivery Strategies for the Region’s Complex Construction Projects”.

Saudi Arabia, the Middle East’s biggest project market which is expected to witness more than $70 billion of projects awarded in 2014, will once again be at the heart of the conference.

Speakers will review the trends in the kingdom’s construction industry and evaluate the opportunities in energy, water, rail, port and real estate markets. Special attention will be paid to the remarkable King Abdullah Economic City (KAEC) in Rabigh where one of the world’s largest new ports started operations earlier this year, and progress on the Jeddah Kingdom Tower, the world’s tallest high-building, and the supporting development.

A special presentation will be delivered by the General Authority of Civil Aviation (GACA), the largest new airport client in the Middle East.

The UAE will get special attention as investment in the federation starts in the run up to the opening of the World Expo in Dubai in October 2014. More than $100 billion worth of new projects is on the agenda for the emirate which expects 25 million people to visit the six-month expo.

The conference will review some of the largest real estate developments in Dubai including exciting projects being developed by Meraas Holdings.

Other markets to be reviewed will include Oman, Bahrain, Iraq and Egypt where 40 megaprojects worth more than $500 million are planned or under way.

The challenge of delivery complex, multi-component megaprojects will be one of the key themes of AWCS 2014. Regional and global experts in megaproject delivery and the role high-level programme management can play in bringing megaprojects in on time and budget will be among the key participants in the event.

“The AWCS was launched in 2007 and is established as the premier annual event for major clients and senior construction industry executives working in the Middle East megaproject market,” says Meed Events chairman Edmund O’Sullivan. “This year, the delegates will learn about the widest range of new projects and construction opportunities since the first AWCS opened seven years ago. I’m confident they will leave inspired to intensify their efforts across the region.”

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Saudi construction sector booming on new contracts

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Saudi construction sector booming on new contracts

496The Saudi construction sector is poised for significant growth over the next few years thanks to the boom in contract awards and ongoing construction activities coupled with healthy lending appetites by bank, said a report.

The level of spending in the construction sector has seen remarkable growth over the past few years and is projected to continue this pattern over the medium-term, stated top Saudi lender National Commercial Bank (NCB) in its review.

The global economic slowdown played a significant role in the declining growth of construction spending owing to numerous project delays and cancellations. Hence, construction spending slipped from 9.2 per cent of non-oil GDP in 2008 to 8.4 per cent in 2010, it added.

Meanwhile, spending on construction has rebounded to 8.9 per cent of non-oil GDP in 2012. Construction spending represented 4.4 per cent of nominal GDP during 2012 and has been steadily rising over the past five years, said the NCB in its report.

To gauge the level of activity in the construction sector, the Gross Fixed Capital Formation (GFCF) reveals a static snapshot of the degree of growth in both, residential and nonresidential construction within the Kingdom.

Residential GFCF has been hovering around 2 per cent of nominal GDP over the past couple of years, while non-residential GFCF jumped from 5 per cent in 2006 to an estimated 6 per cent of nominal GDP in 2013.

This indicates the government has put a strong emphasis on expanding the infrastructure sector over the last six years to offset the effects of the global economic downturn, which caused delays and suspensions due to limited commercial financing of many planned projects.

The stagnation in residential GFCF over the last several years hindered the availability of housing units to meet the rapidly growing younger population.

Over the last several years, the construction industry has witnessed a boom in contract awards and ongoing construction activities. As part of the Kingdom‘s initiative to diversify its economy away from the oil and gas industry, the construction sector has benefited from heavy expenditures, stated the NCB.

Bank credit to construction sector soared to SR76.5 billion ($20.3 billion) in 2012 from SR37.8 billion in 2006, representing a CAGR of 10.6 per cent.

The global financial crisis hampered loan distributions during 2009 as banks became increasingly risk averse following rising non-performing loan ratios, said the NCB in ist report.

However, the rebound exhibited between 2010-2013 coincides with the growth in contract awards, as the public and private sectors regained their confidence and reinvigorated more lending and construction activities.

As a result, the share of bank credit to the building and construction area relative to total bank credit extended to all economic activities jumped from 6.1 per cent in 2009 to 6.8 per cent in 2012, the report added.

