II. LEADING TRADE PROSPECTS FOR U.S. BUSINESS FY 95, UNITED ARAB EMIRATES (BEST PROSPECTS IN RANK ORDER) AGRICULTURAL BEST PROSPECTS FOR U.S. EXPORTS TO THE U.A.E. A. Rank: 1 B. Name of Sector: Table Eggs C. PS&D Code: 1993 1994 1995 (million eggs) D. Total Market size 428 445 470 E. Total local Production 207 220 230 F. Total Exports 119 124 130 G. Total Imports 340 355 370 H. Total Imports from U.S. 174 185 195 I. Exchange rate: US$1=U.A.E. DH3.671 Comments: Exports of U.S. eggs to the U.A.E. increased by 400 percent over the past five years. The United States is currently the principal egg exporter to the U.A.E.. This is attributed to the high quality and competitive prices of U.S. table eggs. Holland and Saudi Arabia are main competitors. Locally produced eggs are usually more expensive than imported eggs. Demand for U.S. eggs in the U.A.E. is expected to remain strong due to their high quality and competitive price. A. Rank: 2 B. Name of Sector: Poultry Meat C. ITA or PS&D Code: 1993 1994 1995 (thousand metric tons) D. Total Market size 70 72 74 E. Total local Production 16 20 22 F. Total Exports 20 25 28 G. Total Imports 74 77 80 H. Total Imports from U.S. 9 12 15 I. Exchange rate: US$1=U.A.E. DH3.671 Comments: U.S. frozen poultry, particularly parts enjoy a solid quality reputation. Denmark, France and Brazil are the principal suppliers of poultry meat (whole birds and parts) to the U.A.E.. Brazil and the United States are the dominate suppliers of poultry parts. Local production is expected to grow, but production costs will keep prices high. Parts are mostly imported in two pound trays. The preferred sizes for whole chickens range from 900-1,200 grams per bird. The U.A.E. is an important re-export center for imported poultry, particularly to Iran. A. Rank: 3 B. Name of Sector: Fresh apples C. ITA or PS&D Code: 1993 1994 1995 (thousand metric tons) D. Total Market size 50 55 60 E. Total local Production 0 0 0 F. Total Exports 50 55 60 G. Total Import 100 110 120 H. Total Imports from U.S. 3.1 6 8 I. Exchange rate: US$1=U.A.E. DH3.671 Comments: Because of their very high quality, U.S. origin apples are in great demand in the U.A.E. market. Demand among institutional end users is particularly strong. Iran is currently the principal supplier of apples (mostly golden) to the U.A.E.. Chile, France, Turkey and Lebanon are other major suppliers. Due to improvements in shipping and storage technology, U.S. origin apples are available in the local market virtually year round. INDUSTRY BEST PROSPECTS FOR U.S. BUSINESSES TOTAL U.S. INDUSTRY SECTOR NAME (CODE) IMPORTS IMPORTS 1. Airconditioning and Refrigeration (ACR) 268 80 2. Architectural/Cons/Eng Services (ACE) 761 250 3. Industrial Chemicals (ICH) 369 38 4. Household Consumer Goods (HCG) 710 11 5. Building Products (BLD) 952 100 6. Telecommunications Equipment (TEL) 529 45 7. Oil and Gas field Machinery/Equipment (OGM) 575 259 8. Construction Equipment (CON) 398 159 9. Security & Safety Equipment (SEC) 180 75 10. Pumps, Valves & Compressors (PVC) 310 60 11. Aircraft & Parts (AIR) 325 65 12. Medical Equipment (MED) 95 42 13. Computers & Peripherals (CPT) 164 45 14. Laboratory Scientific Instruments (LAB) 140 35 15. Cosmetics & Toiletries (COS) 198 24 16. Water Resources Equipment (WRE) 321 66 17. Textile Products Made-up (TXP) 154 31 18. Pollution Control (POL) 65 23 19. Electric Power Systems (ELP) 407 49 20. Hotel and Resort Eq. (HLT) 123 12 Note: 1994 estimates (in millions) A. Rank of Sector: 1 B. Name of Sector: Airconditioning and Refrigeration C. Three-letter ITA Industry Sector Code: ACR 1993 1994 1995 D. Total Market Size 195 225 261 E. Total local production 10 11 12 F. Total Exports* 47 55 62 G. Total Imports 232 269 311 H. Imports from U.S. 68 80 94 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: The boom in the U.A.E. construction industry, which started after the end of the Gulf War, has created a strong market demand for airconditioning and refrigeration equipment. The U.A.E. climate is exceptionally hot and humid in the summer and mild in the winter. Airconditioning and refrigeration equipment is used year-round. Therefore, the life expectancy of these units is short, and frequent maintenance is required. In this thriving market, the Japanese have the lead with 43 percent. U.S. airconditioning equipment has an excellent reputation for quality and durability. Although most of the major foreign airconditioning and refrigeration firms are represented in the U.A.E., U.S. firms with new products and technologies can still find capable parties interested in generating new sales. In 1993, the U.S. market share was 35 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Mini Split Airconditioning 123 o Window Airconditioning 74 o Cold Storage Equipment 54 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars. A. Rank of sector: 2 B. Name of sector: Architecture/Construction/Engineering Services C. Three-letter ITA Industry sector code: ACE 1993 