technical review middle east 3 2013

SERVING THE REGIONS BUSINESS SINCE 19849 4

Calendar- p8 Executive Strategy - p10 Communications & IT - p20 Saudi Energy- p42 Road Building - p56 Demolition - p60

USA: $16.50, United Kingdom 10 Vol 29/Issue Three 2013

Following decades of neglect and under-funding, importantinvestments are being made in Iraqs port infrastructure. See page 46

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Developments - p6Regional economic growth to recede

Power & Water - p28Genset market review

Market News - p16Technology adoption benefits Iraq

Logistics - p46Iraq invests in port refurbishment

Manufacturing - p24Emirates Steel expands portfolio

Construction - p68Project Qatar

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Technical Review Middle East ISSN: 0267-5307

Technical Review Middle East - Issue Three 2013

Contents4

BUSINESS AND MANAGEMENTDevelopments/Calendar 6

Executive Strategy 10

Market News 12

COMMUNICATIONS & ITInformation Management 20Big benefits in cost reduction and risk management await those who take a

holistic approach to information management.

MANUFACTURINGProfile 24How Emirates Steel reduced the need for imports by adding to its product

portfolio.

POWER & WATERAnalysis 28Limited production of gensets in the region means demand is largely being met

through imports.

Developments 36The latest power news from around the region.

Saudi Energy 42More than US$35bn was invested in Saudi power projects last year.

LOGISTICSPort Facilities 46After years of neglect and under-funding, important investments are being made

in Iraqs port infrastructure.

CONSTRUCTIONSteel 54Passive fire protection for steel structures is available from Wacker Chemie.

Road Building 56Road builders look to the Middle East for the latest developments.

Demolition 60Prospects for demolition contractors in the regions fast-growing cities are getting

better every year.

Compressors 66Avoidance of system weaknesses is essential if an uninterrupted supply of

compressed air is to be achieved.

Project Qatar 68This is an event that attracts a lot of international interest, not only because of

Qatars gas earnings, but the successful soccer bid as well.

ARABIC SECTIONDevelopments 4

Construction 9

THE MIDDLE EAST is currently the worlds third largest importerof generating plant and accounts for 19 per cent of globalgenset trade after the Far East at 31 per cent and Europe 20 percent. With limited production facilities in the region, apart fromthose in Lebanon, demand is largely met by imports fromEurope, Asia and North America. Lebanon has grown inimportance as a supplier to both the Middle East and Africa inrecent years. Although the domestic market is reasonablysmall and valued at around US$95mn, Lebanon is a majorproducer and exporter to the markets of the Middle East andAfrica. In 2012 it is expected, once final data is available, thatLebanese manufacturers will have exported at least 15,000generating sets to these markets. However, due to theslowdown in the international generating set trade during thelast quarter of 2012, and the fact that only three regionalmarkets - the Middle East, Far East and South America areshowing any signs of growth, it is probable that 2013 will be ayear of zero growth.

At Technical Review we always welcome readers comments to [email protected]

CONTENTS EDITORS NOTE

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Developments6

LIBYAS ECONOMY MINISTER expects growth of three per cent thisyear, driven by a resurgence in oil production achieved despitesecurity so precarious that government departments like his mustbe protected by pickup trucks bristling with weapons.

The OPEC member restored pre-war oil output levels of around1.6mn barrels per day (bpd) faster than expected after the 2011armed uprising that ousted Muammar Qaddafi brought flows to avirtual standstill.

The revival of oil production allowed Libya to record economicgrowth of over 100 percent last year.

We expect growth of three per cent this year, mainly driven byoil, Economy Minister Mustafa Abofanas said.

In order to reduce Libyas reliance on volatile oil revenues,Abofonas said his ministry was also looking at boosting exports.

There are many producers who are interested in exportingdates, olives and olive oil. We are also looking at developingtourism. But it is difficult to give a percentage of how much thiswill represent in terms of Libyan income in the future as we stillneed to do our research and this takes time.

He added: This year is different from 2012. Libya is currentlyproducing 1.5mn bpd. There are other sectors such as industryand agriculture which sustained damage during the fighting andwe hope they can resume properly again soon.

His forecast is more conservative than others. Last year, theInternational Monetary Fund said Libyas economy was poised togrow 17 per cent in 2013 and should average growth of seven percent annually between 2014 and 2017.

IRAN'S ECONOMYCONTRACTED by 1.9 percent in 2012 and is expectedto shrink by 1.3 per cent thisyear as it reels from theimpact of Western sanctions,the International MonetaryFund said recently. The economyof the Islamic republic is,however, forecast to grownext year by 1.1 per cent, theIMF said in its annual WorldEconomic Outlook.The IMF said the"macroeconomic environmentis likely to remain difficult,given the sharp depreciationof the currency and adverseexternal conditions, whichwould sustain inflation atrelatively high levels."A Western ban on Iranian oilexports, which came intoeffect in July, hit thecountry's economy badly.

THE INTERNATIONAL MONETARY Fund(IMF) has lowered its outlook for the worldeconomy this year, predicting thatgovernment spending cuts will slow USgrowth and keep the euro currencyalliance in recession.

The global lending organization cutits forecast for global growth to 3.3 percent this year, down from its forecast inJanuary of 3.5 per cent. It didnt alter itsprediction of four per cent globalgrowth in 2014.

As a consequence, economic growth in

Middle East and North Africa (MENA) oil-exporting countries is expected to fall to3.25 per cent this year due to relativelyweak crude demand, after expanding byalmost 5.7 per cent last year, the IMF saidin its latest annual World EconomicOutlook report.

However, oil-importing MENA countrieswill experience healthier growth of 2.7 percent in 2013 compared with 1.9 per cent in2012, though this remains weighed downby political uncertainty, decreased tradewith Europe and high commodity prices.

For MENA oil exporters, 2012 was a yearof robust growth, which reached about5.75 per cent, the IMF said.

Saudi Arabias economy will see a dropin growth from 6.8 per cent in 2012 to 4.4per cent in 2013. The UAE economy willalso see a slower rate of growth of 3.1 percent this year compared with 3.9 per centin 2012. Kuwait is forecast to see a sharpdrop in growth from 5.1 per cent in 2012 to1.1 per cent this year, and Qatarsexpansion will decrease from 6.6 per centto 5.2 per cent.

GCC economic growth to recede: IMF

HIGH PUBLIC SPENDING due tostrong oil prices will ally withDubais recovery and safeinvestment to boost the UAEeconomy by around 3.3 per centin 2013 despite an expected fallin crude output, according to akey Saudi bank.

SAUDI ARABIA WILL continue topump funds into developmentprojects because of strong oilprices but growth in suchexpenditure is expected toslacken in the coming years, akey bank in the Kingdom said.Capital spending this year willremain high as several projectswhich were delayed in 2012 willbe implemented this year butgrowth in investments will beslow than in previous years,Saudi American Bank group(SAMBA) said in its monthlybulletin. SAMBA said it believedthe Saudi government mightdecide to keep spending high andfund any deficits that mightmaterialize by drawing downsavings, as it did in 2009.

BRIEFLY Iranian economyshrinks

Libya hopes to reduce dependence on oil




Calendar8

MAY 2013

6-9 Project Qatar DOHA www.projectqatar.com

7-9 GulfBID MANAMA www.gulfbidexhibition.com

21-22 Solar Mahgreb RABAT www.greenpowerconferences.com

26-29 Saudi Energy RIYADH www.saudi-energy.com

JUNE 2013

4-7 Project Lebanon BEIRUT www.projectlebanon.com

SEPTEMBER 2013

10-12 Materials Handling Middle East DUBAI www.materialshandlingme.com

16-18 The Big 5 Kuwait KUWAIT www.big5kuwait.com

OCTOBER 2013

28-31 Project Iraq ERBIL www.project-iraq.com

NOVEMBER 2013

4-7 Saudi Build/The PMV Series RIYADH www.saudibuild-expo.com

Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change

EXECUTIVES CALENDAR


Actual government spending in Qatar is likely to be aroundUS$66bn in 2013/14, leaving a budget surplus of US$8bn, oraround four per cent of GDP.We estimate that about 30 per cent of total expenditure willbe on capital projects, QNB Groups analysts remarked in astatement received here.Qatars Ministry of Economy and Finance recently released itsbudget for the fiscal year 2013/14, which runs from April 1 toMarch 31 of the following year.

An oil price assumption of US$65 per barrel was used, thesame as last year, and on this basis the ministry assumesrevenue of US$60bn, of which it plans to spend US$58bn.QNB Group, however, expects oil prices to be considerablyhigher, averaging US$107 per barrel for the fiscal period andleading to an estimated revenue of around US$74bn.This will leave room for significantly higher spending thanplanned.

