Exports to UAE
Opportunities for Indian
Pump manufacturers

United Arab Emirates (UAE) came to existence on 2nd Dec 1971 . UAE is a federation of seven emirates namely Abu Dhabi, Dubai, Sharjah, Ajman, Umm al Quwain, Ras al Khaiman & Fujairah, Abu Dhabi is its capital.

The terrain is primarily flat with barren coastal plains merging into the rolling sand dunes of the vast desert, however high mountains are found in East. UAE has some 700 kms of coastline, including 100 KMs of Gulf of Oman. Most of the area is under Abu Dhabi emirate; Dubai is second largest city. Other important cities include Al Ain, Ajman, Dhaid, Fujairah, & Ras Al Khaiman.

Climate: The UAE has sub tropical basically arid climate. Rainfall is infrequent & irregular. The average rainfall is about 13 cms, a year. Temperature ranges from a low of about 10° C. To high of 48° C. The mean daily temperature in Jan is around 22°C & around 41°C in the month of July.

Language: Arabic is the native language in UAE, though English is widely spoken. Most of the business transactions are in English.

Resources: The UAE is one of the world's wealthiest countries, with large proven reserves of Oil & Gas. Most of the oil reserves are under Abu Dhabi. The economy of Dubai mainly depends on trade and tourism; where as other emirates are mainly supported by Abu Dhabi & the central Govt.

Economy & Industry: The economy & industry have been growing with prosperous trends over the years as local & foreign business investments are increasing in the country due to:

01. Encouraging Govt. Policies & incentives to support business.

02. Easy & transparent Govt. Procedures.

03. Easy transfer of profits / money any time anywhere, without taxes etc.

04. Low crime rates, stable political & financial systems.

05. Very good infrastructure.

The Exports of the country include petroleum, base metal, minerals, chemical products, textile, ceramic and precious stones. Re exports generate very large revenue.

Key Characteristics of ,UAE market:

1. Large: Despite very small area & population, lot of new products, ideas, trends find market, as Govt. Is keen on development by using latest technology, new ideas. The second most important aspect is that UAE has a larger % of floating population. Dubai is being developed as tourist spot. Apart from this, Re Exports to various countries also is a major contributing factor.

2. Growing: The non-oil exports expanded over 200% Most of the economies of the region served by UAE are still at relatively early stage of development, so there is a scope for diversification & expansion in future.

3. Diversified: Potential for various types of products & services. In the prosperous but sparely populated Gulf, there is demand for foodstuff, equipment & luxury products.

4. Free: There are no trade exchange control, quotas or trade barriers. Import duties are extremely low & consistent over the years and some products are exempted.

5. Accessible: The most important business cities have very good infrastructure facilities. Over 100 shipping lines serve the ports & international airport serves over 70 airlines. Lot of foreign banks, advisor is available. English is main business language.

6. Competitive: Most of the well-known brands are present in market for any commodity, making the market very competitive.

7. Accepting new ideas / technology.: Market is willing to change over, to new ideas / products based on latest technologies / fashions / treads.

Ihe main business activities include Oil field related activities, Service sector tourism, Manufacturing, Trading - for own consumption & for re exports, Construction activities, Infrastructure development projects, Banking, Information Technology etc.

There is a great & ever growing demand for various types of pumps as under:

Market Scenario:

At present almost all the leading international brands of pumps are available. Especially European brands are very popular due to:

1. Reputed pump companies from Europe concentrated their efforts on this region long back & developed good distributors with terms and condition suitable for the market.

2. These manufacturers . have understood the nerves ofthe market I needs of the customers very well and offered / developed most suitable pumps for different segments/ applications. Then with their marketing efforts most of their pump features became standard / basic requirements / tender specifications generally.

3. Due to quality and reliability of the products and services offered by their distributors these brands have become popular and standard.

4. In most of the cases the brand approving authorities (Consultants) are from Europe, in fact most of the consulting firms are from UK / Europe. In most of the cases, the consultants know the products & capabilities of various pump manufacturers very well.

At present the contribution from Indian pump manufacturing is very limited. Some manufacturers especially in the field of submersible well pumps are successful in getting break through, however compared to the total business of various types of pumps, the present business is far below the expected levels. For Indian pump manufacturers there is a good potential for supply of variety of pumps to cater to the huge and ever growing demand of the pumps.

Points to be kept in mind:

1. In depth market study is required to know exact requirements & type of competition, to judge the potential for company products in the region.

E.g. a. Even for utility water Stainless Steel (sheet metal) pumps are being used.

b. In most of the pump systems two pumps as duty and stand by are used instead of operations depending on one pump.

2. The product quality should be at par with international brands. Reliability of operation is the key factor. The surface finish & packing quality etc should be like an international branded product.

3. A quick on line response system & order execution system is required. Overall dealings should be with very positive attitude and at par with international levels. The delivery commitments have to be strictly adhered to.

4. Brand approval takes time, the manufacturers / exporters should be willing to invest in Marketing activities initially with own manpower working in region to promote the brand. This period can be longer & would depend on type of pumps and the market segments.

5. An appointment of energetic / enthusiastic distributor is the next step. A distributor, supported on marketing front, can then fetch very good results / business & can offer effective service locally.

6. There are at least two or three bigger exhibitions being held in UAE / Dubai every year like BIG 5 Show, which could provide good platform for exporters to display the range of products to attract dealers / distributors & consultants / customers towards them.
 
Function    Type of Pumps generally used    Typical characteristics      
Irrigation Projects
Submersible wells
Pumps    Stainless Steel submersible (well) water
pumps    1. The requirement is by tenders.
2. Brand approval is required.
3. Technical bid and price bids are Involved.      
Building services              
1.    Transfer / Booster
Pump systems
2.     Sewage / waste water
Pump sets
3.    Fire fighting pumps set
4.    Sump pumps
5.    Pumps for other
Application    1. St. St. Vertical Multistage
pumps or St. St. Horizontal end suction pumps.
2. Submersible sewage/dewatering Pumps
3. Horizontal CI Pumps
4. Smaller submersible sump
pumps & non-metallic pumps.    1. Brand approval is required.
2. Consultant approval for any supply
Each time is a required.
3. The orders are placed by the Civil /
Electro-mechanical contractors.
4. Fire fighting contractors are
Involved in Fire fighting pump sets.      
Govt. Projects    Variety of pumps depending on type of services & applications.      
Municipality Projects    Water supply schemes, Waste
Water treatment projects, City
Beautification Projects etc.    Variety of pumps depending on type
of services / applications      
Counter sales
Off the shelf selling.    1. Submersible well pumps
2. St. St. Horizontal end suction & vertical multistage pumps.
3. Smaller sump/dewatering pumps.      
Re Exports    Variety of pumps depending on type of services / applications.      
Replacement of pumps
Used in the original
Equipment.    St. St. Horizontal end suction and vertical multistage pumps.      
Oil Field services    These are special pumps and the replacement market depends on pumps used
for Original equipment.