Gulf Construction Online - UKTI helps build trade in the Gulf

Britain & the Mideast

This year’s Britain in the Region will be held to coincide with the exhibition, says Taylor (below).

UKTI helps build trade in the Gulf

Paul Taylor, head of UK Trade & Investment’s* Middle East team, looks at opportunities in the GCC and how the organisation supports British construction firms.

01 June 2011

EVEN though unrest may have hit some of the GCC states, the UK believes that huge opportunities remain and affirms that the only sure route to success is to show continued commitment to these markets.

During this period, it is more important than ever that British companies take a longer-term perspective.

Trade between the UK and the Gulf is already on a par with India and China combined and is increasing rapidly.

This has been reflected in the latest data on exports of goods which, for 2010, reached nearly £12 billion ($19.54 billion), an increase of 12 per cent on 2009. Exports of services add billions more.

The UK’s exports of construction goods to Saudi Arabia alone in 2010 stood at £77.7 million ($126.48 million).
In the Gulf, the vision for the future includes a series of multi-billion-dollar investment strategies.

For example, over the coming years in Qatar alone, $140 billion in key infrastructure projects are planned or under way, with the Fifa World Cup 2022 championships requiring an estimated $57 billion in infrastructure development, including stadium construction, railways, roads and accommodation.

In Kuwait, some 24 projects worth over $24 billion are in various stages of preparation, including a new metro system and rail network.

In Oman, increased government spending has produced an upturn in construction, with more than $30 billion in civil, industrial, transport, oil and gas, petrochemicals and tourism projects planned.

Hence, UK construction firms, consultants and architects were understandably heavily represented on the business delegation of UK Prime Minister David Cameron’s visit to the Gulf last February.

Very large-scale, high-value international projects of this kind offer enormous opportunities for UK companies of all sizes. But, although the country has a fine track record in winning contracts and supply chain opportunities, there is a perception that the UK has not been as successful at winning major projects as certain of its competitors. To counter this, the UK Trade & Investment (UKTI) is establishing a High-value Opportunities programme, which involves forming expert teams to target key projects; strengthening relationships with foreign governments and foreign contractors; and building strong relationships with UK suppliers and consortia in order to help them to win.

Among the key opportunities prioritised in the Gulf are rail projects in the UAE, Qatar, Saudi Arabia and Oman; the development of Saadiyat Island in Abu Dhabi; Bubiyan Island in Kuwait; Musheirib project in Qatar; Kuwait metro system and airport re-development; the development of new schools and hospital infrastructure in Kuwait and Saudi Arabia; Fifa World Cup 2022 projects; the new Doha port; and Knowledge Economic City in Saudi Arabia.

The UK construction sector represents an annual output of around £107 billion ($173.6 billion) and comprises more than 300,000 companies. UK companies, with their high-end consulting, design and engineering capabilities stretching across many disciplines, have shown themselves to be strongly placed to address global trends and compete on a global stage. They have shown leadership in developing industrial processes that reduce costs, create safer working environments and reduce the use of energy, materials and resources.

Given the scale of the opportunities on offer, it is in this sector that UKTI feels its support is particularly crucial in helping to add value; access decision-makers; provide market intelligence; foster collaboration; pull through SMEs (small and medium enterprises) as part of potential supply chains; and help to position the UK as the global leader.

Over the course of this year, UKTI will be working in partnership to deliver a series of events aimed at drawing attention to key opportunities in the Gulf and linking British firms to key GCC contacts and decision-makers. As things stand, these include the Meed’s Qatar Infrastructure Projects 2011 in London on July 5 and 6, and Institutional Investor’s 2011 Kuwait Investment Forum in London in December.

Also lined up is UKTI’s annual Britain in the Region 2011 trade event in Dubai in November, timed to coincide with The Big 5 show, also in the emirate. Britain in the Region will build on the past two years’ events, which brought together hundreds of UK-based delegates and other UK companies and organisations already based in the Gulf, with UKTI managers from across the whole of the Middle East and North Africa (Mena) region.

The UK has a proud record in the Gulf in supporting the development of new infrastructure, the creation of knowledge-driven and greener economies, and the provision of education, healthcare and other essential services. And with favourable exchange rates and continuing pressures to keep project costs low, British companies are extremely well placed to couple their world-class reputations for quality with even more competitive prices to help them maximise the opportunities that exist across the GCC.

• The UKTI is the government organisation that helps UK-based companies succeed in international markets.