Strong Demands in Maturing Middle East Market
Time: 2007-11-09 16:33:00¡¡¡¡Source: JCTrans
Despite the blankness of electromechanical industry in the Middle East, there are great market potentials. In Dubai, the largest trading port in the Middle East, the electromechanical market is relatively mature, and the north of Nasa Square is packed with hardware and electromechanical products shops. As electromechanical market is a supporting market to construction and decoration markets, the prosperity of the latter ensures the stable development of the former. Currently the demand for electromechanical products in the Middle East market is increasing at the rate of 11% every year. In the next 5 years, some trillions USD will be invested by Gulf countries in civil engineering, power plant, sea water desalination and petrochemical projects; however due to the fact that local manufacturing capacity is far below demand, exports will be required.
Due to poor electromechanical industry in the Middle East, most products are imported. Taking Dubai as an example, most products are imported from Germany, UK, Japan, China and Thailand, and few from local enterprises. A large proportion is for retails, and the rest transferred to the neighboring countries including Saudi Arabia. According to statistics, the imports of electromechanical equipment in 2005 added up to over 3 billion USD. Among Gulf countries, Saudi Arabia and United Arab Emirates topped the list with a share of 70%. In 2005, electromechanical imports of the two countries amounted to 750 million USD, of which United Arab Emirates 246 million and Saudi Arabia 504 million.
Stimulated by rapidly developing economy of Gulf countries, especially the rebuilding of Iraq and Lebanon, the Middle East electromechanical market booms. Meanwhile, restricted by the high price of electromechanical products of European countries and America, many Middle East turned to China for stable but cheap substitutes. China electromechanical industry has become mature after decades’ development, and many products are exported to the western countries, which certainly conforms to the requirements of the Middle East market. Especially in these years, the domestic market in China has become saturated, forcing manufacturers to find other “marine outfall” in the Middle East. In line with this trend, China Fair Jordan emerges to serve the economic development of the Middle East, especially the rebuilding of Iraq and Lebanon. It is reported that a special zone has been established for electromechanical products at the forth China Fair Jordan to promote more China electromechanical enterprises to join. Currently the invitation works have begun. In addition to the press conference in Nov. 2006, another promotional meeting was held at Jinan at the end of Dec, where it was warmly welcomed by numerous enterprises. It is also known that in the following two months, the organizing committee will hold promotional meetings at Zhejiang, Fujian and Guangdong at the invitations of local CPIT so as to provide services for China enterprises wishing to explore the Middle East market.