Qatar heading for US$8 billion surplus

LEBANON HAS FILED an official request toreduce transit transport fees with Iraq andEgypt, the National News Agency reportedrecently, in a bid to cut export costs aftermajor land export routes were brought to ahalt by the ongoing violence inneighbouring Syria.

The request was submitted by the TripoliChamber of Commerce to IraqiAmbassador Omar Barzanji and EgyptianCommercial Attach Saad Cheikh in ameeting, the agency, quoting a statementfrom the Chamber, said.

It is important that we work togetherwith the Agriculture Ministry to service

agricultural exporters and help them meettheir demands, head of the ChamberTawfik Daboussi said.

He added that efforts by the Egyptianand Iraqi embassies had readied Lebanonand the two countries to reach agreementson alleviating fees and developing otherareas of co-operation.

The doors of the embassy are wideopen to business plans and projects byLebanese in all sectors, the Iraqiambassador said, adding that the embassyis working to facilitate visas for Lebanese,particularly businessmen and investors.

Recently roll-on-roll-off trucks have

started to ship Lebanese export trucksfrom Tripoli to destinations in Egypt andJordan after the situation on the roadsconnecting Lebanon through Syria becametoo dangerous.

Exporters, however, have complainedthat high shipping costs in addition totransit fees are narrowing their margins.They have called on the government tosubsidise shipment costs.

Syrian rebels have told Lebanese truckdrivers that the Masnaa crossing to Syriawould remain closed indefinitely, the headof Lebanons Farmers Association told TheDaily Star.

Lebanon seeks cut in transport levy


S03 TRME 3 2013 Exec Strategy_Layout 1 24/04/2013 16:40 Page 9

DDESPITE RECENT DIFFICULTIES inNorth Africa it is an importantmarket for Metito, which hasracked up over US$100mn of

project wins in the region.Metito has a long history of working inNorth Africa and its regional hub is basedout of Egypt. Technical Review heard fromKarim Madwar, Africa managing directorabout the vast opportunities that thewater business offers.

Metito's African operations are run out ofEgypt and Karim explained that the watermanagement company has a lot of activitiesin North Africa as the need for safe drinkingwater in the region is massive.

Demands in North Africa are muchhigher than the Gulf due to much biggerpopulations. We see massiveopportunities for desalination plants inNorth Africa as there is a growingrequirement for desalination, watertreatment and above all waste watertreatment," Madwar pointed out.

Project impasseKarim explained that the Arab Spring hashad a big impact on North African marketsand a negative effect on Metito's work,which is based around infrastructure toprovide water, waste water fuelling plantsfor the population and water management.

"Many of the projects that were startedbefore the Arab Spring have been put onhold due to the lack of funds or politicalwill," he added.

He cited two examples of major delays toimportant projects. One, in Egypt is in The6th of October City on the outskirts of Cairo.

"This plant was meant to becommissioned and in operation lastsummer buy I think it will take two more

summers at least," he noted.The other is in Libya where Metito was

assigned to build 30 water treatmentplants across 30 villages in the southknown as the Southern Villages. The dealwas contracted before the Arab Spring buthas been on hold for the last two years. We have started communicating with thenew Libyan government to resume ourwork, he said.

Wastewater growthDespite the challenges brought by theArab Spring, Madwar feels there aremassive opportunities for desalinationplants in North Africa as there is agrowing requirement for desalination,water treatment and above all,wastewater treatment.

"The biggest potential is inwastewater. Across the region over 80per cent of the population is not yetconnected to proper wastewatertreatment facilities," he commented.

Madwar mentioned that Metito wasbuilding many sewage treatment plants inEgypt and they will soon be awarded a bigplant contract in Algeria, worth US$65mn.Over the last few months Metito has wonor will be awarded a number ofdesalination plants projects in Egypt,Tunisia, Algeria and Mauritania worth inexcess of US$100mn.

He said, The total capacities of therecent awards of brackish or seawaterdesalination plants using reverse osmosisis 100,000 cu/m a day."

The largest plant will be built in Algeriain a town called Touggourt serving apopulation of around 200,000 people.The plant capacity is 35,000 cu/m a day.This contract was awarded a few monthsago and is now under execution. Metitoshould also be awarded another project inAlgeria in Tindouf. This will also be adesalination plant with a capacity of10,000 cu/m a day that can be increasedto 15,000 cu/m a day.

2013 has started more positively andMetito was awarded four contracts tobuild desalination plants in Tunisia."All these new desalination plant awardsin Algeria and Tunisia are to serve the ruralcommunities which did not have access tosafe and clean water, noted Madwar.The firm will also soon be awarded aproject for a seawater desalination plantwith a capacity of 21,000 cu/m a day inHurghada, Egypt.

Madwar finished by stating that, "Weare facing big problems due to the lack offunds and currency fluctuations; howeverthis is being offset by new project awardsand massive infrastructure requirementsin North Africa. So we are optimistic butwe are not there yet."


Executive Strategy 10

Technical Review heardfrom Metito about the vastopportunities fordesalination andwastewater treatmentplants across North Africa.

Wastewater projectsaplenty in North Africa

El Kureimat power station II 750 MW combined cycle project




Market News12

CUTTING SYSTEMS MANUFACTURER Hypertherm was inApril 2013 nominated for Integrons Customer Experienceaward in the category Most Recommended by Customers.Integrons Experience Awards recognise the best-performing companies in its surveys, nominating the topthree companies with the best results over 12 differentcategories.Theo Cornielje, European director at Hypertherm said,Focus on the customer is one of our core values so it isparticularly gratifying that we were nominated in thecategory Most Recommended by Customers. The results ofthe customer satisfaction survey are extremely importantfor us as they help us better understand where we cancontinue to focus our efforts; we are very proud that ourcustomers are so loyal.Hypertherm recently released the MAXPRO200, a 200-ampLongLife air and oxygen plasma system engineered forheavy-duty, high-capacity cutting and gouging. According tothe company, the LongLife technology and Air/Air andO2/Air cut quality enables operators to cut more parts perhour and minimise the need for secondary operations.Other features include a one-step interface and automaticgas control; optional quick disconnect torches; twohandheld and two mechanised torch options; advanceddiagnostics; consumable designs for fast cut speeds androbust production piercing; and LongLife, CoolFlow and

TrueFlow technology for long consumable life and a lowercost per part, Hypertherm said.Aaron Brandt, head of Hypertherms Mechanized Systemsadded, The MAXPRO200 is a true workhorse for companiesdemanding great cut quality along with high productivityand low operating costs. It is engineered to deliver superiorreliability in the most demanding productionenvironments.

Hypertherm nominated for Integron award

Hypertherms MAXPRO200


IN CONJUNCTION WITH the Dansk Teknologisk Institut,HawkeyePedershaab has created the Smartcast system, enablingusers to produce wet-cast manhole bases with a number ofchannels and diameters of up to 60 inches.

The Smartcast system mills channel-forming moulds out ofexpanded polystyrene (EPS) using a Kuka Industrial Robot andhuman-computer interaction (HCI). System features includedesign software; a milling robot; coating application; high-performance moulds; an EPS extraction/compacting system; andautomated or manual installations.

According to HawkeyePedershaab, the system offers a range ofbenefits including the specialised software, which enables theuser to input key variables in to the system, after which theresulting base design is sent electronically to the EPS grindingsystem. The design is then placed in a queue, ready for the robotoperator to initiate whenever they are ready.

Meanwhile, numerous flow channel possibilities are affordedby the six-axis industrial robot which is capable of grinding ablank of polystyrene into several configurations due to its high-speed spindle motor and specialised tooling, the companyclaims.

Other benefits include smooth flow channel surfaces, a quickand easy set-up procedure and locally available EPS,HawkeyePedershaab says.

The company says it is the world leader in providing innovativesolutions to manufacturers of concrete pipes, manholes, andother precast products.

From simple stand-alone machines to fully automated plantsincorporating the latest in electronics, robotics, and controltechnology, HawkeyePedershaab claims to provide a total familyof solutions.

Smartcast system offers benefits

SWISS INDUSTRIAL GROUP ABB is to buy solar energy firm Power-OneInc for about US$1bn, betting growth in emerging markets will revive asector ravaged by overcapacity and plunging demand in recession-hitEurope.

The worlds biggest supplier of industrial motors and power gridssaid it had agreed to pay US$6.35 per share in cash for Power-One, theworlds second-largest maker of solar inverters that allow solar powerto be fed into grids.

We consider the acquisition of Power-One as a smart strategicmove for ABB to broaden its solar product portfolio at the right time,Vontobel analysts said.

Peers like Germanys Siemens and Bosch recently ended venturesin the solar industry after oversupply, weak economies and a cut ingovernment subsidies triggered a collapse in demand for solar panelsand prices slumped, leading to a wave of insolvencies in the industry.

