Developers beware

Building mania in the desert: German industry benefits, using local and domestic platforms to give an impressive demonstration of its efficiency.

So far, the plan pursued by Sheikh Mohammed bin Rashid al Maktoum and his visionary father to transform Dubai, only 40 years ago a sleepy desert backwoods without asphalted roads and running water, into a hypermodern financial, commercial and tourist centre seems to be working out. The billions earned from oil and investments keep the vast building project up and running. With construction spending of US$ 120 billion in Dubai alone, the region is currently experiencing an incredible construction boom. As a strategic counterweight to declining oil deposits, the highest buildings on earth are being put up, the biggest shopping malls, artificial islands, entire towns, hotel resorts, golf courses, roads, ports and free trade zones with the focus on Dubai and Abu Dhabi. This has been going on for some years now, given that the black gold that showered riches on the sheikhdoms will be exhausted in 15 years time at the latest. By then the region is to be made as attractive as possible for international tourism, congress-, trade fair- and business travellers. Meanwhile, the Big 5 Show organised by dmg world media Dubai Ltd has risen to the major marketplace for the building industry. It went on display last year from November 16 to 20 with 38,535 (+ 14 %) visitors, 16,700 of them from abroad, and 1,886 exhibition stands (+ 15 %), at which 2,477 companies (+ 15 %) from 58 countries were represented. This makes it the biggest construction trade fair in the Middle East. The product range comprises Building & Construction, Water Technology & Environment, Air Conditioning, Cleaning & Maintenance, Glass & Metal, Bathrooms & Ceramics, and Marble & Machinery.
It addresses mainly visitors from the Gulf region. Almost 65 % of them come from the United Arab Emirates and 13 % from Saudi Arabia and the other Gulf States. Also heavily represented are visitor groups from Egypt, India, Iran, Africa and Europe.
But the size of the exhibition and its variety are also its sore spot. People seeking concentrated and specialised products and systems in individual sectors or technologies at the Big 5 are in for a disappointment," Germany's VDKF confederation of air conditioning firms reports. Having reached the limits of hall capacity, at 35,000 m2, a comprehensive picture of all construction sectors is provided, but a more in-depth market overview of individual segments is not possible. So has the time come for stand-alone special fairs? Boris Abadjieff from the VDMA fittings association: "On the one hand the size of the exhibition and increasing industrial development in the United Arab Emirates suggest that the individual sections of the Big 5 Show could go it alone in future. On the other, roughly one in every four visitors is a trader or importer. This visitor group appreciates the variety of construction-related products on show. Given that the exhibition concept is based on national pavilions and exhibitors and visitors have given the fair good marks so far, splitting it up into part-exhibitions won't be easy."
"The exhibition's development does indeed speak for itself. In 2003 it was booked by about 1,730 exhibitors from 48 countries. By 2005 that number had already risen to 2,477 companies from 58 countries. More than 30,000 visitors are registered at each edition of the Big 5," says Harald Müller, chief executive officer of IMAG - Internationaler Messe- und Ausstellungsdienst GmbH, Munich. "dmg deserves nothing but respect for this event. The visitors from the Arab region and neighbouring countries apparently like the omnium gatherum just as it is. And to date a certain lack of space has also argued against splitting" Müller explains. For climatic reasons fairs in Dubai can be held from October to April. During that time the World Trade Center is well occupied. Relief is expected from the projected Exhibitions City (see p. 25).
As many German companies as possible want to be on board the gigantic construction projects in the desert. As the endorsing technical organisation, the VDMA, the association represents the Engineering Industry in Europe, is hosting a joint stand in association with IMAG at the 2006 Big 5 Show. In 2003, 124 German exhibitors travelled out, by 2005 there were already 234. "And from October 28 to November 1 this year the German pavilion will be the biggest international one at the construction fair with more than 250 participants and roughly 4,200 m2 of exhibition space," Müller says. Some of those that don't make it out to the hot construction region this year to showcase their products and services can still cut themselves a piece of the big cake - at the bauma 2007 in Munich. Then the Arabian Peninsula will be the partner region of the International Trade Fair for Construction Machinery, Building Material Machines and Mining Machines taking place next year from April 23 to 29. "The partner region concept was initiated by the VDMA, which also endorses bauma, in 2001 at a time when demand for construction machinery in South America was immense. Since the concept proved successful, it was replicated in 2004 with the CIS states. The new partner region for 2007 is the Arabian Peninsula, concentrating on the United Arab Emirates and Saudi Arabia as the biggest countries in that region," says Eugen Egentenmeir, a member of the management of Messe München GmbH. The timing seems ideal, with VDMA statistics showing a more than fourfold increase in German exports of construction machinery to the region between 2000 and 2005. In absolute figures, the highest growth rates are registered in Saudi Arabia: over the same period deliveries of construction machinery and building material machines from Germany to Saudi Arabia rose sixfold. And they continue to climb, which is why numerous delegations of high-ranking businesspeople from the Arabian Peninsula are expected to Munich for the bauma 2007, where they will be able to see for themselves the state-of-the-art mechanical engineering called for by projects like The Palm, Burj Dubai, the World et cetera. Ordering is expected to be brisk.

m+a report Nr.3 / 2006 vom 28.04.2006
m+a report vom 28. April 2006