Fundamentally, the outlook for regional demand looks positive for 2021, underpinned by a recovering global economy that will support oil prices. In turn, this will drive ongoing construction activity in most regional markets as governments seek to diversify local economies and create employment.
New growth segments - including transportation, logistics, finance, alternative and renewable energy, telecommunications, technology, petrochemicals, metallurgy, and iron & steel - will play a key role in the move to increase levels of economic diversification and the overall transition to a knowledge-based economy backed by creativity and innovation.
The steel industry in the UAE is projected to grow 30% in 2021, driven by the ambitious projects to be completed. Demand for steel products remains on a stable upward trend despite fluctuations in the construction market, with further considerable growth expected for 2026 and beyond which will encourage local producers to cater for anticipated projects. Major investment plans include the multi-billion dollar, 20 million square feet Dubai harbour venture.
The manufacturing sector’s share of the UAE’s total GDP is set to increase from 14% to nearly 20% during 2021.
As regards market opportunities, the fabrication industry requires high-end machinery in order to provide on-time deliveries and ensure quality and craftsmanship on every part. Furthermore, demand for machinery and tools used to bend and cut pipes and tubes has been on an upswing thanks to rising pipe and tube requirements in hundreds of infrastructure as well as petrochemical, oil and gas projects across the region. Heavy fabrication and the focus on renewable energy usage have also given impetus to growth in welding markets, and hence to demand for welding and cutting machinery.
Sharif Metals Ltd (ARE), Representative of the BIR Young Traders Group