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Booming GCC hospitality sector drives significant regional sales growth for Dornbracht

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Booming GCC hospitality sector drives significant regional sales growth for Dornbracht

4176Dornbracht, the German manufacturer of high-end fittings and fixtures for the bathroom and kitchen, today announced a 60 per cent increase in UAE project sales for 2012-2013, resulting in a record year that matches its pre-crisis sales levels.

The strong results come at a time of robust expansion in the regional hospitality sector with some 485 hotels and 118,535 rooms planned for development. According to the July 2013 STR Global Construction Pipeline Report, Oman has the highest expected supply of new rooms (+59.9 per cent) followed by Saudi Arabia (+56.8 per cent), Qatar (+48.7 per cent) and the UAE (+33.2%).

With a significant proportion of the new hotel pipeline comprising five star luxury developments, Dornbracht anticipates even stronger demand for its bathroom fittings and accessories over the coming months.

“Dornbracht’s longstanding presence in the region, as well as our reputation for innovation and trendsetting design, has ensured that we remain the supplier of choice to architects and interior designers looking for quality, luxury fittings to complement their projects. We are extremely pleased with this year’s project sales and look forward to completing a number of landmark projects in 2014,” said Phillip Payne, General Manager, Dornbracht Middle East.

The German manufacturer is already supplying some of the UAE’s most anticipated hotels due for completion in 2014 including: The Regent Emirates Pearl Abu Dhabi by Dennis Lems Architects Associates/MKV Design (UK); The Four Seasons Jumeirah by DSA Architects and Bamo (USA); and The Sheraton by Erga Architects (Erga Progress Engineering Consultants) and WA International. Fittings supplied by Dornbracht will include taps, bidets and showerheads from its MEM, IMO, DEQUE, Symetrics and Performing Water ranges.

“The region’s hospitality sector is among the most competitive in the world and its guests expect the ultimate in luxury during their stay. The fact that Dornbracht has been selected to supply three of the region’s most prestigious hotel developments is testament to our ability to work with the design community to realise their projects. All of the fittings selected reflect the hallmarks of Dornbracht; quality, functionality and superlative design,”Payne added

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Rubber World Industries secures major contracts in Qatar’s booming construction industry

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Rubber World Industries secures major contracts in Qatar’s booming construction industry

Leading rubber manufacturer to supply two of the country’s leading mega projects with world-class rubber insulated products

July 5, 2011

221Rubber World Industries (RWI), the leading manufacturer of closed cell rubber insulation ‘Gulf-O-Flex’ in the Gulf and South East Asia, and a part of the international business conglomerate, the Shaikhani Group of Companies, has revealed that it has secured two major contracts in Qatar further strengthening the company’s efforts to position itself as a major player amidst the ongoing construction boom in the country. The leading manufacturer of rubber insulated building materials was recently awarded contracts in two of the country’s top mega projects, which includes the construction of the Al Khor Mall and the Barwa Al Khor real estate development project. Under the terms of the contracts, RWI will supply its world-class high quality rubber insulation and adhesives products from the company’s extensive product portfolio to the two projects with the total volume of material being estimated at around USD 11,000 per project. RWI products have been identified as essential building materials in today’s batch of construction and development projects mainly for its durability and competitive pricing. These products are dust free, fiber-free, CFC free, Zero ODP and have low VOCs making them mold and mildew resistant.

The Al Khor Mall is a commercial shopping mall construction project that stretches out over 94,000 square metres and has a total value of over USD 54.93 million. Arab Engineering Bureau, one of the region’s leading construction groups, has been awarded the MEP contract for the Al Khor Mall Project. Meanwhile, Barwa Al Khor is a USD 8.2 billion real estate development project that covers an enormous area of 5,459,168 square metres approximately. Al Khor city is to feature creatively inspired designs of villas and town houses, terraces, flats and mixed use areas, two sprawling hotels, a shopping mall, four top schools, offices, a mosque and an international golf course. The project anticipates offering 24,114 units as homes to the elite with 5 star quality services to surround them. Urban Planning and Design Authority has been awarded the MEP contract for this project. RWI will provide rubber insulation tubes and tapes, which boast of environmental-friendly features, cost effective and are ready to use without any wastage.

