New Beginnings and Dynamism in the Middle East – BOMAFA GCC

New Beginnings and Dynamism in the Middle East – BOMAFA GCC

 

In January 2024, we opened our new branch, BOMAFA GCC, in Dubai. The abbreviation stands for Gulf Cooperation Council. 

 

Together with our local partner, Dr. Kazemi, we are managing our presence in the Middle East from this important hub to fully tap into the potential of this dynamic region. Dubai offers ideal conditions for us as a service-oriented manufacturer, with proximity to customers being our top priority.

 

How do we assess the markets?

The demand for valves in GCC countries, particularly in petrochemicals, refineries, and power generation, is significant and continues to grow. This growth is further driven by ongoing and planned projects in the oil and gas sectors, water treatment, and industrial plants.

 

The valve market in this region is expected to grow at an average annual rate (CAGR) of over 5% from 2024 to 2029. 

 

Saudi Arabia is the leading market, especially due to substantial investments in oil and gas infrastructure, water and sanitation projects, and the expansion of industrial facilities. Investments of over USD 66 billion in water and sanitation projects also contribute to the high demand for industrial valves in Saudi Arabia. Market data suggests that this trend will continue.

 

Dr. Kazemi states, “Even though the exact number of new facilities built each year varies, it is clear that the GCC countries are heavily focused on expanding their gas, gas turbine, and combined-cycle power plant capacities to meet the growing electricity demand and improve efficiency.”

 

Refineries and Petrochemical Plants in GCC Countries

 

The construction and planning of petrochemical plants and refineries in the Gulf Cooperation Council (GCC) countries reflect the region's strategic focus on expanding its energy and industrial capacities.

 

Significant investments are being made in refineries across all countries:

 

Saudi Arabia: Saudi Aramco has expanded its refinery capacities through projects like the repeatedly upgraded Ras Tanura refinery. The Rabigh refinery, in partnership with Sumitomo Chemical, has grown into a large integrated petrochemical complex. Other major refineries include Yanbu and Jubail, each with a capacity of around 400,000 barrels per day.

 

United Arab Emirates: The Ruwais refinery, operated by the Abu Dhabi National Oil Company (ADNOC), is one of the largest and has been expanded multiple times to increase its capacity and integrate petrochemical production.

 

Kuwait: The Mina Al Ahmadi refinery, operated by the Kuwait National Petroleum Company (KNPC), has undergone significant modernization. Its capacity has been increased, and operations have been improved.

 

Investments in Petrochemical Plants

 

Saudi Arabia: The country underscores its leadership role in the region with joint ventures between Saudi Aramco and SABIC, focusing on expanding chemical and polymer production. One example is the SATORP project in Jubail, which produces various petrochemical products alongside refined fuels.

 

UAE: The Borouge complex in Ruwais is a key petrochemical plant that produces a wide range of polymers. It is closely integrated with the Ruwais refinery to enhance efficiency and performance.

 

The number of petrochemical plants and refineries built and planned each year varies significantly, depending on national investment plans and global economic conditions. However, in every GCC country, several projects are initiated or completed each year, driven by national development strategies and the goal of advancing energy diversification.

 

These projects are part of broader strategic plans to reduce dependence on crude oil exports by increasing the value of oil and gas through refined products and petrochemicals.

 

We believe this trend will continue as countries seek to take on a leading role in the global energy market.

 

Gas and Combined-Cycle Power Plants in GCC Countries

 

The number of gas and combined-cycle power plants built annually in GCC countries varies significantly, depending on ongoing and planned projects. The region, comprising Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain, is actively expanding its power generation capacity, particularly through gas-based and combined-cycle power plants.

 

Some notable projects highlight this growth:

 

United Arab Emirates: The Fujairah F3 power plant project, with a capacity of 2,400 MW, is one of the largest in the region, utilizing highly efficient combined-cycle gas power plant technology. It is expected to be fully operational by 2023.

 

Saudi Arabia: The country is investing heavily in gas infrastructure. An example is the tender for two solar PV IPPs by SPPC, with a total capacity of 1,500 MW, showcasing ongoing expansion.

 

Qatar: The Facility E IWPP project, one of Qatar’s largest energy projects, is planned with a capacity of 2,300 MW and is expected to be operational by 2027.

 

UAE Aluminum Industry: Siemens is developing a highly efficient gas and steam turbine power plant at Emirates Global Aluminium's Jebel Ali smelter to increase efficiency.

 

The exact number of power plants built each year varies depending on the country and energy policies. There may be a few large projects or several smaller ones per year.

 

Conclusion

In conclusion, the GCC countries are also focusing heavily on expanding their capacities in gas and combined-cycle power plants to meet growing electricity demand and improve energy efficiency.

 

For BOMAFA, these are very good prospects. The markets are present and growing.

 

Our new branch in Dubai will focus on the following areas:

 

Through targeted sales and marketing activities, we aim to increase the visibility of our products in the region and acquire new customers.

 

We also achieve this by increasing customer proximity. With our local team led by Dr. Kazemi, we can respond more quickly and flexibly to our customers’ needs on-site and provide first-class service. Additionally, we are seeking new partnerships with local companies to leverage synergies and grow together.

 

We are learning more about the requirements and conditions of the markets in the Middle East to tailor our services and product innovations specifically to them.

 

BOMAFA stands for quality and innovation from Germany. Our valves are characterized by the highest precision, durability, and innovation. With these strengths, we aim to succeed in this fast-growing and demanding future market.n this fast-growing and demanding future market.