Chinese companies step up business activity in Dubai as financial crisis hits home markets

One exhibitor, who wished to remain anonymous, said that his company's plan was to explore greater opportunities in the Gulf region as Plan B in case Chinese business climate turns bearish.

Satish Khanna, General Manager of Al Fajer Information and Services, co-organizer of the exhibitions said Chinese companies' participation in had increased from 24 for Teknotube 2007 to 87 and from 80 for Arabplast in 2007 to 200. Khanna attributed the dramatic increase to Dubai's consolidation as the hub for the entire Asian market.

"Tubes, plastics, industrial machinery and metals manufactures from China are increasingly saying that Middle East is on their list and they have to serve their customers at a closer proximity as these customers are more sustainable and have more money," said Carol Zhao, Export Dept. Manager, Deyili, which is participating at Arabplast Show.

Arabplast offers visitors access to a wide spectrum of technological innovations in the plastics, packaging, rubber, chemical and polymer and petrochemical, while Teknotube displays latest solutions in tubes and pipes, industrial machinery & machine tools, metal working machinery and welding machinery industries.

Zhao added, "We are here to find new customers because we consider Dubai the ideal gateway to the Middle East and North Africa regions. Chinese businesses who are fully dependant on exports are suffering now. Our strategy is to strike a balance between our domestic market and external markets. We are here to find a safer market if the crisis at home deepens."

Pan Guanglin, General Manager, Guanda Plastics Machinery Co participating in Arabplast, added, "This is our first participation in Arabplast. Our major markets are South America and Asia." Guanglin denied that China was affected by the crisis but admitted they were facing a tough year and have plans to open offices in the region for further expansion."

Ming Tong, Vice President, Liaoning Large-Scale Steel Pipe Co participating in Teknotube, said, "This is our first participation. We were operating in the region through distributors. Our major clients are oil and gas companies. China is deeply affected by the crisis and Dubai is definitely a great market to invest in as a pre-cautionary measure."

Vivy Yang, Manager, Guangzhou Junjia Steel Tube Manufacturer Co participating in TeknoTube, said, "The tube industry in China in affected by the crisis like every other industry. Our sales strategy is 50% domestic market against 50% external markets. The Middle East constitutes just 5% of our external markets and we are working on increasing this percentage. The situation will be tougher this year and we are getting ready to explore more lucrative markets with higher liquidity, But China will remain our key market for years to come."

Khanna concluded, "A number of global players have announced their expansion strategies, including the German Arburg that has opened its regional headquarters in Dubai. Also, Chinese companies are making entry into the Middle East market despite the credit crunch because they consider this market less risky in the long run, compared to other fluctuating markets."

Arabplast and Tekno/Tube Arabia 2009 have attracted 900 exhibitors representing 34 countries at a total area of 35,000 sq. m. with an increase of 25%.