Germanys SMA Solar, the worlds biggest maker of solar inverters,recently reported a 58 per cent drop in 2012 operating earnings, sayingsustained lower prices from competitors could severely impair itsbusiness.

ABB, however, said falling prices for solar systems and risingelectricity costs meant solar panels were now a competitive source ofenergy.

Solar is long term the fastest growing renewable generationmarket in the world. ABB believes in this market, ABB Discrete andMotion head Ulrich Spiesshofer said in a company video.

He said ABB was buying in this market now because it saw a shift insolar energy demand towards emerging markets, such as China andthe Middle East.

Renewable energy is one of ABBs strategic priorities. It took a 35 percent stake in Germanys Novatec Solar in 2011.

ABB bets on solar power with US$1bn investment


S04 TRME 3 2013 Market News_Layout 1 24/04/2013 16:41 Page 13


Market News15


DIYAR OUTDOOR, IRAQ'Sleading outdoor billboardcompany, is expanding itsservices to neighbouringJordan. The move comesthrough a strategicpartnership with RafedBillboards in Jordan. DiyarOutdoor will start offeringclients the choice of outdoorbillboards networks in Iraqand Jordan.

Diyar Outdoor claims to bethe leading outdoorposter/billboard advertisingcompany in Iraq, serving the entire country.

Rafed Billboards is a Jordan-based company specialising in outdoor media across Jordansgovernorates and on Jordan's major highways. During its five-year history, Rafed Billboards hasserved an array of leading brands in Jordan that include telecom operators and FMCG brands.Pictures of some of these major campaigns can be seen at www.facebook.com/Rafed.Billboards

Nabil Hijazin, managing director at Diyar outdoor, says that this move follows our success in theIraqi market and to enrich our clients with more choices and options in key regional markets.

Right now, Diyar outdoor billboard networks are strategically available in 12 Iraqi major citiesreaching over 50 per cent of Iraq's total population.

"This partnership with Rafed Billboards will expand our offering to the number of Internationalclients and agencies we have been proudly serving since 2004", added Hijazin.

THE RESOLVE OF AluminiumBahrain (Alba) to consolidate itscommitment to the growing USaluminium market provided oneof the key motivations behind itsmembership of the AluminiumExtruders Council - the premierassociation for extrusioncompanies and suppliers in theUS. Alba's membership of thiscommunity of more than 100major North American extrusioncompanies will enable the rm toparticipate in the vibrantexchange of technical andcommercial information as wellas contribute its knowledge andexpertise in the production ofhigh quality value addedaluminium.

QATAR PRIMARY MATERIALSCompanys (QPMC) GabbroTerminal Operations surpassedhandling of aggregate cargo inexcess of 100,000 tonnes twice ina row within a 24-hour windowperiod in February, the companysaid in a press release.

BRIEFLYDiyar Iraq signs Jordan expansion deal



Market News16

ABU DHABI TERMINALS (ADT), themanager and operator of Abu Dhabisfour main commercial ports, announcedthat it has reached an agreement with aconsortium of shipping companiescomprising of OEL (Orient Express Lines),Simatech and X-Press Feeders, to start adirect service to facilitate trade betweenAbu Dhabis Khalifa Port and the ports ofMundra and Nhava Sheva (Mumbai) onthe West Coast of India.This service further strengthens themarket profile of Khalifa Port ContainerTerminal, ensuring Abu Dhabisimporters and exporters as well astranshipment customers receive fast anddirect connectivity to two of the largestimport/export hubs in India. saidMartijn Van de Linde, the Chief ExecutiveOfficer of ADT. It also cements the growing importanceof Khalifa Port Container Terminal as aregional and international shipping hubwhich offers an ever increasing networkof main line and feeder services withdirect access to the worlds majorcommercial centres and, in doing so,reducing the cost of trade for bothnational and foreign businesses.The weekly, fixed-day service, known as

the IGI service, links the ArabianPeninsula to India and added Abu Dhabi toits schedule when it called at Khalifa PortContainer Terminal (KPCT) in late February.Abu Dhabi Terminals (ADT) manages andoperates Abu Dhabis four main ports,including Khalifa Port ContainerTerminal, the regions first semi-automated and most technologicallyadvanced terminal, which was officiallyinaugurated on December 12, 2012. Theport operators other facilities includeMina Zayed, a historical port that hasserved the capital for over 40 years,

Freeport, for smaller vessels, andMusaffah Port, located in the heart of theindustrial area.ADT says it now gives its customersaccess to one of the worlds fastestgrowing markets through operationalexcellence and a world-class portinfrastructure. Its diverse portfolio ofservices and customer-tailored solutionsincludes terminals for containers, cargoand cruise liners and berths for roll-on-roll of vehicle transporters, containerfreight stations, cold storage facilitiesand warehousing solutions.

ADT offers direct link to India through Khalifa Port

IRAQS FUTURE BUSINESS development requiresstructured and timely access to cutting-edgeinformation and communications technologysolutions, industry experts and United Nationsofficials agree.

The benefits from IT use are not an outcomeof the technology itself but of what technologyenables, for example, access to informationwhich may reduce transaction costs and improvethe quality of customer relations, or use ofsoftware to manage inventory and labour, saidTorbjrn Fredriksson, Chief of the ICT AnalysisSection of the United Nations Conference onTrade and Development.

As demand for IT services and applicationsgrow, there will be an expanding market fortailored applications that can be used byindividuals, enterprises as well as the publicsector. This is not least important in countrieswhere another language than Englishdominates. Without relevant local content andlocally adapted applications, IT uptake will beslow especially among smaller enterprises.

Published data from the top four ISPs in Iraq(Halasat Telecom, Earthlink, Rose Telecom andATS-Iraq) estimates that five million Iraqis were

online in 2010, whereas market research firmCompaniesandmarkets.com reports that Iraqhad more than 25mn mobile subscribers at theend of June 2011 - a penetration rate of 75.6 percent. By the end of 2015, this figure could rise to93 per cent.

SAP has been active in Iraq since february2012 and says it is determined to be successfulin the potential-rich market because of an abilityto provide both enterprises and governmententities with the technological resources todevelop in a rapid, cost-effective manner.

ADT says the new link confirms the growingimportance of Khalifa Port Container Terminalas a regional and international shipping hub.

Iraq had more than 25mn mobile subscribers in June, 2011.

GE HAS RECEIVED contractstotaling approximatelyUS$500mn to provide equipmentand long-term services, directlyand via engineering procurementcontractors, for the EmiratesAluminium (EMAL) smeltercomplex in Abu Dhabi. The projectis expected to result in loweremissions, addressing the UnitedArab Emirates (UAE) goal toachieve cleaner and more efficientindustrial growth and enablingEMAL to produce aluminum withbetter fuel efficiency.

THE REGIONAL PLASTICconversion market continues togrow at an impressive rate of for7.6 per cent which is more thandouble the global average. Thisbrought the total polymerproduction capacity of the bigfive high volume plasticscategories in the GCC to 23.6mntonnes per annum by the end of2012, according to the GulfPetrochemicals and ChemicalsAssociation (GPCA)

BRIEFLY Iraq to benefit from rapid adoption of technology




Market News18

ETIHAD RAIL THE masterdeveloper and operator ofthe UAEs national railwaynetwork announced thesigning of a Memorandumof Understanding (MoU)with Aramex, the globallogistics and transportationsolutions provider. TheMoU, signed by ShadiMalak, executive director ofcommercial at Etihad Rail,and Hussein Wehbe,general manager - UAE atAramex, comes at a time ofrapid growth for theregions transport and logistics market. Once Etihad Rail is operational, Aramex will utilise the railnetwork for deliveries across the UAE and for cross-borderservice to other Gulf countries. Upon completion, the Etihad Rail network which will cater toboth freight and passengers will span approximately 1,200-km across the Emirates. It will connect urban and peripheralcommunities, facilitate trade, open up communicationchannels and foster economic development. The network willalso form a vital part of the GCC Railway Network linking theUAE to Saudi Arabia via Ghweifat in the west and Oman via AlAin in the east. The tendering process is already in progressfor Stage Two, which will connect the railway to Mussafah, theGulf ports of Khalifa and Jebel Ali, and the Saudi and Omaniborders. Preliminary engineering for Stage Three, which will

connect the rest of theNorthern Emirates, is alsowell underway. Commenting on the MoU,Shadi Malak, executivedirector of Commercial atEtihad Rail said: EtihadRail is changing the face oftransportation in the UAE,delivering a mode oftransport that is preferredin the logistics industryworldwide for its safety,efficiency, low costs andenvironmental benefits. Welook forward to working

with Aramex and are confident our rail network will offer themost effective means to deliver their customers goods acrossthe UAE, and subsequently to bordering GCC countries, in apartnership that signifies yet another achievement for thelogistics industry in the region. Hussein Wehbe, Aramex general manager for the UAE, added:Etihad Rail is a strategic step forward in UAEs continuousevolution as one of the leading, trading and transportationhubs in the world. The GCC region is one of our core marketsand with this partnership Aramex will have multi-modaltransportation capabilities, reduced cross-border logisticscosts and processes competitive advantages that strengthenour regional business further. It also fits strategically with oursustainable business model and we believe it will be ofimmense value to our customers.

