Infrastructure Development Propelling Demand for Heating Equipment in U.A.E.

Published May 27 



Even though the U.A.E. has a hot desert climate, it does experience chilly nights, because sand heats up fast and cools down almost equally fast. Therefore, the difference between the day and night temperatures in the country, regardless of the month or season, is substantial. On another note, the economic growth of the country, led by the oil and gas sector, is being reflected in the rising living standards of its people. In fact, one of its main tourist highlights is its lavish lifestyle.


A combination of all these factors, P&S Intelligence claims, will drive the U.A.E. heating equipment market from $89.5 million in 2019 to $121.4 million by 2030, at a CAGR of 2.9% between 2020 and 2030 (forecast period). Already a vital part of everyday life in temperate and colder countries, heating appliances are finding a widening installation base in the Gulf region, as people are now able to afford them, on account of their rising disposable income. Additionally, as mentioned above, the U.A.E. attracts lots of tourists with its lavish lifestyle, for which numerous luxurious hotels and resorts are being constructed, thereby pushing up the demand for heating equipment.


The country is leveraging this and many others of its highlights to host more tourists every year. In 2016, the travel and tourism industry made an $18.6-billion, or a 5.2%, contribution to the country’s gross domestic product (GDP), which the country hopes to increase to $116.1 billion, or 5.4%, by 2027. In this regard, the government had launched the Dubai Tourism Vision 2020 in 2013, which envisioned increasing the number of tourists visiting this city annually to 20 million by 2020. Such projects entailed infrastructure development on war-footing, which has undeniably made heating equipment manufacturers happy!


Another key driver for the U.A.E. heating equipment market is the development of the transportation infrastructure. For instance, as part of the Route 2020 project launched in 2018, the Dubai Metro Red line was extended by 14 kilometers. In the same vein, Abu Dhabi is constructing more than 130 kilometers of metro lines. In another transport-related project, a new terminal is planned to come up at the Sharjah airport by the end of this year. At all such projects, heating appliances will be installed in large numbers to maintain the temperature, especially during chilly nights.

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