The UAE and the wider region are on the cusp of a multi-billion investment spree by global industrial equipment sector players, especially from China, amidst the boom in construction and non-oil sector industries in countries like the UAE and Saudi Arabia, industry experts said.
While already established players in the region such as Chinese major HELI have kicked off aggressive expansions involving “significant investments”, a slew of fellow companies from the country and from the Western regions are said to be in the process of finalising massive expansions into the region, they said.
The growing demand for clean energy solutions in the UAE is acting as an added attraction for these companies who are looking to tap the “huge” market opportunities in the Gulf region for their electric and energy-efficient equipment and machineries.
“Over the next 2-3 years, our company plans to make significant, strategic investments in the region,” Guan Lei, General Manager of HELI Middle East FZCO, told Arabian Business.
“We also anticipate an influx of additional global players, particularly from China, in the UAE and the wider region [in the industrial equipment sector],” he said.
Lei said the company decided on the aggressive expansion plans as it sees significant growth potential in the UAE – and the MEA region – due to its expanding industrial and logistics sectors.
“HELI has already established itself as a leading player in 15 African countries, where it holds the leading position in forklift sales.
“We aim to further solidify our presence in the Middle East, with the goal of achieving a sizeable growth in market share in the next 3-5 years,” he said.
HELI’s investment plans will include its ongoing investment in infrastructure, with the company currently leasing between 6,000 and 8,000 square meters of space in the Middle East to expand its service capabilities and provide quicker, localized support, in line with its strategic goal of emerging as a key player in the material handling and logistics sectors in the region.
Management experts said entry of more global players will give a major fillip to the efforts of countries like the UAE and Saudi Arabia to boost their non-oil sector growth plans.
Expansion, entry of global players follows massive industrial sector growth in UAE, region
The expansion and entry plans of global industry equipment manufacturers come at a time when the Middle East market is seeing robust growth in several industrial sectors.
Segments such as forklift and similar equipment, currently estimated at approximately 25,000 units annually in the region, is projected to see additional demand for 7,500 units per year.
Lei said while the Chinese industrial equipment sector has seen significant growth and improvements in recent years, the domestic demand in China is currently outpacing production capacity.
“This creates an opportunity for these manufacturers to expand their reach into international markets, including the UAE and the wider Middle East region,” he said.
Management experts see the massive expansion and entry plans of global players, especially the Chinese majors, as part of a growing GCC-China axis for industrial growth plans.
“We see China and GCC increasingly collaborating across non-oil sectors,” Sandeep Ganediwalla, Dubai-based Partner at global consultancy RedSeer, told Arabian Business.
“This will have a significant impact on the sectors as the GCC countries will benefit from the deep tech know-how of China – especially important with the advent of AI, scale benefits, besides providing wider choice to consumers,” he said.
Experts also see the Middle East expansion and entry plans helping Chinese companies in a big way at a time when the Chinese economy is going through macro-economic challenges, and the heightened geo-political tensions with the West.
“On the other hand, the GCC is seeing macro tailwinds,” they said.
Aside from these considerations, the new product offering of the existing and the expected new Chinese and other global players, are expected to help Middle East companies be more competitive as their products incorporate several innovative features tailored to the unique demands of several industrial and logistics sectors, including beverage logistics, in the region.
Industry insiders said the new models also address the growing demand for sustainable and efficient material handling solutions in the region.
Global players keen to tap growing sustainability drive in the region
Sector experts said the massive expansion and entry plans of Chinese and other global players also follows the Middle East region’s growing focus on sustainable development across sectors.
These companies, with their growing portfolio of electric and energy-efficient material handling equipment, are keen to tap the region’s demand for clean energy solutions and reducing emissions, they said.
Besides, the state-of-the art equipment and machineries of these companies, boasting AI-powered advanced safety features, such as collision warnings and pedestrian detection to ensure a safer work environment, also help to lower operational costs for businesses in industries like logistics, food processing, and construction.
Lee said their company’s new models will provide businesses with efficient, sustainable, and cost-effective solutions.
“We are focused on advancing the adoption of new energy solutions, such as lithium battery and hydrogen-powered forklifts, which will play a key role in driving the region’s transition to more sustainable and socially responsible energy solutions,” he said.
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