1994 1995 D. Total market sales 912 1012 1124 E. Sales by local firms 232 251 271 F. Sales by local firms 0 0 0 G. Sales by Foreign owned firms 680 761 853 H. Sales by US owned firms 215 250 293 I. Exchange rates used US$ 3.671 J. Comments: The size of the market for ACE services in the U.A.E. is well over USD one billion, and U.A.E. receptivity for ACE services from industrialized nations is growing. Most recently, ACE consortiums led by Nihon-Sikie (Japan) and Leo A Daly (US) have been awarded contracts (total value, USD100 million) for the design and consultancy of the construction of a 27 story office complex for ZADCO, a subsidiary of Abu Dhabi National Oil Company (ADNOC). Similarly, Jung Brannen (US) was awarded an ACE contract (total value, USD 100 million) for the design and consultancy of the construction of a 28 story office complex for ADMA, an ADNOC subsidiary. Future projects include the design and construction of a high rise headquarters for Abu Dhabi Investment Authority (ADIA) and seven commercial/residential buildings in Abu Dhabi owned by prominent nationals. In addition, the Abu Dhabi Department of Social Services and Commercial Buildings has plans to invest over USD one billion for the construction of nearly 1,500 buildings to replace the old 4-6 story buildings. Strong competition comes from British, French and Canadian ACE firms. In 1993, the U.S. market share was 32 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Petrochemical engineering services 350 o Defense projects 150 o Engineering services design 125 o Theme parks 100 o Commercial buildings A/C/E/ services 50 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. dollars. A. Rank of Sector: 3 B. Name of Sector: Industrial Chemicals C. Three-letter ITA Industry Sector Code: ICH 1993 1994 1995 D. Total Market Size 257 277 302 E. Total local production 0 0 0 F. Total Exports* 86 92 98 G. Total Imports 343 369 400 H. Imports from U.S. 33 38 44 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: The U.A.E. is spending over USD 10 billion to expand its crude oil production capacity, and about USD three billion to augment its water and electricity production. This expansion is going to create an additional demand for chemicals. The majority of chemical purchases are made through public tenders or through direct bid invitations to prequalified suppliers. The U.A.E. market is highly receptive to U.S. chemical products. The major U.S. competitors are U.K., Belgium, France and the Netherlands. The Abu Dhabi Water and Electricity Department (WED) is currently evaluating offers from international companies for the Jebel Dhana and Delma Island desalination plant. Total cost of the project is approximately USD 20 million. In 1993, the U.S. market share was 13 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Inorganic Chemicals 165 o Organic Chemicals 54 o Paints, Pigments 50 o Photo Chemicals 13 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars. A. Rank of Sector: 4 B. Name of Sector: Household Consumer Goods C. Three-letter ITA Industry Sector Code: HCG 1993 1994 1995 D. Total Market Size 358 403 456 E. Total local production 1 1 1 F. Total Exports* 265 307 356 G. Total Imports 622 709 808 H. Imports from U.S. 10 11 13 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: The U.A.E. enjoys one of the world's highest per capita incomes, and a large portion of disposable income is spent on household appliances. The local market for household consumer goods is comprised mainly of home-bound expatriates and inbound tourist shoppers mainly from the CIS countries. Seventy-five percent of the 2.26 million population are expatriates, mainly from India, Pakistan, Philippines and other Arab countries. Both groups of buyers find the variety of goods on offer, and the prices, very attractive. Most major brands in the world are available. Major competitors are Japan, China and Italy. U.S. market share in 1993 fell to three percent from thirteen percent in 1992. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Non-kitchen/Household 120 o Kitchen appliances 63 o Lawn and garden equipment 44 o Home furnishings 35 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars. A. Rank of Sector: 5 B. Name of Sector: Building Products C. Three-letter ITA Industry Sector Code: BLD 1993 1994 1995 D. Total Market Size 820 925 1045 E. Total local production 140 164 192 F. Total Exports* 170 191 213 G. Total Imports 850 952 1066 H. Imports from U.S. 89 100 112 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: Building construction projects in the U.A.E. are undertaken by the private sector, Public Works Departments (PWD), the municipalities of the various emirates, the U.A.E. Armed Forces, the Ruler's private departments and the Federal Ministry of Public Works and Housing (PWH). The local market demand for building products is growing markedly as public and private sectors float tenders for the construction of diversified commercial, residential