Here are three key themes worth exploring for HVAC companies planning their strategy for the region: The first is the resurgence of Dubai, the second is sustainable construction, and the third is KSA’s ambition to be a leader in all spheres in the years ahead. We’ll touch upon each of these briefly along with some key stats.
The Resurgence of Dubai
The sharp decline in the size of the Dubai construction market post the expo was expected but so was an announcement of what would come next. The pandemic and global instability have delayed some of these plans, but Dubai is back and firing on all cylinders. In the last 5 months, there have been 149 contract awards worth USD 8.5 billion in Dubai alone and there are several more expected to follow.
Add to this an increase in activity in Abu Dhabi and cornerstone projects such as the USD 3.9 billion Wynn Resort in Ras Al Khaimah and you have the makings of a new construction boom.
Contract Awards - UAE:
Sustainable Construction
With COP 28 around the corner, there is a fresh impetus to drive sustainability in construction.
While the big move is the energy transition from fossil fuels to renewable sources, the
construction sector is a major contributor to carbon emissions and has a key role to play. While there is growing interest in LEED certification and other standards that would tout the sustainability of the project, there are also more grassroots-level discussions underway to find practical solutions to save energy and water consumed by HVAC systems, which are one of the biggest energy consumers.
This is an opportune time to connect directly with project owners who are now increasingly open to listening to ideas and learning about products that would reduce the lifecycle cost of the projects that they are creating.
KSA: A whiteboard for new solutions
KSA does not want to be fantastical just in terms of tourism, it wants to be a market leader in several spheres - the foremost of these is construction given the hundreds of billions of dollars that the country is committing to its giga-projects. While announcements of major projects have continued this year, there has also been an uptick in contract awards which will translate into tangible and significant work for HVAC suppliers in 2024 and beyond.
Awards & Announcements - Saudi Arabia:
KSA’s ambition to lead lends itself well as a virgin test site for every supplier who has a magical new transformative solution that the market was not willing to pay for in the past and for commoditized products it has the volume to offer through the massive developments that are underways through the housing program being orchestrated by Roshn.