(MENAFN- Khaleej Times) Developments across various industries such as the healthcare and hospitality industries will be a key factor in driving the demand for steel in the UAE, experts said at the Constructsteel Conference.
Held under the theme of 'The Future of Steel Construction 2030', the event brought together several experts to talk about the future of market segments, disruptors in the construction industry, as well as the steel and construction industries' continued potential to power sustainable development, long-term economic diversification and innovation in smart technology.
Dr. Matar Hamed Al Neyadi, Undersecretary in the Ministry of Energy and Industry UAE, noted that the steel and construction industries in the UAE have matured over the years, and that this is exemplified in the number of complex projects and mega-structures that have been successfully completed across the emirates.
"Looking ahead to 2030 and beyond, regional investments in hospitality, healthcare, education and infrastructure are likely to continue on an ever-growing scale. The steel and construction industries are well positioned to take advantage of this opportunity to continue contributing to the region's long-term economic prosperity and diversification. By investing in sustainable practices and innovative smart technology, the steel and construction industries will be able to maintain their historic momentum by offering unique products, services and solutions that will enable sustainable construction and the development of smart cities," he said.
According to the The World Steel Association's April 2019 Short Range Outlook, global steel demand will reach 1,735 Mt in 2019, an increase of 1.3 per cent over 2018. In 2020, demand is projected to grow by one per cent to reach 1,752 Mt. Steel demand in the emerging economies, excluding China, is expected to grow by 2.9 per cent and 4.6 per cent in 2019 and 2020 respectively.
Edwin Basson, director general of worldsteel, noted that, in 2019 and 2020, global steel demand was expected to continue to grow, but that growth rates would moderate in tandem with a slowing global economy. "In 2017, the steel industry sold $2.5 trillion worth of products and created $500 billion value added. For every $1 of value that is added by work within the steel industry itself, a further $2.50 of value-added activity is supported across other sectors of the global economy because of purchases of raw materials, goods, energy and services. This generates over $1.2 trillion of value added."
"Strong global population growth, increasing urbanization and the continued development of mega cities will continue to support the future growth of the steel and construction industries, despite pockets of declining demand currently being witnessed within certain markets," said Saeed Ghumran Al Remeithi, CEO of Emirates Steel. Speaking ahead of the conference, he had noted the slowing global demand for steel, but revealed that there are pockets of strong growth in demand, such as in the developing markets of Asia and India. Emirates Steel expects steel demand in the Arab world to rise by 1.2 per cent to 50 million tonnes in 2020, compared with a 2.6 per cent decline this year.
"As an industry, we have a great opportunity to work hand-in-hand with governments and international organisations to share best practices, enhance sustainability and develop cutting-edge smart technologies that will, for example, facilitate the construction of Zero Energy Buildings. This will allow the steel and construction industries to remain at the forefront of global economic growth for decades to come," he said.
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RohmaSadaqat
I am a reporter and sub-editor on the Business desk at Khaleej Times. I mainly cover and write articles on the UAE's retail, hospitality, travel, and tourism sectors.Originally from Lahore, I have been living in the UAE for more than 20 years. I graduated with a BA in Mass Communication, with a concentration in Journalism, and a double minor in History and International Studies from the American University of Sharjah.If you see me out and about on assignment in Dubai, feel free to stop me, say hello, and we can chat about the latest kitten videos on YouTube.
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