Big 5 2015: 'Oil price makes Middle East hesitant'
"There is definitely a hesitation in the market", ElectroMech chief tells Construction Week at The Big 5 Dubai
The global drop in oil prices has led to some uncertainty and hesitation in the Middle East’s heavy machinery market, according to Tushar Mehendale, managing director of ElectroMech.
ElectroMech is a crane supplier headquartered in India.
Speaking to Construction Week on the sidelines of PMV Live 2015, Mehendale remarked on how the exhibition had progressed for his firm: “We’re getting enquiries not just from the UAE, but from representatives of neighbouring countries as well.”
Asked whether co-hosted show, PMV Live’s – and the construction industry’s – performance has been dampened by the global slump in oil prices, Mehendale added: “There is a slowdown, yes, but I must add we’re still finalising orders and growing at ElectroMech, so we can’t complain.
“There is definitely a hesitation in the market, but companies with confirmed contracts on projects expected to span the next two or three years are continuing with their investments, as are local governments, which is encouraging,” Mehendale added.
ElectroMech's chief said market sentiment is focussed on how the oil price correction currently underway will change fortunes in 2016.
"This is not the first time oil prices have [fluctuated]," he said.
"Historically, oil prices have often seen highs and lows, and it is no different now," Mehendale added.