WIRES AND CABLES KHALEEJ TIMES ADVERTISING SUPPLEMENT
Robust connections The regional wires and cables market is projected to steer ahead after a lull Mitchelle D’Souza In news that could boost market sentiment, there has been a consistent flow of investments toward underground cables and the
extension of renewable energy. The demand for wires and cables in the Middle East region is forecasted to surge due to various factors like government initiatives and strategic investments towards the advancement of the market, and development and improvement of smart cities and the rapid construction of commercial buildings. According to the MarkNtel Advisors’ research report, GCC Wires and Cables Market Analysis,
the market is likely to grow at a Compound annual growth rate (CAGR) of 50 per cent during the forecast period of 2021-26. The Covid-19 pandemic negatively impacted the GCC region, causing supply chain disruptions in the real estate sector. That said, it has not been all doom and gloom. There are encouraging signs of recovery in 2021. Most forecasts agree that there will be a positive increase in demand this year compared to 2020.
Middle East power and cables sector to witness climb While the region’s power sector was negatively impacted by the Covid-19 pandemic since 2020, future prospects look bright with signs of recovery this year
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Speed Line Freight Forwarding LLC (SLFF) is among the leading companies providing international and local transportation logistics solutions to contractors involved in oil and gas, power and telecommunication projects in the Gulf and the Middle East. SLFF’s transport department offers a wide range of revolutionary transportation and logistics solutions to support its clients’ business needs managing any kind of cargo from the smallest most fragile to hazardous to oversized machinery and project cargo.
Support the customer in every step of the supply chain by offering customised logistics concepts from second part logistics to fourth party logistics is the company’s priority, and its logistics solutions professionally manage the transfer of products and information between the dealers and clients, allowing the stakeholders to concentrate on the core job. SLFF is ISO 9001:2015 / ISO 14001:2015 / OHSAS 45000:2018 certified.
Sustainably growing hand-in-hand with the UAE As one of the leading solution providers to prestigious projects, Haji Commercial Company meets the demands of myriad of industries within the country and GCC
Haji Commercial Company (HCC) operates through a strong business network throughout the UAE. The group is poised for further growth and diversification, whilst maintaining the highest degree of business ethics and customer care, both pre- and post-sales. A progressive company with over 30 years of proven track record, HCC is well organised to support its clientele as a single source for wide range of engineering designs and solutions with high-quality products and services. Its large warehousing facility with ample stock space ensures quickest possible deliveries of all its standard products. HCC’s personal involvement and commitment to service quality has helped it carve a niche with government and prestigious projects in the region as a reliable solution provider/supplier.
As an accredited ESCO-approved engineering, procurement and construction (EPC) company, HCC has diversified and expanded with consistent growth as a commercial solar solution provider (engineering design, supply, installation and commissioning), LED retrofits and sustainable energy solutions to reduce CO2 emissions, thus contributing to the UAE governments green energy and Dubai’s Integrated Energy Strategy for 2030. Unni Krishnan, CEO of HCC, said: “We started as a Ducab cables and wire distribution company 34 years ago, and have been the largest supplier of LED tunnel and street lightings in the region since 2009. Our journey and business strategies continues to bring in worldclass innovative and quality products and services in line with the UAE Government’s vision for a cleaner and sustainable future through solar, electricals and lighting solutions.”
Ashish Chaturvedy Looking at the trajectory of the power cables and wires market in the Middle East, one must first recognise that the global Covid-19 pandemic has significantly impacted all economies and all sectors. The power sector has been no exception. The pandemic has had a knock-on effect on the global cables and wires industry. Within the power sector, in particular, the marketplace was again impacted due to a pause in global energy projects and reduced capex on active projects. Global wire and cable consumption, by some estimates, shrank by about six to eight per cent in 2020 compared to the previous year. The GCC and the wider Middle East experienced a similar reduction in the wire and cable sector as per independent reports. That said, it has not been all
doom and gloom. There are encouraging signs of recovery already in 2021. Most forecasts agree that there will be a positive increase in demand this year compared to 2020. Major export markets like China and the United States are seeing a better than expected recovery in demand, which will benefit local manufacturers. Within the Middle East, there are also positive drivers for the power cables and wires market. In Q4 2020, business activity in the Arab world’s three largest economies returned to growth. Many government-backed power projects have continued despite the pandemic, particularly in the field of renewables. Many large-scale construction projects have also progressed in their planning and realisation. The recent project awarding by Qatar Gas in Q1 2021 of about $13 billion is one such example of encouraging news. Staying within the hydrocarbons sector, major the Abu Dhabi National Oil Company (Adnoc) projects like Hail and Ghasha, Belbazem, Dalma and Borouge IV Petrochemical Complex are under bid evaluation, and expected to be awarded in the near future. The recently announced Dubai 2040 Urban Master Plan is another example. Its vision for the creation of new urban developments and emphasis on resource efficiency and sustainability will likely spur a series of novel power projects, bolstering cable and wire demand in parallel. In markets like Saudi Arabia — the largest economy in the Middle East — the massive investment in mega tourism projects to the tune of over $800
billion will also require greenfield power infrastructure. Contract awards at Neom have been picking up steadily, and are expected to progress well into the next few quarters. As a UAE-based entity, we are also incredibly excited by the government’s latest ‘Operation 300bn’ national industrial strategy. This strategy aims to make the industrial sector the main driver of the UAE’s economy, contributing Dh300 billion to the GDP by 2031, more than doubling its current contribution. Sustainable development is among the strategy’s targets. That includes plans to increase the in-country value through refining and supporting local products on a global level. To best capture the potential of our industry’s recovery, manufacturers must first and foremost remember to stay human-centric. That means taking care of employees and really focusing on the customer experience they provide. Demonstrating the true value of cable and wire offerings is also essential, particularly the benefits of high-quality, certified products versus the cheaper but much less reliable alternatives. Last but not least, we must remember that we are all part of a wider value chain. This extends from materials sourcing to standards and policy benchmarking. With these priorities in mind and an improving macro-economic climate, the Middle East’s power cables and wiring market can make substantial gains in the year ahead. Ashish Chaturvedy is head of marketing at Ducab