“The recent announcement of Qatar as the host for the 2022 FIFA World Cup has driven in a construction boom for the country, with infrastructure projects amounting to over USD 100 billion over the next 12 years,” said Muzammil Shaikhani, Managing Director, RWI. “Rubber World Industries is looking towards participating in the forecasted influx of construction projects in the country. We remain steadfast in living up to our promise of providing our clients with an integrated suite of rubber insulated and adhesive solutions essential to their respective projects.”

RWI has implemented the strategic initiative of diversifying its trading items to help create a stronger and improved line of construction essentials, which is primarily targeted at region’s flourishing construction and development industry. The move, which involves the roll out of a wider product range, is aimed at leveraging the company’s leadership in the rubber based construction and building materials segment in both the Middle East and the rest of the international market. RWI’s trading items include copper coils and tubes, capacitors and glue - also encompassing a complete range of AC parts and accessories, refrigerant gas cylinders and various kinds of adhesives. The company is also looking to capture the HVAC related industries as HVAC products are always in high demand due to the region’s warm climate. All of RWI trading items are world-class high quality items that are competitively priced giving its customers the advantage of lower prices and other key benefits.

“Rubber World Industries is confident that Qatar will become an important regional business hub and a key market for our products. The increased demand in the market complements our goal to expand our client base in Qatar during this period of important development and growth being seen in the country. We are aiming to leverage its key products across these major projects and raise awareness on the benefits and advantages obtained from using them,” concluded Muzammil Shaikhani.

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Booming food sector creates new opportunities in GCC’s job market

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Booming food sector creates new opportunities in GCC’s job market

HR outsourcing serves as cost-efficient tool for expanding food companies to access right talent pool; UAE food import value in 2009 reaches      USD 6.78 billion

August 11, 2010

279The food sector is poised to serve as one of the catalysts for growth in the GCC job market as food investments continue to surge in line with efforts to attain self-sufficiency. GCC countries currently import up to 90 per cent of their food with the UAE expenditure alone reaching up to USD 6.78 billion in 2009 .

Recent figures from the Dubai World Trade Centre shows that there are now at least 150 food processing plants in the UAE as the country continues to aggressively promote food investments, with the UAE Government leading the way by committing a total of USD 1.4 billion in investments. The influx of international fastfood chains, which are moving away from recession-hit markets into high-growth destinations such as the GCC, has further strengthened the food sector.

The halal food market is another key growth area for specialised manpower services. With increasing demand from 1.8 billion Muslims worldwide, UAE companies are now positioning themselves as major suppliers of the halal food industry, which has been estimated to generate between USD 632 billion and USD 2.1 trillion  annually.

The food sector is undoubtedly one of the fastest-growing industries in the UAE and the rest of the GCC. It is also one of the most HR-intensive industries because of the rapid expansion initiatives being implemented by food companies. The Ramadan season is particularly important for the industry with demand for food and food-related services sharply increasing at this time of the year, creating a corresponding need to hire more people.

Valerian D’Souza, Head of Manpower Services, DULSCO HR Solutions suggests that, ‘Outsourcing is an excellent option for food companies to satisfy their immediate employment requirements without tying down their HR or administration departments on activities such as employee recruitment, visa procurements, and the deployment of administrative support to new employees.’

Dulsco HR Solutions pool of 5,000 experienced manpower can be swiftly and seamlessly deployed to any workplace environment. The organisation has augmented its standby workforce to include capable food and special events industry practitioners, who are also equipped with the required licenses and documentation for the industry.

In today’s highly competitive markets, outsourcing provides an effective means for food and packaging companies to streamline their business and stay ahead of the competition.

“Many companies use Human Resource outsourcing as a strategic tool to ease their HR burdens and allow them to focus on their business. HR outsourcing offers numerous benefits, such as reduced operational costs, access to well-matched skills, and enhanced employee relations, which are all very attractive for companies that are expanding in the region and are looking for an efficient way to recruit the right people,”  concluded D’Souza.

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