Aramex to utilise regional rail network to enhance market connectivity

BUILDING INFORMATION MODELING (BIM) software pioneer Tekla announced the appointment of anew management duo, as it aims to take its Middle East operations to the next level.

Paul Wallett takes on the role of Area Business Director, having recently enjoyed a successful two-year stint as the companys business manager, and Anwar Al-Qwasmi has been recruited as theGeneral Manager for Saudi Arabia. It is hoped that the new appointments will build on Tekla MiddleEasts double digit growth over the past three years. In the Middle East, the company is expecting toincrease its staff and reach higher growth than many other regions to better serve the areasbooming construction sector, which according to industry experts, is estimated to be worth US$ 4.3trillion by 2020

Key to this progressive strategy is the growing influenceamong local contractors of Teklas BIM solutions, whichcan revolutionise both project management and profitmargins.At a time of sustained growth across the regionsconstruction industry, we are here to help our customersand partners realise maximum profit from their projects. Ifirmly believe that Teklas BIM software is the way forwardfor the construction industry, said Wallett.The expansion of the construction sector in Saudi Arabiais fuelling the demand for technology. In such a dynamicmarket, companies demand the right tools and marketexpertise to facilitate growth. Tekla is ideally positioned toprovide this, added Anwar Al-Qwasmi.

The pairs priorities are to drive the companys expansion across the region, strengthen an alreadythriving economy and ensure that Teklas BIM software continues to help construction companiesdeliver profitable projects on time.

The signing of the MOU comes at a time of rapid growth for the regional logistics market

www.tekla.com

THE SAUDI ARABIAN MiningCompany (Maaden) has signedan agreement with Sabic and theUS-based Mosaic Company todevelop a SR26bn (US$7bn) fullyintegrated, world-class phosphateproduction facility in SaudiArabia. Maaden will own 60 percent, Mosaic 25 per cent andSabic 15 per cent, said astatement. The new complex willbe one of the largest integratedphosphate facilities in the worldand will approximately doubleMaadens existing phosphateproduction.

THE LOW & Medium VoltageDivision of the SiemensInfrastructure & Cities Sector hasbeen awarded an order by theToyota Tsusho Corp. of Japan tobuild 24 transformer substationsfor the Iraqi Electricity Ministry.Siemens will build the turnkeysubstations in 10 Iraqi provincesto help upgrade the power supplyin the country. The contract isvalued at US$78mn.

BRIEFLY Management revamp to boost Teklas regional ambitions



S05 TRME 3 2013 IT_Layout 1 25/04/2013 15:48 Page 19

AARELENTLESS EXPLOSION OF BigData plagues many stakeholders,from IT to Legal, as they grapplewith how best to retain, access,

discover and ultimately delete content incompliance with evolving regulations.

The big deal with Big Data starts withthe sheer volume, which is beinggenerated by a growing number ofdevices, data sources and applications.

According to IDC[1], the worldgenerated more than one zettabyte (ZB),or one million petabytes (PBs), of data in2010. By 2014, the growth is predicted toreach 72 ZBs a year. The influx ofmachine generated data, unstructureddata (e.g., images, audio or video files)as well as semi-structured data (e.g.,emails, logs, etc.) adds a layer ofmanagement complexity, especiallywhen determining the most efficient andreliable way to ingest, protect, organise,access, preserve and defensibly deleteall this vital information from the broadvariety of sources.

Perfect stormIts not all bad news though as all thisdata can be a huge asset. But without amodern management strategy, it can alsobe a huge liability. In sifting throughvoluminous Big Data to find responsiveinformation, organisations can spendmillions of dollars to isolate relevantElectronically Stored Information (ESI) andeven more to review it.

Clearly, exponential data growth, diversityof data types and never ending demands for

optimised retention and discovery will createthe perfect storm unless companies steertoward a more holistic approach tomanaging Big Data. In doing so, they canbegin to view data backups and archivesmore strategically while leveragingintegrated solutions for lowering storagecosts and compliance risks.

FlexibleMost importantly, they must chose toinvest in technology that meets thedemands of the business with a flexibleand adaptable strategy that will bestaccommodate future requirements.Companies can then extract maximumvalue from all their crucial information inways that produce valuable businessbenefits without the limits of technologylock-in.

For too many organisations, backup andarchive functions are deployed andmaintained as separate silos# within anoverall information management strategy.This is not smart for a number of reasons.Multiple, disparate hardware and softwareproducts typically manage these datasilos, which leads to duplicate copies ofinformation that must be protected andpreserved with inadequate visibility intowhat is being maintained.


Communications & IT20

A holistic approach toinformation managementmeans big benefits in costreduction and riskmanagement, says AllenMitchell, Senior TechnicalAccount Manager, MENAat CommVault Systems.

Grappling with IM in theera of big data

One way toaccomplish the

industry wideexpectation of doing

more with less' is tounify backup and

archive



Compounding the problem is the factthat two distinctly different groups aretraditionally responsible for dataprotection and preservation respectivelywithin most corporate environments. Inmost organizations, storage and backupadministrators oversee data protectionand therefore are heavily focused on theimpact Big Data has on backup windows,recovery SLAs and infrastructure costs.

SimilarWhile information management buyersare fixated on how Big Data affects dataretention, discovery and informationgovernance policies, they often operatewithout regard for the operational impactof these policies.

As a result, a chasm exists betweenthese two critical constituents in ongoingBig Data conversations. While backup andarchive serve different purposes, thefunctionality is similar: both processesmake a copy of original data either forrecovery or preservation.

BenefitsWith that said, Gartner[2], among others,predicts that being able to look at backupand archive holistically promisessignificant cost reduction and riskmanagement benefits. The convergence ofbackup and archive is an emergingconcept that is gaining traction asorganizations seek solutions to reduce thenumber of copies created for backup andarchiving while more closely aligning dataaccess policies for both.

One way to accomplish the industrywide expectation of doing more with less'is to unify backup and archive. Thisrequires cross functional teaming andstarts with developing a betterunderstanding of how applications, usersand critical business processes need toaccess data throughout its lifecycle. Thiseffort requires collaboration between allstakeholders and those responsible forboth recovery and discovery. Thiscollective group should examine all thedifferent policies and practices used tomove, copy, catalog and access data forbackups, retention, recovery, discoveryand disposition. This will result in many ofthe hurdles to the streamlined access toindividual and corporate data beinguncovered.

Another typical outcome of the initialreview process is the eye-openingrealization that multiple copies of datareside everywhere- on physical and virtualservers, in the cloud, in backuprepositories, in legal and IT archives aswell as on employees desktops andmobile devices scattered throughout thecompany.

While the number of redundant datacopies can be reduced effectively andefficiently through deduplication, thebiggest benefits come from consolidatingdata in a single data store that leverages acommon hardware and/or softwareinfrastructure for backup and archive.

The notion of such a single datarepository that eliminates redundanciesand separate silos is compelling on many

levels. A holistic approach that capturesdata once and then repurposes it for dataprotection and preservation is key togetting the right data into the hands of theright people so they can turn it intosomething more meaningful andactionable for the business. Thisapproach also aids centralized reportingthat enables business and IT leaders tomake more informed decisions with theirdata while bolstering analytical skills.

Serious risksMoreover, a central place to delete dataalso reduces both the cost and risk ofinadvertently storing multiple copies.Understanding large data pools wellenough to extract and collect relevantsubsets for both reactive and proactiveeDiscovery can prove to be a huge costand risk reduction exercise. Mostimportant, companies can maintain abalance between capturing too much dataor not enough as both scenarios posepotentially serious business risks.

The benefits of deploying an integratedinformation management strategyresonate throughout all levels of anorganization, including outside of IT,ultimately resulting in better co-workercollaboration and sharing of passivecontent enterprise-wide.

Forward thinking companies whichembrace a unified approach for managingboth backups and archives, will be able totake full advantage of a future-proofsolution that elevates overall informationmanagement while providing appropriateaccess to business-critical information asit ages.

IDC White Paper: Rethinking yourData Retention Strategy to BetterExploit the Big Data Explosion, RickVillars, Marshall Amaldas, October2011.

