Middle East Electricity rated as the leading energy event of its kind in the world by exhibitors and visitors

According to World Energy Council latest estimates, the GCC requires a minimum of 100,000 MW in additional power over the next 10 years to meet the intense demand created by rapidly increasing populations - this, combined with the massive on-going boom of projects across the region (approximately US$1 trillion investment in developments that are either in the planning stages or already underway), and new policies and reforms introduced by Arab countries, has led to solid economic expansion across the region, far outstripping that of the mature markets of the US and Europe, which are relatively static.

“Over the last 30 years, the population of the MENA region has doubled to about 386 million – with the current growth level running at 2% per year (equivalent to c.7 million people per year), the World Energy Organisation (WEO) predicts that primary energy demand will more than double in the MENA region by 2030,” said Sarah Woodbridge, Group Director Exhibitions, IIR Middle East, the organisers of Middle East Electricity. “To meet this demand, the WEO believes that the countries of the MENA region will have to invest on average, US$56 billion per year in energy infrastructure alone.”

Middle East Electricity 2006 attracted over 24,000 industry specific visitors, a very high percentage of whom were decision makers. It covered 25,000 square metres, featured 803 exhibitors from 51 countries and 18 national pavilions (including the largest ever participations from Germany, which occupied an entire hall, Italy and Spain, and showcased many of the leading names from the global industry, with Ducab, Lucy Switchgear, Coopers, Areva, Hyundai, Danway, LS Group, GE Energy, Perkins, Panasonic, Al Babtain and Cummins amongst the exhibiting companies). The increasing pace of development throughout the region means that the event is set to grow even further.

“The development and enhancement of the region’s energy capability and infrastructure is of critical importance, and Middle East Electricity continues to play a major strategic role in bringing the region’s decision makers and the cream of the global energy industry together,” added Woodbridge. “More efficient generation and use of energy are top of the agenda for governments throughout the Middle East – having recognised that the energy demands they face today are only the tip of the iceberg, they are investing billions of dollars into energy related projects, and Middle East Electricity is where the real business is done.”

Alongside the rapid population growth throughout the region, the expansion of the commercial, industrial and manufacturing sectors has placed great stress on current infrastructures, and projects such as the US$1.25 billion Gulf Power Grid are designed to ensure greater power supply stability and eliminate the risk of blackouts.

Power generation is just one of the focus areas of Middle East Electricity, which showcases all areas of the energy industry, from generation to transmission and distribution, new and renewable energy to lighting and gas (a new focus area introduced in 2006).

First introduced at Middle East Electricity in 2003, Lighting Middle East, which offers the widest and most comprehensive range of pure lighting solutions (industrial, outdoor and specialist lighting) ever seen in the Middle East and North Africa, has rapidly grown, and filled an entire hall this year.
“The region’s largest and longest running exhibition for lighting professionals, Lighting Middle East features the most comprehensive range of industrial, outdoor and specialist lighting ever seen in the Middle East,” added Woodbridge. “Given the size of the market and the needs of the region, we recognise that the exhibition has an important strategic role to fulfill - working with some of the biggest names in the lighting industry and supported by the key international trade associations, we are continuing to develop and enhance the lighting element of Middle East Electricity to further increase its effectiveness for both visitors and exhibitors.”
Among the many lighting related companies that exhibited this year, Lighting Middle East featured world leading lighting innovators Osram (one of Middle East Electricity’s main sponsors), who celebrated their 100th anniversary at the show. Martin Goetzeler, President and CEO of Osram, which is now one of the world’s largest lighting manufacturers with annual global sales in excess of €4.3billion, was one of the VIP guests at the show.

“We have developed into a high-tech company in the lighting industry,” said Goetzeler. “Opto electronic semiconductor light sources now account for 11% of our total sales, and electronics are also playing a more and more important role”. According to the Goetzeler, electronic control gear not only extends the life of lamps by as much as 50%, but significantly also reduces the energy consumption of lighting systems by up to 30%.

“Middle East Electricity has always been successful for us. It’s a great opportunity for us to meet the key people from the regional industry. We see huge growth potential in the Middle East, and Middle East Electricity is very important to us as it directly targets - and importantly attracts - the exact audience that we want to reach.” said Peter Rothnie, Marketing Manager, Osram Middle East.

Gas was a new focus area at Middle East Electricity 2006. The Middle East has huge reserves of natural gas, (Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the UAE account for 42% of the world’s proven gas reserves, with Iran, Qatar, Saudi Arabia and the UAE having the second, third, fourth and fifth largest natural gas reserves in the world) – vastly increased domestic consumption of electricity throughout the region, plus the growing demand for domestic hydrocarbons for power generation, petrochemicals and desalination mean that there has been a significant increase in the use of natural gas – Saudi Arabia, for example, has made increased natural gas production a priority, and aims to triple output to 15 billion cubic feet a day by 2009.

“The gas sector is becoming increasingly important,” said Woodbridge. “Based on research undertaken with the industry and taking into account the needs of the region, we saw the addition of a dedicated gas area as a logical and essential expansion of the show.”

Abu Dhabi’s Dhs. 1 billion (est.) natural gas distribution network initiative is just one example of the importance being placed on natural gas as an alternative energy to oil.

“The introduction of this dedicated sector for the natural gas industry boosted interest in the show by a massive 16%,” added Woodbridge. “This year was our biggest ever show, both in terms of the number of exhibitors taking part and the overall size of the show - the exhibition also attracted an all time record number of visitors - 24,321 - an increase of over 8% on 2005. Exhibitors were, as always, highly complimentary about the number and quality of visitors, 97% stating that the quality of visitors met or surpassed their expectations. This is one of the traditional strengths of the event - this year visitors, over 84% of whom were key decision makers, travelled to Dubai from 88 countries to attend the show.”

