The Middle East ushers in a golden age for Chinese construction machinery
The Middle East is attracting the attention of the global construction machinery industry. For Chinese construction machinery enterprises,
the Middle East market is undoubtedly a arena full of challenges and opportunities.As one of the fastest-growing regions in the world, the construction machinery market in the Middle East has shown enormous growth potential and business opportunities.
This article is an in-depth introduction to the industrial policies, laws and regulations, industry trends, market demand, competitive landscape, and potential transaction opportunities in the fields of investment, trade, and engineering construction between China and Arab countries, by a trading company of China Sudege ,
The vigorous development of the economy, the vigorous construction of infrastructure, and the government's heavy investment in the construction industry have jointly driven the strong demand for construction machinery in the region.
Chinese enterprises grasping the development trends and demand characteristics of the Middle East construction machinery market is not only the key to achieving sustained growth, but also the necessary path towards internationalization.Leading Chinese companies such as Zoomlion Heavy Industry, XCMG Group, Sany Heavy Industry, and LiuGong have been deeply cultivating and working in the Middle East market. With excellent product performance, precise market strategies, and a comprehensive service system, they have won widespread recognition from customers and market favor.Their successful experiences and significant achievements not only set a model for the Chinese construction machinery industry, but also provide valuable reference and inspiration for later generations.
The Middle East, as one of the fastest-growing regions in the world, is showing enormous potential and opportunities in its construction machinery market. With the continuous development of the economy and the continuous promotion of infrastructure construction,
the demand for construction machinery in the region is showing a steady upward trend.
According to Mordor Intelligence's 2023 data forecast, the construction industry in the Middle East is expected to reach a value of $2.4 trillion by 2027, with a compound annual growth rate (CAGR) of 5.7% between 2023 and 2027. This data not only reflects the booming development of the construction industry in the Middle East, but also directly points to the huge demand for construction machinery.In addition, a 2022 study by Architecture Weekly showed that approximately 30% of construction equipment in the Middle East has been in use for over 10 years.
This means that a large portion of equipment may no longer meet the efficiency and safety standards of modern engineering, and there is an urgent need for upgrades and replacements.
The 2023 report by GlobeNewswire predicts that the construction machinery market in the Middle East is expected to reach $18.4 billion by 2028, with a compound annual growth rate of 10.38% during the forecast period from 2024 to 2028. This growth rate far exceeds many other regions.With the pursuit of flexibility and cost-effectiveness in engineering projects, the rental market for construction machinery is gradually emerging in the Middle East region.
According to multiple industry reports, the construction machinery leasing market in the Middle East is expected to grow at a faster rate than the overall market and become an important component of the market.The construction machinery market in the Middle East is in a process of rapid growth and change. Both from the current demand and future prospects, this market has shown enormous potential and opportunities.For Chinese construction machinery enterprises, grasping the development trends and demand characteristics of the Middle East market will be the key to achieving sustained growth and international development.
1: Zoomlion has significant influence in the Middle East market
The deep layout and significant influence of Zoomlion in the Middle East market are truly impressive.
As a leading construction machinery manufacturer in China, Zoomlion Heavy Industries has been entering the Middle East market for a long time and has gradually expanded its market share in the region through a series of strategies.
Firstly, Zoomlion Heavy Industries has multiple branches in the Middle East, including subsidiaries or offices established in countries such as the United Arab Emirates, Saudi Arabia, and Qatar.Taking the Oman market as an example, Zoomlion Heavy Industries established subsidiaries in Oman in 2023 and established sales and service outlets in the capital city of Muscat, covering the entire Oman country.
These branch offices are not only responsible for sales and services in the local market, but also undertake important responsibilities such as brand promotion and customer relationship maintenance. Through these branches, Zoomlion Heavy Industry can be closer to the local market, understand customer needs and feedback, and provide more targeted products and services,
Secondly, Zoomlion has developed multiple engineering machinery products that are suitable for the local market in response to the special working conditions and needs of the Middle East region. These products have excellent performance, efficient operation, and fully adapt to local climate and working conditions, thus being loved and recognized by a large number of customers.
For example, Zoomlion's ZTC300V automotive crane is highly favored by industry customers in the Oman market, mainly due to its excellent performance and efficient operational capabilities.
Zoomlion Heavy Industries focuses on cranes and concrete mixers as its core products. In recent years, countries such as Saudi Arabia and the United Arab Emirates have vigorously promoted infrastructure construction, resulting in strong demand for high-performance concrete mixer trucks in the market.
Zoomlion Heavy Industries seizes this opportunity and provides advanced construction solutions, comprehensive after-sales service, and technical support to local customers.In addition,
Zoomlion Heavy Industries has also developed a highly anticipated off-road tire crane for special oilfield operation scenarios.In recent years,
Zoomlion's performance in the Middle East region has continued to grow.
According to relevant reports, Zoomlion has learned that the company has become the brand with the highest market share in the engineering crane market in the Middle East and Russian regions, and tower cranes also maintain the first place in the market of Türkiye, India, South Korea and other countries and regions,
2: XCMG Group's Deep Layout and Development in the Middle East Market
XCMG Group, as a leading enterprise in China's construction machinery industry, has shown strong development momentum in the Middle East market in recent years.
The Middle East region has a high demand for engineering and construction machinery due to its abundant oil resources and rapidly developing infrastructure construction.