Gartner, Does Integrated Backup andArchiving Make Sense? Dave Russelland Sheila Childs, March 2012


Communications & IT22

Allen Mitchell Senior Technical Account Manager MENA CommVault

Most importantly,they must chose to

invest in technologythat meets the

demands of thebusiness



S06 TRME 3 2013 Manufacture_Layout 1 24/04/2013 16:47 Page 23

EEMIRATES STEEL, THE onlyintegrated steel plant in the UAEutilising the latest technology toproduce high quality rebar, wire

rod and heavy sections, has nowenhanced its facility in the Industrial Cityof Abu Dhabi to manufacture 40mmreinforcing steel bars (rebar) to meet thegrowing demand for steel in the regionand beyond and provide the highestquality of steel to benefit customerrequirements.

We are happy to announce that we haveadded a new 40mm size to our existing rangeof 8mm to 32mm rebar, said Engineer SaeedG Al Romaithi, CEO of Emirates Steel.

CompleteThe companys product range includesrebar and rebar in coil, wire rod, hotrolled structural steel sections, whichinclude beams, columns, channels,angles and sheet piles; direct reducediron and steel billets.

With the addition of the 40mm size, therebar range is now complete.

We want to make sure that we providethe market with its requirements of steelrebar in all sizes to cover the needs of ourcustomers and to bridge the gap in themarket, added Al Romaithi.

Prior to that, requirements for 40mmrebar were covered by imports, mainly fromTurkey. But now that Emirates Steel hasadded that size to its portfolio, the need forimports has been sharply reduced.

UnchangedAccording to the statistics released byEmirates Steel, consumption of rebar in theUAE in 2012 reached 160,000 metric tonsper month. Of that, consumption of 40mmrebar, which is used mainly in constructinghuge building towers, sizeablemanufacturing units and bridges, stood at

around two per cent. These figures areexpected to remain unchanged in 2013.

Technical modificationsAl Romaithi said he expects Emirates Steelto grab the largest share in the 40mmbracket of the rebar market, competingagainst Turkish domination.

To start the production of the new-sizerebar, certain technical modificationshad to be made to the rebar plant.Emirates Steel is a leading producer ofrebar, which is regarded as a premiumquality product due to the sourcing ofpremium quality iron ore, the state-of-the-art assets used in the manufacturingprocess and the implementation ofinternal quality control procedures.

Emirates Steel is certified tomanufacture Grade B500B rebar and coil,in addition to Grade 460B.

Emirates Steel is owned by SENAAT,the UAEs largest industrial conglomerateand a driving force for implementing theAbu Dhabi governments industrialdiversification policy. Strategicallylocated in the Industrial City of AbuDhabi some 35-km away from the heart

of the city of Abu Dhabi, Emirates Steelis the only integrated steel plant in theUAE, utilising the latest rolling milltechnology to produce rebar, wire rodand heavy sections.


Manufacturing24

Emirates Steel has addedto its product portfolioand reduced the need forimports.

Emirates Steel expandsproduct portfolio

A premium quality product

We want to make sure that we provide the marketwith its requirements of steel rebar in all sizes


Emirates Aluminium (EMAL) and ECLFrance joined together and celebratedthe installation of the first Pot TendingMachine (PTM) for the projects Phase IIexpansion. The PTM is one of fifteensuch machines that will operate on thenew potline at EMAL, which, oncecompleted, will be the longest singlepotline in the world at 1.7-km. As part ofthe Phase II development, ECL hassupplied EMA L with equipment for thepotroom comprising of 15 PTMs, 2transfer Gantries, 1 cathode transportcrane, 2 lifting beams, 16,200 anodeclamps and a pair of J-hooks foractivities connected with the operationof the reduction cell.

Potroom takes shapeat EMAL


For more information visit www.abc.org.uk


or email [email protected]

Test a publishers statement of circulation. In todays business climate you cant afford not to.

accurate, independently

your advertising investment.

Be wise when you advertise

If you want to find out more about Technical Review Middle East then visit www.technicalreview.me

or contact [email protected]

SERVING THE REGIONS BUSINESS SINCE 19849 4



Manufacturing26


Tremco illbruck was created fromthe merger of Tremcos EuropeanSealant and WeatherproofingDivision with Illbruck SealantSystems in September 2005. It'sa combination which thecompany says gives Tremco-illbruck a leadership position inthe sealants, glazing,waterproofing, flooring andpassive fire protection marketsthroughout Europe, the MiddleEast and Africa.Tremco-illbruck also claims to bea centre for innovation. Inparticular, the company mentionthe centre of excellence forpolyurethane foam products,based in Arkel, Netherlands,which has, according to thecompany, introduced some 'trulyunique and remarkable products'in the past couple of years. In addition to traditionalconstruction foams and fire ratedfoams Tremco recently introducedan elastic foam (FM637), for rapid

sealing of movement joints andgaps, high strength foamconstruction adhesive (PU108) forimmediate bonding of demandingconstruction substrates andPU700 masonry adhesive. This latter product is designed toreplace traditional sand/cementmortar. Tremco claims it is quick,clean, light weight andincredibly strong. One single canof PU700 replaces 25kg ofmortar. A bond is made within10-15 minutes which is actuallystronger than the cohesivestrength of the blocks beingbonded., Tremco claim.The manufacturer says the PU700 is particularly useful in highrise construction, fast trackprojects and prefabricatedconstruction. PU 700 is alsosuitable for internal and externalapplications and apparentlyprovides long-term resistance towater and dilute acid andalkaline solutions.

An alternative to mortar


S07 TRME 3 2013 Power 01_Layout 1 24/04/2013 17:23 Page 27

TTHIS REVIEW COVERS both dieseland gas engine driven generatingsets for the markets of the MiddleEast and North Africa. The market

is primarily measured in aggregategenerating capacity rather than in terms ofvolume or value. This tends to provide amore accurate analysis as it is not affectedby changes in mix or the movement ofexchange rates. In recent years there hasbeen a marked increase in the demand forsmall units i.e. below 7.5 kVA which, onoccasions, has tended to distort thepatterns of demand. It is still early in theNew Year to have definitive information onthe full outcome of the last year, 2012, butthis review does draw comparisonsbetween 2011 and the latest dataavailable for 2012.

In 2011 the markets of the Middle Eastincreased by over one third to a total of10,360 MWe. This represented theaggregate electrical output of 98,000generating sets having a value ofUS$1.67bn and was against the backdropof a falling market for two consecutiveyears in 2009 and 2010. However thisrecovery appears to have been short livedin 2012.

In 2011 the Middle East marketsrepresented 12.3 per cent of globaldemand, but if sets below 7.5 kVA wereexcluded the total consumption of unitswas more than halved to 47,600 (10,155MWe); 12.4 per cent of global demand

valued at US$1.52bn. In terms ofaggregate output fifty one per cent of allunits consumed had ratings in excess of750 kVA i.e. a total of 4,500 units with anaggregate capacity of 5,275 MWe.

The number of generating setsconsumed in 2012 increased by 19,500 to117,850, but the aggregate generatingcapacity fell by seven per cent to 9,600MWe with the market valued atUS$1.65bn; 10.2 per cent of the globaltotal. During the year there appears tohave been an exceptional increase in thedemand for units below 7.5 kVA bringingthe total for the year to 70,000. Theserepresent almost 60 per cent of all unitssold but only three per cent of the totalgenerating capacity and 13 per cent of themarket value. There was an unexpectedfall in demand for generating plantbetween 75 and 2,000 kVA, a range whichin the past has provided steady growth,but an encouraging increase for setsbetween 2,000-4,000 kVA. However, inaggregate, units above 375 kVA stillaccounted for 70 per cent of the megawatt


Analysis28

Limited production ofgensets in the regionmeans demand is largelymet through imports.

Slower growth seen forgenset sales

Imports represent asignificant element of

the market and in 2012a total of 130,000 sets

were imported



demand and 60 per cent of the value.When taken over the past five years i.e.

from 2007-2012 the underlying trend indemand has averaged 3.2 per centannually, considerably lower than insimilar periods in the past when it hasbeen as high as nine per cent.

With limited production facilities in theregion, apart from those in the Lebanon,demand is largely met by imports fromEurope, Asia and North America. Lebanonhas grown in importance as a supplier toboth the Middle East and Africa in recentyears. In 2011 it secured a 10 per centshare of the African market and for thefirst time became the fourth largestsupplier to that continent after the UK,China and France.

Middle East imports increasedsignificantly in 2011, a positiveimprovement following the progressivedecline since their peak in 2008. A totalof 96,500 generating sets having anaggregate generating capacity of 10,150MWe and value of US$1.63bn wereimported, the highest level everrecorded: almost seven per cent morethan the peak of 2008. In terms ofaggregate output 70 per cent of thesehad ratings greater than 375 kVA.

