ME power cable market set to hit $9.22bn in 2020
UAE, Saudi Arabia and Iraq to ramp up power sector spending, says Frost & Sullivan
The market for power cables across the Middle East is being given a major fillip by vast investments in the Gulf Cooperation Council (GCC) interconnection power grid, according to research by global growth consulting firm Frost & Sullivan.
“The Gulf Cooperation Council (GCC) interconnection power grid project, which has been drawing huge investments from all participating countries, will drive the need for power cables,” said Frost & Sullivan Energy & Environmental Consultant Mohammed Faraz Khan. “The first phase of the project has brought in a capital of around $1.1 billion, indicating its potential to rejuvenate the Middle East power cables market.”
“Competition in the Middle East power cables market has intensified and tier II and tier III suppliers have instigated price challenges,” he said.
Large investments in the power, oil and gas, infrastructure and construction sectors across the Middle East have fuelled the dramatic growth in power cables contracts,
Frost & Sullivan research data shows that the private sector’s contribution to power generation is expected to grow from 7.4% to more than 17% by 2020 with Saudi Arabia contributing about $100bn alone, thereby indicating there are significant opportunities for cable manufacturers across the region.
The 2022 FIFA World Cup in Qatar and the 2020 Expo in the UAE are the headline events that will further increase demand for power cables.