The demand for insulated cables in the UAE, which is more than Dh2 billion per annum, is expected to grow at five per cent annually in the next five years, according to an industry survey.
"Demand growth will be highest from emirates such as Abu Dhabi and Dubai, which are witnessing a property boom. Continuing infrastructure development, which includes telecommunications besides electrical power distribution, will also fuel demand for insulated cables," Emirates Industrial Bank said in a report.
Production has grown steadily since the inception of cable manufacturing, with the first plant being set up in Dubai in 1979. Two plants were added in Sharjah in 1983 and 1991, followed by one in Abu Dhabi last year.
Dubai has the largest cable manufacturing capacity with Ducab, followed by Tekab and Sharjah Cables Factory.
Ducab has a total capacity to produce more than 20,000 tonnes of power cables per year, with most of it going to producing copper cables.
Tekab of Sharjah has a capacity of 300 cubic metres, while Sharjah Cables Factory has a capacity of 1,400 tonnes.
Early this year, Ducab announced plans to expand production capacity by 50 per cent by the end of 2008, with a Dh660 million investment.
Despite increasing production and capacity, domestic manufacturing has not been able to keep pace with explosive demand. As a result, the greater part of the incremental demand is being met by imports, the report said.
The UAE's cable exports is estimated at Dh9 million per annum, with cables going to Saudi Arabia, Yemen, Jordan, Iran, India, East Africa and the Levant Arab countries.
By Parag Deulgaonkar
© Emirates Today 2007
