The majority of the current or planned construction & infrastructure projects in the gulf region are mainly dominated by companies from Asia/Far East with South Korea at the top.
This development is the outcome of a trend followed by EPC Turnkey projects with very high project volumes. The contracting entities are basically looking for one main contractor who would take the sole responsibility of the project risk.
German plant construction firms usually play the simple role of a technology partner, basic planning partner or the role of an “owner’s engineer”. This is a result of their insufficient ability to take over such mega turnkey projects in terms of responsibility of finance and risk management. Unfortunately, also here and especially in the domain of traditional consulting businesses mega consulting companies are mainly dominated byAnglo-Saxon consultancies.
This development cannot be ignored as it affects a huge number of medium sized suppliers, whose supplied amount in mega projects could reach up to 70-80%. Last but not least it affects the whole following export economy for which successfully accomplished mega projects “Made in Germany” serve as cutting edge.
Download an overview of the Construction & Infrastructure Sector in the UAE.
The Construction & Infrastructure Committee aims to tackle the above mentioned challenges of the German companies especially the SMEs in this region. The objective is not only to discuss the current market situation in the Gulf region and define challenges/possibilities within this sector but also to try and work out solutions along with the involvement of the government. It will serve as a platform and learning centre for discussion and exchange in the engineering, procurement and construction sector.
Dirk Demtroeder, GADEM (German Architecture Design Engineering Management)
AHK Committee Officers:
Muzainah Hamarneh Muzainah.Hamarneh(at)ahkuae.com
Turnkey Projects in the Gulf States
Dubai, 20th and 21st May 2014
AHK organized an EPC Expert Forum “Turnkey Projects in the Gulf States” on 20 and 21 May in Dubai, where prominent industry experts, practitioners and decision makers out of the plant manufacturing and the building sector, EPC Contractors, Sub-Contractors, Sub-Suppliers including important contract entities and customers discussed the challenges, opportunities, best practices, pitfalls and formats of participating in mega-projects in the GCC-Region.
2nd Meeting in Berlin on 14th May 2013
After the first official meeting AHK and the core members had several smaller meetings where the next steps were discussed. We then planned a bigger event which was held in Berlin and included panel discussions with experts out of the industry and governmental representatives with topics such as turnkey projects, competition analysis, contract formation and risk management, financing, political support.
1st Meeting in Berlin on 20th September 2012
After establishing the Construction and Infrastructure Committee a small group of German experts met and discussed about the project market situation in the GCC with focus on the role of German companies in the region.