Emirates Business reported that opening up of the Iranian and Iraqi markets could provide a much needed boost to the construction industry in the region.
According to experts participating in SteelFab 2009, many international companies planning to expand into the GCC region and Middle East are of the opinion that Iraqi reconstruction and access to the Iranian market could significantly improve business opportunities, despite a general slowdown across the GCC.
A few Italian companies participating in SteelFab 2009 said they are considering opening offices in the UAE to target opportunities in Iraq and Iran.
Mr Daniele Parmigiani director of Parmigiani Macchine from Italy said that he plans to set up an office in the Sharjah Free Zone. He added that "It all depends on the regional market. I am keen to find out about the opportunities in Iran and Iraq. These are emerging markets with great potential. If I find it feasible to do business with customers from these countries it would be worth setting up an office in the UAE.”
About 35 Italian firms are participating in the SteelFab under the umbrella of UCIMU Sistemi Per Produrre, the association of Italian manufacturers of machine tools, robots, automation systems and ancillary products. The Italian participation this year is 60% higher compared to 2008.
The region"s construction industry is expected to get a boost with US President Mr Barack Obama"s declared intent of winding down the war in Iraq and Afghanistan and his announcement of a massive USD 1 trillion economic stimulus package featuring smart grids, roads and bridges that will form the core of a rehabilitation program for the two countries.
Mr Prathun George, owner of Shrawn Engineering, said that "Obama"s new rehabilitation program will create great opportunities for Indian engineering companies. We should be prepared to use Dubai as an entry point for steel and construction companies to supply materials."
Mr Davide Orsenigo of the marketing department, UCIMU, said that while Iraq offers great potential for business, several roadblocks and hindrances prevent companies from aggressively entering the Iranian market.
He also noted that "It is very difficult to even do banking transactions with Iranian companies. There is a big market for machines and tools in Iran. SteelFab this year has been satisfactory. We have had a few enquiries from potential customers. The situation overall is a bit gloomy and, naturally, we can see the effect here as well. There is a general slowdown in the machinery sector. We will have to wait for another 6 months to understand what is happening."
For the first time at SteelFab, the latest high tech equipment such as automatic beam welding lines, resistance welding machines and laser punching machines are being featured. There is also a special display area for CNC metal cutting machine tools. Among the machines displayed are shears, press brakes, punch presses, CNC profile cutting, beveling, grinding, oxy-fuel cutting, water-jet cutting, plate drilling and cutting, beam drilling and sawing, blasting, painting, cut to length, slit to length, welding displays and stud welding machines.