With several new projects been announced recently in infrastructure, pipelines, airports, real estate, and industrial sector and with government initiative of diversifying economic has given a major boost for the development strategy, the immediate beneficiary here is the core sector that propels the steel fabrication and metal working industry, of which tubes, pipes, rods, wires, cables and welding, cutting, joining, and surfacing is an integral part.

Steel manufacturing sector in the UAE in 2017 is witnessing standard trends with improvement in growth by 15 to 20 per cent compared to that of the last year, thanks to the announcement of major infrastructure development projects across the country

The GCC states are amongst the highest consumers of iron and steel products, well above the global average of 240 kg per person

The GCC is expected to add more than 21,000km during the coming five years to its current pipe network, approximately 14% of the global planned pipeline network of 161,000km. The additional pipeline networks in the GCC is expected to deliver a planned demand of steel pipes around 5.3 million tons during the coming five years which is equivalent to USD 7.2 billion

Additional US$50 billion to be spent by GCC Oil producing countries to increase their current oil field production capacities or to develop new discoveries has truly ignited the tube and pipe industry. New investments in the Gulf’s pipe, tube and steel industries are expected to exceed $20 billion between now and 2020.

Medium voltage cable market share was the largest in 2015 and is likely to continue its dominance from 2016 to 2023. It is predicted to grow at over 8% CAGR

The GCC produced 14 million tonnes of pipes and tubes with a domestic consumption of 2.5 million tonnes used for energy, infrastructure development, construction projects, water and air conditioning supply

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According to the World Energy Council, KSA, Kuwait, the UAE and three other Gulf countries need to invest up to USD 100 bn over the next decade to meet the growing energy demand. Investment in electric power projects in the GCC is expected to reach USD 45.6 bn over the next ten years, with UAE and Saudi accounting for the majority of the projects.

Middle East Cable Market size is forecast to reach USD 11.98 billion by 2023, industrial sector will grow at 8.5% CAGR expectations from 2016 to 2023.

More than 200 major projects are planned for completion by 2023, costing around USD 1 trillion. These projects mainly involves a combination of real estate, health, retail, leisure, and education asset developments along with communication, transport, as well as supporting social infrastructure systems.

Smart city development around the region such as Mohammad Bin Rashid City (UAE), Basra New City (Iraq) and King Abdullah Economic City (KSA) and the infrastructure upgrading is expected to be the vital factors for Middle East market growth.

Rapidly growing tourism and transportation will fuel growth through 2023.

Rahayel City an integrated auto hub in Abu Dhabi with an approximately investment of Dh1.6 billion to be completed by the end of 2017 which will become a focal point for automotive manufacturers, distributors, service providers and dealers in Abu Dhabi, providing a range of auto-related investment opportunities.


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