trailer world issue Two 2008

Rubrik Issue Two 2008 27 3 3 2 2 1 3 6 6 4 3 5 5 5/3 5 4 7 Persian Gulf Oman Saudi Arabia 100 km freeways motorways Abu Dhabi Dubai Umm al Qaiwain Ras Al Khaima Ajman Sharjah Fujaira Al Ain Dubai 6 Dubai The United Arab Emirates lie between Saudi Arabia and the Oman on the Persian Golf. The states of the UAE 1. Abu Dhabi 2. Dubai 3. Sharjah 4. Ras al-Khaimah 5. Fujairah 6. Ajman 7. Umm al-Qaiwain Oil production in million tonnes (2006) Oil resources in billion tonnes (2006) North America Europe Middle East UAE Oil production Refinery capacity 1000 250 500 750 100 50 75 100.38 465.6 1000.8 247.4 138.3 965.7 860.3 349.2 39.1 Oil production in million tonnes (2006) Oil resources in billion tonnes (2006) North America Europe Middle East UAE Oil production Refinery capacity 1000 250 500 750 100 25 50 75 27.06 2.12 12.85 100.38 465.6 1000.8 247.4 138.3 965.7 860.3 349.2 39.1 Oil production in million tonnes (2006) North America Europe Middle East UAE Oil production Refinery capacity 1000 250 500 750 465.6 1000.8 247.4 138.3 965.7 860.3 349.2 39.1 trial equipment, BPW has witnessed ﬁrst-hand the growth in the region, speciﬁcally the transport sec- tor. “The extremely high construction boom and numerous investments which are being done here create a solid demand for quality products from BPW,” says Hans-Peter Birkenbach, Area Sales Manager of Middle East for BPW. “We have very good contacts and business relations to all local trailer manufacturers here. We want to expand our market share while meeting the demands of our customers,” says Birkenbach Perhaps the most shocking thing about the projects is not their expenses or scale but their timetable. Dubai sets extremely aggressive com- pletion schedules. Maintaining breakneck speed is the contractor’s responsibility in Dubai, where buildings go up in two years when they general- ly should take three. The vital component in such quick completion times is the large pool of cheap labourers, able to staﬀ building sites 24 hours a day, seven days a week, making labour costs a fraction of those in Western markets. With excess liquidity in the market form record oil prices, investors have gravitated to Dubai’s real estate sector because it has gained a reputation for delivering rapid, gen- erous returns. Even amateurs can expect to see a return of 20 per cent on their money. Therefore construction should continue to surge in the com- ing years, as the Dubai government shows no signs of slowing down. The public sector will continue to be the leading client, though the private sector will become more involved, as projects like the ‘Water- front’ and ‘Dubailand’ plan to sell plots for private development. The looming threat will be a slow down caused by either a sudden loss of conﬁdence or a string of poor quality projects. However, as long as the construction continues to be underpinned by cash and not ﬁnanced by debt, market buoyancy should remain poised to continue. After all, Dubai’s un- precedented growth continually reminds us: if you build it, they will come! Continued growth in the construction industry

trailer world issue Two 2008

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