XCMG Group has targeted this market opportunity and conducted extensive and in-depth business layout.XCMG Group's branches in the Middle East are located in key countries such as the United Arab Emirates, Iran, Qatar, and Saudi Arabia.
These branches are responsible for sales and promotion, and can also provide customers with one-stop services.
Specifically, XCMG has established 22 distribution outlets and 7 service spare parts centers in the Middle East region. Each distribution network and service spare parts center serves as a bridge for XCMG to closely connect with local customers, ensuring that XCMG's products can quickly enter the market while providing continuous and efficient service support to customers.In response to the unique desert climate and working conditions in the Middle East region,
XCMG Group has carried out special design and manufacturing of equipment exported to the region. Main products such as cranes, truck mounted cranes, crawler cranes, and high-altitude work platforms can operate stably in high temperature, high dust, and high-intensity environments, meeting the local requirements for high safety and reliability of equipment.In order to further strengthen its influence in the Middle East market,
XCMG Group has also actively carried out a series of market activities. Product promotion meetings, customer visits, and service activities have enabled local customers and agents to have a deeper understanding of XCMG's products and services, thereby enhancing trust and recognition of the XCMG brand.
3: Significant achievements and prospects of Sany Heavy Industry in the Middle East market
In recent years, Sany Heavy Industry's performance in the Middle East market has attracted widespread attention from the industry. With its high-quality products and precise marketing strategy, the company has not only achieved significant sales growth in the region, but also successfully participated in the construction of a series of heavyweight projects, demonstrating its strong market influence and technological strength.From sales data,
Sany Heavy Industry's performance in the Middle East market is remarkable. According to reports, the overseas sales of Sany Heavy Duty Truck Division increased by 55% year-on-year in 2023, which not only exceeded the industry average but also further consolidated its leading position in the global construction machinery market.Entering 2024, its sales momentum did not decrease, with a year-on-year increase of 50% in January, ushering in a "good start" for the new year.Among them,
the large order of over 50 250 ton E-series all terrain cranes and the order of over 80 equipment (over 300 million yuan) from Saudi Arabia are particularly eye-catching.
These achievements are a direct reflection of Sany Heavy Industry's deep cultivation and meticulous work in the Middle East market.Sany Heavy Industry's product layout in the Middle East market involves a comprehensive range of construction equipment, including excavators, cranes, concrete machinery, road machinery, piling machinery, mining equipment, and port machinery.
These diverse product lines not only meet the diverse construction needs of the Middle East region, but also provide strong support for Sany Heavy Industry's market expansion in the region.In terms of channel construction,
Sany Heavy Industry has a wide distribution and service network in the Middle East to manage its business in the region. In addition, Sany Heavy Industry has also established close cooperative relationships with partners such as JD Logistics.
By setting up regional accessory center warehouses in Dubai and providing precise inventory management and logistics tracking services, it has greatly improved the efficiency and service level of equipment supply in Middle East projects.It is worth mentioning that Sany Heavy Industry has actively participated in the construction of a series of major projects in the Middle East region. For example, in the northwest of Saudi Arabia, over 1600 Sany devices participated in the construction of Saudi Future City.
4: Liugong's Deep Layout in the Middle East Market
On October 9, 2023, Liugong officially signed a contract with GARGASH, a well-known family business in the United Arab Emirates, to become its new distributor. This strategic cooperation not only marks LiuGong's further expansion in the Middle East market, but also foreshadows the sustained rise of Chinese construction machinery brands in the global market.As a renowned family business in the Middle East, GARGASH's influence in the political and business sectors of the United Arab Emirates cannot be underestimated.
This cooperation with LiuGong will provide UAE customers with more excellent products and comprehensive solutions.This is not only another sublimation of LiuGong's quality and service, but also a reflection of its deep cultivation and meticulous work in the Middle East market. Since establishing its Middle East company in Dubai in 2010,
Liugong has become one of the more recognized Chinese brands in the UAE market after more than a decade of efforts. Its loaders have been widely praised and its market share has steadily increased.Looking back at LiuGong's development in the Middle East market, Saudi Arabia is undoubtedly an important milestone. As early as 2005,
Liugong successfully secured project cooperation with the large Saudi enterprise AHQ Company.
As one of the top 20 companies in Saudi Arabia, AHQ has a deep background and extremely strict requirements for mechanical equipment procurement.
However, Liugong has won the favor of AHQ with its excellent product performance and customized solutions. From small batch procurement in 2005 to large-scale procurement in 2006, the cooperation between LiuGong and AHQ continued to deepen, ultimately making AHQ one of LiuGong's most powerful agents in the Middle East region.The unique geographical and climatic conditions in the Middle East region have put forward unique requirements for construction machinery and equipment. Liugong keenly captured this market demand and launched targeted and personalized products such as sand proof loaders.
These products not only meet the special needs of the Middle East market, but also become an important means for LiuGong to open up the market and enhance competitiveness.It is worth mentioning that LiuGong's layout in the Indian market also provides strong support for its Middle East strategy. India is located in the South Asian subcontinent, with a superior geographical location and the potential to radiate to markets in the Middle East and even Africa. Liugong laid the foundation and built a factory in India in 2008, and officially opened in 2009. This measure not only enhances LiuGong's production capacity layout in the global market, but also lays a solid foundation for further expanding the Middle East market.
