It is anticipated that steel consumption in the UAE will grow at a CAGR of 8% between 2016-20
UAE - The demand for steel products across the UAE and the GCC region is set to continue to increase, driven by a strong pipeline of construction projects as the country prepares itself for the Expo 2020 Dubai event, experts at SteelFab 2019 said.
The 15th edition of the event was inaugurated by Sheikh Khalid bin Abdullah Al Qasimi, Chairman of the Sharjah Ports and Customs Department, and brings together more than 300 companies that represent some of the world's leading manufacturers and suppliers.
Exhibitors will showcase the latest innovations belonging to more than 1,000 brands that specialise in welding, cutting, grinding, pipe and tube machinery, and other technologies and solutions. Experts at the event will also highlight the latest innovative solutions that will solve the daily challenges faced by companies and factories, such as high-capacity systems for handling panels and rebar systems.
According to the World Steel Association, global steel demand was set to increase 1.8 per cent year-on-year in 2018. The association has also estimated that demand will grow 0.7 per cent to 1.63 billion tonnes in 2019, compared to 2018.
Experts said that steel production is fairly fragmented across the GCC, and that the UAE's demand for steel and steel products has made it one of the largest consumers in the GCC region. The region has continued to increase its investments in construction projects, mostly in preparations for mega events such as the World Expo 2020 in Dubai and the Fifa World Cup 2022 in Qatar. It is anticipated that steel consumption in the UAE will grow at a CAGR of eight per cent between 2016-20.
Abdullah Sultan Al Owais, chairman of Sharjah Chamber of Commerce and Industry, emphasised the importance of SteelFab as an annual forum for the global and regional metal working industry to discover the latest products and technologies. He also noted that the event is in line with the UAE's plans to raise the industry's contribution to its GDP from its current rate of 14 per cent to 20 per cent by 2021, especially since there are expectations that the demand for iron and steel products will continue to increase due to spending in the infrastructure sectors of the country.
According to Fitch Solutions, the Mena construction industry is estimated to grow at an average rate of 7.5 per cent year-on-year basis in 2019 and will expand at an average rate of 6.8 per cent every year until 2022. Meanwhile, the UAE currently boasts a construction pipeline of 11,334 projects valued at $272.7 billion as of November-end 2018, according to construction intelligence platform BNC Network.
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