By 2012 imports were 7.5 per cent lowerat 9,380 MWe and valued at US$1.61bn.Because of the high level of imports ofsets below 7.5 kVA volume is estimated tohave increased by almost 20,000 units to115,500. Over the past five years importshave risen at a rate of about three per centannually. Apart from the plethora of smallgensets, those with ratings between 7.5and 75 kVA at 24,000 units are back to thepeak level of 2008, and although therewas modest growth in the import of setsabove 2,000 kVA, the demand for othersbetween 75 and 2,000 kVA declined.

The underlying trend of imports for thepast five years has been four per centannually. The Middle East is the worldsthird largest importer of generating plantand accounts for 19 per cent of the globalgenset trade after the Far East at 31 percent and Europe 20 per cent.

The United Kingdom remains the largestsupplier to the region with a 34 per centmarket share, followed by China which,over the past five years, has increased itsshare of exports to Middle Easternmarkets to 17 per cent. The USAmaintained its 13 per cent share but theLebanon saw a considerable decline from13 per cent in 2011 to seven per cent lastyear. South Korea has emerged morerecently as an important supplier of largergenerating plant for sets of a capacity in

excess of 2,000 kVA. The top fivesuppliers to the region meet 80 per cent ofthe demand.

In 2012 the five major consumingcountries in the Middle East were theUnited Arab Emirates, Saudi Arabia, Iraq,Lebanon and Kuwait. These five countriesconsumed 97,000 generating sets andaccounted for 84 per cent of the market.Whilst in recent years the UAE and SaudiArabia have been the two dominantmarkets, in 2011 the Iraq market grew byalmost two and a half times its 2010 levelto become the third largest in the region,but did not deliver any growth in 2012.

The consumption of generating sets inNorth Africa has continued to fall from1,935 MWe in 2010 to 1,500 MWe in 2011

and 1,310 MWe last year. In 2012 the latestfigures indicate that although unitdemand increased by 2,300 units to16,000 this was only for generating setsbelow 375 kVA output, and mostly below7.5 kVA. The value of the North Africanmarket in 2012 is estimated to be in theorder of US$225mn. This is just 15 per centof the African continental total.

The three markets which continue to beaffected by the popular uprisings areEgypt, Libya and Tunisia. The Egyptianmarket today is half the size it was in 2010and is now at its lowest level since 2006.Whereas the Libyan market was virtuallynon-existent in 2011 it has recovered toapproximately half its level in 2010, but isstill only 40 per cent of what it was in2009. The Tunisian market has beenregaining momentum and is now back totwo thirds of its capacity in 2009/10. Itwill take a number of years for thesemarkets to recover from the effects of theset-back to their economies.

In 2012 the combined markets of theMiddle East and North Africa areestimated to have consumed a total of


Analysis30

Lebanon has grown inimportance as a

supplier to both theMiddle East and Africa

in recent years



Nils & Abbas Trading Co. L.L.C.


134,000 generating sets having anaggregate generating capacity of 10,955MWe (Fig.1). In terms of aggregategenerating capacity 4,390 gensets above750 kVA output represent almost 50 percent of total consumption, whereas thosein the range 75-750 kVA, considered to bethe centre of gravity of the market, at22,500 units were 4,500 MWe. Whilst themarket increased in volume by 22,000units in 2012, these were almost entirelygenerating sets below 7.5 kVA. During thefive years since 2007 the combinedmarkets of the Middle East and NorthAfrica have been growing at an annual rateof 2.2 per cent (Fig.2); significantly lessthan for the past decade when growth hasbeen in double digits due to thesubstantial growth between 2002 and2007. In 2012 the regional market wasvalued at US$1.9bn, marginally less thanin 2011 (Fig.3).

Imports represent a significant elementof the market and in 2012 a total of130,000 sets were imported having anaggregate generating capacity of 10,500MWe (Figs.4 & 5). Apart from Lebanonand, to a lesser extent, Egypt, there are

few significant producers in the region. Electricity consumption in the Middle

East and North Africa was growing at acompound annual rate of 6.1 per centbetween 2004 and 2010, and last year wasestimated to be approximately 1,000million MW hours (Fig.6); a rate of increaseidentical to the annual increase in installedgenerating capacity (Fig.7). By comparisonthe demand for diesel generating plant has,on average, grown at a lesser rate than thisfor the past five years.

The United Arab Emirates is the largestof all Middle Eastern and North Africangenset markets, though its economy, interms of gross domestic product, is lessthan that of Saudi Arabia. The UAEcurrently has one of the fastest growingeconomies in the world and its real GDP isprojected to grow by up to four per cent in

2013, fuelled by strong crude oil pricesand an expansion in tourism, trade andindustry. Although the United ArabEmirates is becoming less dependent onnatural resources as a source of revenue,petroleum and natural gas exports stillplay an important role in the economy.

A total of 47,500 sets were consumed in2012 by comparison with 33,000 theprevious year, but the aggregatemegawatt capacity had reduced by 100MWe to 2,840 MWe. This arose becausethere was an increase in demand of nearlythirty percent for gensets up to 75 kVA, themajority of these between one and 7.5kVA. The demand for sets in the range 75-2,000 kVA fell by nine per cent, butbecause of increased demand in the range2-4,000 kVA the total market was valuedat US$515mn.

Driven largely by high oil prices andexpansionary public spending, SaudiArabias economy has expanded at anaverage growth rate of 3.5 per cent overthe past five years. It grew at a faster-than-expected rate of 6.8 per cent in 2012compared to 8.5 per cent in 2011. Thepetroleum sector accounts for roughly 80per cent of budget revenues, 45 per cent ofGDP, and 90 per cent of export earnings.The construction, wholesale & retail tradeand transport, storage & communicationssectors all performed well. Lower oilproduction is likely to slow the SaudiArabian economy down in 2013 but thiscould be offset by planned expansion inthe non-hydrocarbon sector. Real GDP isprojected to grow by around 4.2 per centin 2013.

In 2012 a total of 17,000 sets were sold,an increase of 4,000 on the previous year,but rather like the UAE this was entirelydue to the demand for the smaller unitsbetween 1-75 kVA. Overall the market wasvalued at US$425mn, a US$30mnincrease on the previous year.

Iraq's largely state-run economy isdominated by the oil sector and providesmore than 90 per cent of governmentrevenue and 80 per cent of foreignexchange earnings. In 2012 oil exportswere 2.6mn barrels per day, almost 20 percent more than in 2011. Governmentrevenues also increased as global oilprices remained high. The country hasfurther potential to expand its oil exportsand revenues in the foreseeable future.GDP is estimated to have grown by 10.2per cent in 2012 to a purchasing powerparity of US$155bn.

The generating set market saw littlegrowth in 2012 after the big upsurge in2011, consuming 22,000 generating sets


Analysis32

In 2011 global gensetconsumption reached

84,050 MWe, thehighest ever recorded


Middle EastNorth AfricaTotal

North Africa

Middle East


with a generating capacity of 1700 MWeand a value of US$320mn; US$10mnhigher than the previous year.

The World Bank has revised Lebanonsreal GDP growth for 2012 down from 2.8 to1.7 per cent. It attributed the countryseconomic slowdown to the effects of theturmoil in Syria. This caused growth in2011 of three per cent to drop to this levelin 2012, compared to an average of 3.8 percent for the region. Lebanons GDP growthis forecast at 2.8 per cent for 2013 and torise gradually thereafter to four per cent by2015. While the Syrian unrest continues itis bound to have an effect on domesticinflation, foreign investment andgenerating set production.

Although the domestic market isreasonably small and valued at aroundUS$95mn, Lebanon is a major producerand exporter to the markets of the MiddleEast and Africa. In 2012 it is expected,once final data is available, that Lebanesemanufacturers will have exported at least15,000 generating sets to these markets.

In Egypt the uprising initially created theopportunity for some long-term politicaland economic change, but this appears tohave stalled in recent months. Foreigncurrency reserves remain low and theimpact on the government has limitedtheir ability to deliver change. Egyptsproblems additionally include a largebudget gap and high unemploymentwhich have necessitated thegovernments request for a substantialIMF loan. Economic growth, which wasrecovering after the global financial crisisof 2008, fell from 5.1 per cent during fiscalyear 2009/10 to an estimated 1.8 per centin 2010/11 and is projected to have beenonly 0.8 per cent in 2012, but hopefullyrecovering again in 2013 to 2.8 per cent.

The consumption of diesel generatingsets has steadily diminished over the pastthree years; from 6,000 units in 2009 to4,900 in 2011 and in 2012 is unlikely toexceed 3,375. In particular the demand forlarger generating plant above 750 kVA hasfallen from 500 to 120 units over the pastthree years. Whilst there has been somegrowth in the range from 75-375 kVA in2012 the market has declined at anaverage rate of 2.5 per cent annually since2007 and demand in 2012, valued atUS$75mn, has fallen back to the level itwas in 2006.

