Cable Demand Grows As UAE Projects Turn To Local Suppliers After Conflict, Says Ducab
Charles Mellagui, the CEO of Ducab's cable business unit, said the company was not impacted by the war as there was not a single day that it stopped operations.
Recommended For You“Cable could not come easily inside the UAE. Therefore, we felt a pressure to produce and deliver our own customers,” he told Khaleej Times in an interview.
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The regional war caused many disruptions, including to shipping and logistics, which affected Ducab's export business. However, local demand slightly increased as many projects could not rely on outside businesses, giving Ducab an opportunity to step in.
Ducab, the UAE's leading cable manufacturers, supplies major projects in the country including Etihad Rail, DP Ports, and even Burj Khalifa. Founded in 1979, Ducab now provides cables, as well as wire and metal products through its subsidiaries, to over 75 countries.
The Ducab CEO was speaking on the sidelines of the 50th edition of Middle East Energy, a global energy event which opened on Tuesday. During the opening ceremony, the UAE minister of energy and infrastructure, Suhail Al Mazroue, said that this year proved to be resilient for the country's energy industry, despite the regional challenges, due to the diversification of energy sources.
Powering 50% of all UAE data centres
The cable manufacturer is also supplying more than 20 data centres, almost 50 per cent of all centres in the UAE. Data centres are a major driver of Ducab's business, Mellagui said, as demand for cables and energy requirement for these centres are also high.
The region's AI data centre market is projected to grow at a 28 per cent CAGR through 2030, according to Grand View Research, which is driven by rising demand for AI, cloud computing and smart city initiatives.
Mellagui said that the UAE's strategic investments in AI comes from the fact that the energy supplied to these centres is cheap, as it is produced domestically.“Data centre is strategic in UAE. Why? Because the energy is very competitive,” he said.“So those who produce data centres, like hyperscalers, when they think where to put the data centre, they are looking where is the cheap energy and where is the available energy.
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