As the market continues to expand, so the strategic significance and international reputation of Middle East Electricity grows. The event has proven highly effective for both visitors and exhibitors. 94% of visitors said that visiting the show had positively enhanced their business effectiveness, while 74% of exhibitors view Middle East Electricity as crucial to their marketing activity in the region.

“ERICO’s expansion plans are closely aligned with its participation in Middle East Electricity - the best show in the Middle East for participants in the electrical industry, which gauges and showcases the market potential of the region. Over the years, the event has provided a perfect platform to network with prospective clients,” said Andrew W. Weisel, Global Sales, Eritech Electrical Products, ERICO, USA.

Similar feedback was received from the large country pavilions that participated this year. “According to French sources, Middle East Electricity, which is considered one of the world’s top energy shows, is a vital platform for related companies to seek contracts of mutual interest and contribute to the region’s multi-faceted energy infrastructure projects,” said Hassan Behnam, Director & Chief Information Officer, UBI France, France.

The 2006 event also featured many new exhibitors who were taking the opportunity to identify the market potential for their products and services. “The first two days of Middle East Electricity have been fantastic for us,” said Dr. Seibold, Managing Director, Hauff-Technik, Germany. “By the end of the first day we had already made over 40 interesting new international contacts, and are confident that eight of these will develop into concrete business. This is already far more than we had expected and is much better than the response we are used to from other shows. The results so far show the business power of Dubai and the Middle East - Middle East Electricity has delivered a high quality audience of regional and international decision makers, and we have already decided to take part at next year's exhibition.”


Over 91% of 2006 exhibitors have already confirmed their participation at Middle East Electricity 2007, which takes place from 11-14 February at Dubai International Exhibition Centre.
Middle East Electricity 2007 will feature a further dedicated section of the show that focuses specifically on water related products, technology, systems and services. The amount of available renewable water per person in countries throughout the Middle East and North Africa (MENA) region is 20% of what it is in the rest of the world, with 80% falling below the international water scarcity threshold of 1,000 cubic meters per person per annum. Water coverage is also limited, with the potable water network reaching an average of 75% of the population in MENA countries.
Conventional water availability has remained virtually static while demand continues to increase sharply due to rapid population growth, increase in household income and irrigation development.
“Feedback from both the industry and our governmental contacts showed that the addition of water to the show was essential, as it gives the region’s key decision makers access to all of the world leaders from the water sector,” said Sarah Woodbridge, Group Director Exhibitions, IIR Middle East. “Our commitment has always been to develop the show in line with the needs of the region, and this follows on from the introduction of areas for power generation, new & renewable energy, gas and lighting, all of which have been extremely well received by the energy industry as a whole.”

In the UAE’s recently announced budget, the Federal Electricity and Water Authority’s power generation and distribution programme received the largest budget of any department, at Dhs. 1.68 billion. Elsewhere, indications suggest that the Saudi authorities intend to move ahead with plans to involve private investors in the provision of electricity and water, reflecting the prohibitive cost associated with adding additional capacity.

Saline Water Conversion Corporation (SWCC) has teamed up with Saudi Electricity Co. (SEC) to form an independent water and power project (IWPP). One project, the Shouaiba IWPP, involves installing a generating capacity of 900 megawatts along with a desalination unit capable of producing 174 million gallons a day. The estimated cost of the project is set at between $1.4 and $1.6 billion, with the successful bidder having a 60% stake in the project and SWCC/SEC owning the balance.

Plans are also underway for the Jubail IWPP, which will have a capacity of 2,400 megawatts and 79 million gallons per day. The Power & Water Utilities Company for Jubail & Yanbu (Marafiq) has estimated the cost of the project at $2.5 billion. The costs associated with installing new power capacity makes allowing independent investors, local and foreign, a natural choice. Saudi Arabia needs an additional capacity of 20,000 megawatts by 2010 on the back of a 4.5% growth in annual demand.

Qatar Power recently laid the foundation stone for a $247 million plant that will produce electricity and desalinated water for Doha. Located in the industrial city of Ras Laffan, north of Doha, the Ras Laffan B Power and Water Plant is projected to produce 1,025 megawatts of electricity and 60 million gallons of desalinated water a day. The project will be completed over two years, reaching full capacity by June 2008, with the first phase expected to become operational this year.

Bids for the $1.25 billion (Dh4.6 billion) Gulf Power Grid closed in mid-June and the contract awards for the first phase are expected to be announced by September - the grid will, by 2008, connect Bahrain, Kuwait, Qatar and Saudi Arabia, with the UAE and Oman being added later. The massive project involves cabling, building substations and networking all the six countries - the project will most likely commence with the construction of substations in Saudi Arabia, who are leading the project.
Featuring Power Generation, Gas and New & Renewable Energy, alongside Lighting and Water, Middle East Electricity 2007 takes place from 11-14 February 2007 at Dubai International Exhibition Centre.
“With the continued support of the UAE Ministry of Energy, we are committed to developing and enhancing the event in line with the needs of the region. One of our prime objectives is to continue to bring together key personnel from both regional and international Governments and the worlds leading energy companies - this creates the right environment for the industry to grow dynamically, benefiting from exposure to and interaction with, companies that bring global industry best practices to the region,” concluded Woodbridge.