The Algerian economy was forecast togrow by 3.1 per cent last year and by 4.2per cent in 2013. However, the IMFrecently forecast that GDP growth is morelikely to be 2.5 and 3.4 per centrespectively. Domestic demand, public

spending and revenues from the oil andgas sector continue to drive the economy.The revenues from oil and gas alonepresently account for over 95 per cent ofthe countrys exports highlighting theneed for further diversification, andfollowing recent events, much moresecurity. Algeria presently trades mostextensively with France and Italy in termsof both its imports and exports.

A total of 6,100 generating sets wereconsumed in 2012. Although almost1,000 more than 2011 the demand forlarger units above 750 KVA has beendiminishing. In the five years since 2007the market has declined on average by 3.4per cent annually and is today valued atUS$80mn. The majority of the marketsneeds are imported.

In 2011 global consumption reached84,050 MWe, the highest ever recorded.This was 6.5 per cent higher than theprevious year. Whilst only half the growthrate of 2010 it reflected the continualimprovement in market conditions since2009. Although market demand wasslowing during the latter part of 2012 it isexpected that once final data is availablethe market will have grown againmarginally to 85,400 MWe.

The compound annual growth for thefive years from 2007 to 2012, whichincludes the downturn in 2009, has onlybeen 2.3 per cent by comparison with anunderlying rate of seven per cent for thepast decade. In 2012 it is estimated that atotal of 1.25mn generating sets valued atUS$16.2bn were consumed; 43,000 morethan in 2011 (Fig.8 & 9). Of these 1.25million generating sets consumed by theworlds markets in 2012 fifty per cent wereof an output of less than 7.5 kVA, butrepresented only three per cent of theaggregate generating capacity. If sets inthe range from 7.5-75 kVA are added thetotal increases to seventy per cent. In the75 to 375 kVA band, which for the past


Analysis34

Consumption of dieselgenerating sets hasdiminished over the

past three years


Total (ME + NA)Middle East


decade been the centre of gravity of worlddemand, 164,000 units were sold in 2012.During some years in the past decade thegenerating capacity of these units hasbeen as high as a third of totalconsumption, but in more recent yearshas averaged 29 per cent.

The Far East is the worlds largest and

fastest growing regional market, aposition it has retained for the pastdecade. With a compound annual growthrate of nine per cent since 2007, at 34,430MWe it is twice as large as the Europeanmarket and nearly twice the size of theNorth, Central and South Americanmarkets combined. By comparison the

European, North American and Africanmarkets have shown virtually no growth inrecent years. South America, by contrast,has grown at a rate of 11 per cent perannum since 2007 whilst the Middle Easthas been expanding at the lesser rate of3.2 per cent.

Exports constitute a large element of theworld demand for generating sets. In 2011a total of 583,000 sets were exportedhaving an aggregate generating capacityof 54,100 MWe i.e. 64 per cent of totalconsumption with a value of US$9.5bn. In2012 that is estimated to have declinedslightly to 578,000 sets with a generatingcapacity of 50,000 MWe valued atUS$8.9bn. Apart from China, SouthKorea, Japan and India the majormanufacturers are mostly located in theWestern hemisphere. The UK achieved a25 per cent share of world exports, China21 per cent (three quarters of which was inthe range 75-2,000 kVA), and the USA 15per cent. China has almost doubled itsshare of international trade in generatingplant since 2008, most noticeably byincreasing its export of generating setsabove 750 kVA by two and a half times(Fig.10).

In 2012 the global installed generatingcapacity of major power plantinstallations is estimated to have been5,400 gigawatts. This capacity has beengrowing at a compound annual rate of 3.7per cent during the past decade. Bycomparison the global consumption ofelectricity was growing at the slightlylesser rate of 3.5 per cent annually, duemostly to the slower rate of economicgrowth in both Europe and NorthAmerica. The shortage or lack of,generating capacity in any given marketwhere load factors are rising caninfluence the demand for engine drivengenerating plant.

Due to the slowdown in internationalgenerating set trade during the lastquarter of 2012, and the fact that onlythree regional markets - the Middle East,Far East and South America are showingany signs of growth, it is probable that2013 will be a year of zero growth.

Copyright: Gerald Parkinson 2012Acknowledgements: Data for this articleis provided from GENSTAT, a definitivedatabase analysing the worldwide marketfor generating sets in over 200 countries.For more information contact GeorgeWilliamson at Parkinson Associates - Tel.01452 534 388 or [email protected]


Analysis35




Power & Water36

SAUDI ARABIA NEEDS to step up efforts toprevent a possible water supply shortage causedby a rapid growth in its population, steadyexpansion in the industrial sector and low watertariffs, the Kingdoms largest bank said recently.

The population in the worlds largest oilexporter has grown at an average three per centannually over the past two decades and isexpected to maintain that pace over the next fiveyears, National Commercial Bank (NCB) said.

While water consumption over the same periodhas fallen by approximately 1.5 per cent annually,the demand for desalinated water has increasedby more than double that of the populationgrowth, at 6.27 per cent, it said in a study.

The water-power nexus is a time-sensitivechallenge faced by countries worldwide, withespecially grave consequences for countries inthe MENA region and especially Saudi Arabia,said the study.

The Kingdoms rapidly rising population,expansionary fiscal policies and largeinvestments in social and physical infrastructure,have exerted pressure on the existing waternetworks..the accelerated pace of waterconsumption relative to that of population isattributed to the low utility rates faced by thepublic, as the water sector is heavily subsidizedby the government.

The study said average water tariffs in SaudiArabia are the lowest within the Gulf Co-operation Council (GCC) countries and among thelowest in the world.

As the Saudi population is estimated to reach31.69 mn in 2015, additional pressure will beplaced on energy intensive desalination plantsfor potable water, NCB said.

APR ENERGY RECENTLYannounced that it has signed thelargest contract in the companyshistory and historically one of thelargest interim power projectswith a public utility. The contract,signed with the national utility ofLibya will provide for a fullturnkey 250MW power plant. Thefast-track solution, featuringmobile turbines will help toprovide interim power while thecountry repairs and builds itsinfrastructure as well as coveranticipated power demand duringthe critical summer season. TheLibya contract will be the eighthmajor project that APR Energy hascompleted in Africa, and is thelatest in a series of projects usingdual-fuel turbines as a fuel-exible and efcient solution forits customer. APR Energy'scontracted solution in Libya willcomprise four sites, stretchingfrom the northern to thesouthern end of the country, tomeet the electricity needs on aregional level.

BRIEFLY

Water shortages are asensitive issue in the region

Water shortage looms for Saudi Arabia


S08 TRME 3 2013 Power 02_new_Layout 1 24/04/2013 16:49 Page 36

NESMA ELECTRIC HASrecently secured a contractfrom Saudi ElectricityCompany (SEC) to build asubstation at the KingAbdullah University ofScience and Technology(KAUST) in Thuwal.Under the agreement, theJeddah-based engineeringand contracting companyfor power transmission,distribution and generationfield will set up a 110/13.8kVsubstation known as KAUST-2 at the university valued at US$21.3 million.Nesma Electric Deputy General Manager Salah Al-Sunaid saidWe are committed and honored to deliver the best services toour prestigious clients. At Nesma Electric, quality objective andbusiness objectives are synonyms. The KAUST-2 substationproject is on fast track and is very critical.The project is being financed by Saudi Aramco and issupervised by Saudi Electricity Company. Nesma Electric is asubsidiary company of Nesma Holding Group chaired bySheikh Salah Al-Turki

www.nesma.com

RITTAL MIDDLE EAST (Part of Rittal GmbH & Co. KG), a leadingsystem supplier for industrial enclosures, climate control, ITinfrastructure, power distribution and software & services,enjoyed a successful participation with their Innovations Stand(Hall 5, Stand 6-A10) at the recent Middle East Electricity Exhibition(MEE) in Dubai. Showcased on the stand were Rittals industrial-electrical products including AE enclosures, CM enclosures, TS-8enclosures, stainless steel products, RiLine componentscomplying to global standards and certifications, EX enclosures

plus Innovation Ri4Power(form-4, type tested MCCsAcc. to IEC 947), SEenclosures, cooling unitswith Blue-e technology,and more. Rittal found theexhibition to be the rightplatform to recognise keychannel players by givingspecial awards for theircontributions to thecompanys success in theregion. The president &vice-president from RittalsGermany HQ visited the

exhibition and were present at the Rittal stand to interact withclients. Commenting on this years participation, Mr. Najjar, MDRittal MEA said: MEE is an ideal platform for launching newproducts and creating brand awareness. Rittal consider MEE as avery important event for our growth and development in theregion. Apart from continually innovating products, we haveincreased our strength by 20 per cent in 2012 and look forward tofurther expansion in 2013 in order to better penetrate and supportour markets all over the region.

