The combination of extensive construction activity, high population growth and harsh climatic conditions make the United Arab Emirates (UAE) an excellent market for air conditioning and refrigeration equipment. Peak temperatures over 115 degrees F and high humidity across the region make cooling a necessity almost all year round, not a luxury. The current market trend is changing towards building new high-rise buildings and large-scale luxury hotels and residential apartments.
There are currently several new institutional development projects under construction. These new projects will generate a higher demand for air-conditioning systems in the UAE.
The market demand for complex centrally packaged air-cooled water chillers is constantly growing. The growth in size of the UAE air-conditioning industry has resulted in the establishment of major local manufacturers of central air-conditioning equipment.
The UAE market is very receptive to US central air conditioning equipment, because of their reputation for high quality, safety, brand recognition, and low maintenance requirements. The vast real estate growth foreseen in Dubai and Abu Dhabi in particular indicates further growth of demand on cooling systems, the latest of which is the district cooling system which is widely used throughout the UAE.
The market demand for air-conditioning equipment in the UAE. is dependent on the construction industry. Market sources reported that the current boom in the construction sector is a direct result of the high return on investment and the introduction of freehold property ownership by non-UAE and non-GCC residents. These two factors provided a major boost to the property development industry that began in 2003.