Expansion of the Middle
East energy sector continues to intensify
Jul 19, 2005 - Press Release -
Zawya
Governments throughout the Middle
East region are continuing to develop and enhance
their energy infrastructures to deal with the massive
increase in power demand that is resulting from
population growth and the expansion of the industrial
sector.
One of the key developments currently
underway is the US$1.25 billion Gulf Power Grid,
which will connect Bahrain, Kuwait, Qatar and Saudi
Arabia by 2008, the UAE and Oman being added later.
Viewed as an essential project by the countries
of the GCC, it will enable the linked countries
to use electricity from its neighbours in the case
of emergency, ensuring greater stability of power
supply and eliminating the risk of blackouts. It
is also expected to eventually result in a pan-Arab
power grid.
With cabling, substation construction
and advanced networking required in each of the
six countries, there is great business potential
for both regional and international companies to
win a share of the contracts, the first phase of
which will be announced in September this year.
One of the many companies tendering
for work related to the project is ABB, the Zurich-based
international power and automation technology specialist.
Already anticipating its turnover in the UAE to
top US$150 million this year, ABB has been heavily
involved in a number of high profile projects, building
substations for projects including The Palm Jumeirah
(at a cost of US$30 million).
"The MENA region is one of the largest
markets anywhere in the world for energy related
products and services" said Sarah Woodbridge, Exhibition
Director, Middle East Electricity Exhibition. "The
growth of the industry here far exceeds global norms
- Iran, for example, has grown its power generation
output by 53% in the last eight years - and many
international companies are therefore establishing
and expanding their regional presence to compete
for the many highly valuable contracts that are
announced on a regular basis".
ABB is a typical example - "With the
MENA region accounting for 30% (US$1.5 billion)
of the group's global turnover, Dubai has been developed
as a business hub for the region" said Naji Jreijiri,
ABB's Head of Automation Products. "We invested
US$3 million on refurbishing our Dubai facility
which now features a 7,000 sq m workshop and 2,500
sq m of offices and acts as the central base for
our 300 employees in the UAE".
A stream of new developments, and
the enthusiastic adoption of innovative technologies
is further stimulating the growth of the energy
industry - one of these, Bahrain's US$225 million
"Green City", has been environmentally designed
and ecologically oriented, and will have its own
desalination and power plants using solar energy,
plus a waste water treatment plant and sewerage
system based on pressurised air and suction technology.
Solar, wind and water power, alongside
natural gas, are also being seriously considered
as alternative energy sources that can generate
income in Saudi Arabia, with natural gas topping
the list as an eventual replacement for petrol.
Middle East Electricity, internationally
acknowledged as one of the world's most important
trade events of its kind, has been specifically
developed to support the development of regional
energy infrastructures and stimulate the energy
industry. Acting both as a showcase for the global
energy industry and a platform that allows the key
decision makers from around the region to see, first
hand, the latest products and services that the
world leaders have to offer.
"The exponential growth in energy
demand throughout the region means that governments
are heavily committed to undertake essential infrastructural
development" added Woodbridge. "This is reflected
right across the industry, with sectors such as
cabling experiencing unparalleled demand - evidence
of this is the fact that Ducab (Dubai Cable Company)
is projecting a sales turnover of US$543 million
by 2010 and has opened a new factory in Abu Dhabi,
expanding its manufacturing capacity by 60%."
Already over 90% sold out, Middle
East Electricity, which takes place at Dubai's International
Exhibition Centre from February 5-8, 2006, has already
attracted the leading names from the global industry,
with ABB, Eaton Electric, Ducab, LS Group, Lucy
Switchgear, Danway, GE Energy, Perkins, Matsushita/Panasonic,
Al Babtain, Cummins, Philips and Osram amongst the
exhibiting companies. The show will also feature
additional country groups making a total of 18 already
confirmed.
The event comprehensively covers the
energy industry, with specific sections for Lighting
(already virtually sold out), Gas, Power Generation
and New & Renewable Energy, reinforcing its position
as the power behind the Middle East energy industry.