A view of the Rittalstand at MEE

Nesma secures KAUST substation deal

Rittal hails MEE success




Power &^ Water38

SAFT NIFE ME Ltd, the regional representative of one of theleading designers and manufacturers of hi-tech industrialbatteries, was at Middle East Electricity earlier this year toshowcase a selection of its latest batteries, baased on nickel-cadmium (NiCd) and lithium-ion (Li-ion) technologies.

Saft says its batteries are ideally suited to the harshtemperatures and operating environments found in the MiddleEast, where they apparently offer low maintenance, reliability,long-life and optimised Total Cost of Ownership (TCO) inapplications including back-up power and off-grid hybrid powersystems. Highlights of the Saft stand included the Uptimax NewGeneration and Tel X.NiCd batteries,Intensium, Flexand Evolion Li-ionbatteries.

Saft says theUptimax batteriesdeliver reliable back-up for stationarypower applications,whilst also beingmaintenance-freeunder certain conditions. The Tel X batteries are designed foroffshore oil and gas installations. Saft also exhibited its Ni-Cdblock battery ranges, the low-maintenance SPH range and thespecialised Sunica.plus batteries.

SPURRED ON BY transmission and distribution bottlenecks and the ensuingpower shortage, the Gulf Co-operation Councils (GCCs) 15-2,000 kilovolt-ampere (kVA) diesel genset market is poised for steady growth. Several newconstruction projects coming up over the next five years will sustain the needfor diesel gensets and drive sales. New analysis from Frost & Sullivans(http://www.energy.frost.com) Strategic Analysis of GCC Diesel Genset Market(15-2,000 kVA) research finds that market earned revenues of more thanUS$564.6 mn in 2011 and estimates this to reach US$950.4 mn by 2018.Since grid electricity supply is either unreliable owing to extreme desertconditions or is prohibitively priced, several companies, particularly thosedrilling in oil reserves, rely on diesel genset power to maintain operationaleffectiveness, said Frost & Sullivan Energy & Power Systems Program ManagerAnup Barapatre. Demand from the residential segment will increase owing tothe growing population and higher living standards. In Saudi Arabia, high peakpower deficit, along with delayed power plant projects, is expected to drive theuptake of diesel gensets. Qatar, Oman, United Arab Emirates, and Kuwait willwitness high growth rates due to industrial and commercial development.Although these industrial and commercial segments are picking up pace, certainprojects that were deferred or cancelled due to the 2009 economic downturncurb sales of diesel gensets in the GCC. An increasing focus on alternativesources such as solar energy, high fuel costs, and environmental concerns willadversely impact the demand for diesel gensets, the report says. The increasingpresence of manufacturers from China and India will also intensify competitionin the region, thereby decreasing profit margins. Suppliers must form local jointventures and partnerships to strengthen their brand name and establishbusiness relationships with key end users, noted Barapatre. Sound locallogistics support is necessary to supply units and transfer personnel to remotelocations. Ensuring quality after-sales services, skilled manpower, and spareparts availability will sustain business in the long run.

BRIEFLY

www.saftbatteries.com

Batteries for demanding applications


FROM ITS ROTORCOMP products to itsnew series of air and gas measurementsystems, Bauer Kompressoren offers awide range of compressor products.Bauer subsidiary ROTORCOMP offers aportfolio which includes air ends,compact units, gas ends, booster units,catalytic oil free converters, engineeredcomponents, gas measurement systemsand accessories.Meanwhile, Bauers new range ofmeasurement systems is designed tomonitor air or gas quality for industrial

and breathing air applications. Themeasurement systems are certified

according to ISO 8573 and/or to EN 12021standards, with other standards alsoavailable, the company said.The measurement systems include theRCS oil monitor, RCS oiltube, RCS airmobile (available in basic or pro), RCSmultigas and RCS multigas ultra.According to Bauer, advantages of themeasurement systems include cost-efficiency; flexible and modularproducts; customised applications;reliability and accuracy; and thepossibility of on-site calibration.

IN KEEPING WITH the Saudi objective tomanufacture locally, AFI is investing in theexpansion of its fabrication facilities up to900 sqm. This will increase the companysfabrication capabilities for industrialvacuum loaders, vacuum & jetting tankers,lubrication trucks, containers and otherfabrication jobs. This is expected to becompleted by Q3.

Moreover, AFI Factory has invested byacquiring new machinery. The objective isto have more advanced technology andhigher productivity.

The company has acquired at least eight

machines i.e. CNC plasma cutter, rollingmachine, press brake, CNC turning center,radial drilling machine, weldingmanipulator, hydraulic cylinders, and astraightening press.

These machines will further help AFI toexpanding its manufacturing capabilitiesfrom manufacturing of regular cylinders,HPU fabrications, mobile equipment andother various jobs like fabrication andassembly of super suckers, specialfabrications like pipe containers, piperacks, and skids.

The equipment will also assist in the

precision machining of motors, pipesupports and shafts, and for mechanicalassemblies like scrapper handling.

According to Amjad Khan, factorymanager at AFI: These advancements willincrease our productivity and will help withtimely delivery and improve the quality ofour products.

It will also encourage the sales team toshowcase our facilities to their customersand will generate trust and confidence sothat they purchase their requirements fromus. With this, it will lead to increase ofturnover and profitability , Khan said.

AFI - investing in the future

Bauer offers innovative compressor range



Power & Water40

THIS YEARS SAUDI International Water,Electricity and Power Generation Forumtakes place from 19-21 May. The ninthedition of the Eastern Provinces leadingall-forms power event is again being heldin the Dhahran IEC. Nearly 4,000interested visitors came to theassociated products exhibition last year;for details of the many product sectorsincluding water desalination equipmentand services on display in 2013 see thewebsite detailed below. Except on theopening day entry is available between10.00 and 18.00hrs.Arrangements at this years WEPowerForum are being supported from Riyadhby the Ministry of Water & Electricity andTechnical Review Middle East is proudto have been appointed Official Publisherfor the latest edition of such a regionallyimportant and increasingly popularannual event.More than 200 delegates are expected atthe strategic conference which lies at theheart of this event in the Kingdomslargest energy producing- and consuming region this year.As the published-online programmeshows, the Forum has been arrangedessentially this year as distinctive Powerand Water days (13 and 14 May

respectively), but with considerableoverlap reflecting the integrated natureof the utilities industries as representedby companies such as WEC in the KSAtoday. It will again present delegateswith a wide range of representatives fromthese inter-related industry sectors. Thegathering is therefore being offered once

again as an ideal opportunity to networkwith the leaders of the Kingdoms (andsome of the rest of the whole MENAregions) really big players in these coreactivities, such as Desertec (currentlyimplementing a huge solar power exportscheme in North Africa and representedat this event by the Foundations Gulf

WEPower 2013 - an ideal networking opportunity

AL-FUTTAIM AUTO & Machinery Co LLC (FAMCO) presented a rangeof Yanmar and Himoinsa generators at Middle East Electricity thisyear, including an array of features and benefits available on thedifferent sizes of units. These included Yanmar generatorsranging from two kva to 70 kva with Himoinsa generators rangingfrom 3 kva to 3000 kva. The company also displayed portablelighting towers that are apparently quite popular at constructionsites, camp sites and event sites.

Technical Review spoke to Terry McGuire, General Manager,Power & Industrial Products Division, Al-Futtaim Auto & MachineryCo. LLC FAMCO).

"Visitors will have seen the tremendous brand presence we hadthere - our message was loud and clear we want people to knowthat FAMCO are serious about the power industry. The winning ofthe Middle East Electricity Award for the best campaign of 2013was a great recognition that our efforts are being noticed. We arealready in the UAE and Qatar and are now entering the Saudimarket. We are also building upon the experience we have inproviding services to our customers. This is most important as wemove forward," McGuire said.

FAMCO has several divisions. For the power division, the successfulinstallation and commissioning of the 2000 kVA Himoinsa generatorat Ikea, in Doha was one highlight of a busy 2012.

"Our dealer initiative is also gaining momentum as we attractsome new and traditional players in the market", McGuire said.

"Our aims are to expand our Yanmar presence in the localmarket and build a comprehensive dealer network which includes

Africa. As for Himoinsa we are looking to increase our position inthe rental market as well as promoting awareness of the brandacross the region," he added.

McGuire said the market is now maturing where service, qualityand reliability are key differentiators. "Customers are becomingmore discerning and demanding, and we are proud to be knownfor customer service, as well as some great brands. We arebuilding our teams across the region to meet t

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