Gulf Construction Online - UK firms make further gains

Britain & the Middle East

Novelli and Ankers at the UK pavilion at the Big 5 show last year.

UK firms make further gains

Having gained a reputation for quality in all spheres of the construction sector – right from designing to manufacture of ironmongery – British firms continue to penetrate the market and avail of the ample opportunities the region has to offer.

01 June 2005

A Booming construction market and the advantage of having traditionally strong links with the Middle East continues to spell success for British firms who have already maintained a stronghold on the market as well for those new companies venturing into the region to explore the abounding business opportunities on offer.

British firms have gained a foothold on various segments of the construction industry right from providing highly specialised designing and engineering skills to the supply of an array of high-quality products and services, ranging from adhesives and fixings to furniture and fittings and waterproofing products to roofing membranes.

Statistics
Trade statistics recently released by the UK’s Department of Trade and Industry show that combined UK exports to the UAE rose by 30 per cent in 2004 to Dh18.9 billion (£2.7 billion – $5.15 billion), making the UAE the UK's largest export market in the Middle East. The UAE also moved up to 13th place globally from 17th in 2003, ahead of the likes of China, Hong Kong, India and Australia. UK exports to the UAE account for almost 50 per cent of all the region’s exports to the GCC.
“It is very encouraging that British companies are taking advantage of the tremendous opportunities in Dubai,” says British Consul General, John Hawkins. 'But we will not rest on our laurels. Dubai is an open market and the competition is tough. We will be working harder than ever in 2005 to encourage more British companies, especially small and medium-sized enterprises (SMEs) to come to Dubai, to invest here and to use Dubai as a base from which to target the markets of the region.”
In terms of construction products, UK exports to the Middle East were worth £498.09 million last year, with Dubai being the largest market by far at £98.713 million, up 19 per cent from £83.217 million in 2003 (see table).
“The boom in Dubai has had a ripple effect throughout the region which is offering immense opportunities for British companies. The market is growing stronger for British companies and Dubai, in particular, continues to offer excellent opportunities for business,” says Michael Ankers, chief executive of the Construction Products Association (CPA) of the UK.
According to him, British companies have continued to enjoy a strong presence in the UAE market for three main reasons: Strong historical ties maintained over decades; the use of British Standards (BS), which are well recognised and used in specifications in the emirate; and the English language which is well understood and spoken in the construction circles.

Exhibitions
The CPA assists UK companies to export their products in overseas markets.
“While assisting its members in their export activities, CPA also act as a sponsor of UK Trade & Investment-funded exhibitions worldwide and the Big 5 is the largest of such events on our calendar' he says.
The CPA – which is working alongside its partner Building Exhibitions Management (BEM) – expects to break the records it set last year when it organised the largest-ever UK pavilion at the Big 5.
“We anticipate to bring in 70 UK companies to the next Big 5 show, surpassing last year's record of 66 firms. We have booked an exhibition space of 12,000 sq m,” says Simona Novelli, senior account director at BEM.
“The response we have received from UK companies wishing to exhibit at the show is overwhelming. UK companies are determined to have a major presence in this vital export market and this is reflected in the way our group has grown over the past four years,” says Novelli.
The organisations are working closely with the British Embassy in the UAE to promote UK trade and investment. New companies looking to participate at the show can avail of grants provided by the UK Trade and Investment (UKTI).
“We expect to see some 30 to 35 new companies participating at the Big 5 show this year,” says Ankers.
The CPA/BEM are also leading a delegation to Project Qatar, set to be staged in Doha from September 18 to 21.
“We will also organise a UK pavilion at the GulfBid show, organised jointly by Al Hilal and dmg world media Dubai, which will be held in Bahrain next year (May 16 to 18),” adds Novelli.
The UK construction industry provides a tenth of the UK’s gross domestic product, and employs 1.4 million people. UK designers, civil engineers, contractors and component and product manufacturers have a worldwide reputation for working overseas. The UK construction industry is one of the strongest in the world, with output ranked in the global top ten.