Germany: Better by design

"According to the German consulate, German trade with the UAE is on an equal footing with Hong Kong and Singapore."

Germany has enjoyed diplomatic relations with the UAE since 1972 and these were strengthened in 2004 with a strategic partnership, which reflected the intentions of the two governments to step-up political and trade relations.

Throughout the Middle East, the UAE is Germany's leading economic partner, with German exports totalling US $5.7 billion (AED21 billion) in 2005 - a figure that grew by 25% in 2006. According to the German consulate, German trade with the UAE is on an equal footing with Hong Kong and Singapore.

As a result, Europe's industrial powerhouse continues to remain one of the region's biggest players as it delivers at both ends of the spectrum.

This reciprocal relationship is demonstrated in the interview with Pal Molnar, director of trade fairs and legal services at the German Trade Commission in Dubai, who discusses two of the world's biggest construction trade fairs - Bau and Bauma - with Construction Week and looks at how Germany can assist the UAE in running successful trade shows to maximise economic opportunities.

Over the past 12 months, German engineering has remained evident on Dubai's large-scale developments. In Dubai Sports City, three out of the four showcase stadia are being developed by German contractors. With experience gained from hosting the FIFA World Cup in the summer of 2006, it is little wonder that names such as Max Boegl and Alpine Bau Deutschland are at the heart of a 60,000 multi-purpose stadium, 30,000-seat cricket stadium and 10,000-seat multi-purpose indoor stadium.

"We have built many of them [stadia] in Germany because of the World Cup, so we have good experience in it," says Franze-Bernhard Schilberg, project manager for Max Boegl, who is working on the multi-purpose indoor arena.

It is also apparent that, as well as playing to their strengths, German firms are becoming more discerning with regards to which contracts they will accept. Dr Mahmoud El Khafif, regional manager - Gulf States, Bilfinger Berger, explains: "We do not enter tenders where it is just price driven - we need a certain project size, category and sophistication to consider it."

This level of sophistication has led to a number of firms highlighting the need for establishing uniform standards across the country, which would eliminate delays and ensure across the board compliance of material quality.

At the same time, solid experience of dealing with the local industry, from small start-ups to established giants of the German construction sector, is invaluable too.

"It is very important to respect people and, in particular, the culture of the UAE. Good performances for customers can only be achieved when there is a skilled and motivated workforce and good working relationships are established," says Peter F Hammer, managing director, Bauer Equipment Gulf.

One such giant, Siemens, is set to further boost the region's electrical infrastructure, following a $100 million contract win for the H Station (phase three) expansion in Dubai. This will see the company build a 400kV/132kV substation in Al Awir, the largest of its kind that the firm has undertaken worldwide.

While the major players in the construction market continue to make themselves heard, smaller German firms are also looking to branch out by targeting niche Middle East markets.

This was emphasised during The Big 5 exhibition held at the end of last year, which is the UAE's biggest showcase for German prowess and annually demonstrates the extent of influence German companies have on the local market.

German concrete cooling specialist KTI has benefited from the boom in residential construction, with a 50% increase in orders in Dubai over the last year, according to design and marketing engineer Peter Kulczyki. The company has already supplied its plants to several of the largest construction sites in the region, including Dubai Festival City, Jumeirah Beach Residence and the Emirates Palace Hotel in Abu Dhabi.

"We use chilled water mixed with flaked ice to lower the concrete temperature," he says. In Dubai, the maximum placement temperature is 32°C, which can require around 80kg of ice per 1m3 of concrete. KTI provides modular cooling systems, which can be moved swiftly from site to site.

The burgeoning area of quake-resistant technology is also proving attractive with German firms. According to Abdo Zarife, director of Mupro Middle East, buildings that do not have adequate systems in place for controlling vibration in their main support network could be vulnerable to the affects of an earthquake.

"If there was an earthquake in Dubai for example, and the support system fails, then all the services, such as piping and ducting, will fail and collapse," he says.

Mupro develops and manufactures pipe support systems for all areas of building construction and for industrial installations using structure-borne vibration insulation and vibration control technologies. While tremors are rare, seismic activity is not far away - a tremor measuring 4.0 on the Richter scale was felt in Ras Al Khaimah and Fujairah in early March. "New buildings are being taken care of for seismic impact, such as the Burj Dubai, but this kind of consideration is only just starting to happen," adds Zarife.

And in line with a growing trend, German firms are also applying their skills to environmental sustainability. Kessel has recently introduced its environmental wastewater treatment device to the Middle East market as demand in the market grew in line with a stricter global line on water regulations. The Inno-Clean septic system provides decentralised treatment of domestic water. It operates using a sequencing batch reactor system and uses a biological treatment procedure that reduces the sludge and nitrates in wastewater. The system comprises of one or two tanks, depending on the size of property.

It is clear that Germany is astutely playing to its strengths within the emirate and, as long as the relationship remains strong, both sides will reap dividends in terms of finance and knowledge sharing, which can only improve as the Middle East economy continues to grow.

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