and institutional buildings. Total U.A.E. investment in office/residential buildings during 1994 is expected to reach USD one billion. Major U.S. competitors are Japan, U.K., Germany and China. In 1993, the U.S. market share was eleven percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Lumber 262 o Plumbing Products 210 o Lighting products 200 o Building Hardware 110 o Architectural Glass 135 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars. A. Rank of Sector: 6 B. Name of sector: Telecommunications Equipment C. Three-letter ITA Industry sector code: TEL 1993 1994 1995 D. Total market size 365 401 441 E. Total local production 0 0 0 F. Total exports* 120 128 141 G. Total imports 485 529 582 H. Total imports from U.S. 40 45 50 I. Exchange rates used US$ 3.671 J. Comments: The telecommunications industry has experienced consistent growth over the last ten years, averaging about USD 200 million a year. The Emirates Telecommunications Corporation (ETISALAT) wants the newest and the best and has substantial capital for investment. Recent major development programs include investment USD 500 million for the expansion of switching systems; public telephone lines; ISDN and fiber optics. ETISALAT is currently evaluating the offers made by international companies for the purchase of its own satellite at a project value of approximately USD 100 million. This year ETISALAT is introducing Groupe Speciale Mobile (GSM), linking U.A.E. mobile phone customers to similar global networks. Apart from ETISALAT, the Abu Dhabi National Oil Company (ADNOC) and its subsidiaries operate their own independent on-shore/off-shore telephone systems. ZADCO, an ADNOC subsidiary, has invited bids from eleven international contractors, five of which are from U.S., for the replacement of its existing scada/telemetry system (project value = USD 75 million). ZADCO plans to prepare a listing of international vendors by the end of the year. U.S. companies face strong competition from Japanese, British and French companies. In 1993, the U.S. market share was 11 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Cellular telecommunications equipment 60 o Fiber optic/cable transmission equipment 45 o Packet switching systems 40 o Voice processing equipment and systems 17 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. dollars. A. Rank of sector: 7 B. Name of sector: Oil and Gas-Field Machinery & Services C. Three-letter ITA industry sector code: OGM 1993 1994 1995 D. Total market size 490 539 590 E. Total local production 0 0 0 F. Total exports* 32 36 40 G. Total imports 522 575 630 H. Total imports from U.S. 235 259 285 I. Exchange rates used US$ 3.671 J. Comments: The U.A.E. possesses about ten percent of total proven world oil reserves, approximately 100 billion barrels. Gas reserves, at 314,000 billion cubic feet, are also among the world's largest. Abu Dhabi's four year economic development plan calls for boosting crude oil production capacity to 3.5 mbpd. At least USD three billion will be spent on new oil and Gas field projects and upgrading existing facilities between 1994-1996. Among the prestigious projects under consideration in the emirate of Abu Dhabi are: the Ruwais Refinery expansion (USD 1.2 billion); the off-shore pilot gas injection (USD 200 million); a refinery waste management (USD 100 million); a gas pipeline project linking on-shore Bab gas facilities to Taweelah power generation plant (USD 150 million); Thammama C & F gas gathering & gas injection (USD180 million); SCADA telemetry instrumentation (USD 75 million) and the construction of two liquefied gas storage tanks (USD 60 million). Although the U.S. dominates the market for oil and Gas field equipment in the U.A.E., there is strong competition from Japanese and European suppliers. In 1993, the U.S. market share was 48 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Offshore oil/gas equipment 180 o Oil and Gas field chemicals 50 o Pipeline construction equipment 40 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of USD. A. Rank of Sector: 8 B. Name of Sector: Construction Equipment C. Three-letter ITA Industry Sector Code: CON 1993 1994 1995 D. Total Market Size 258 281 307 E. Total local production 0 0 0 F. Total Exports* 101 117 135 G. Total Imports 359 398 442 H. Imports from U.S. 144 159 176 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: The current fast pace of construction and reconstruction activity in the U.A.E. will contribute to an increase in construction equipment imports. The U.A.E. will spend USD five billion for civil works projects over the next 2-3 years. Local authorities plan over 500 development projects, including multi-story commercial/residential buildings, residential houses, new hospitals, schools and 5 star hotels. The major U.S. competitors are Japan, Germany, Belgium and France. The link of the local currency to the dollar offers the opportunity for further substantial penetration of U.S. heavy duty construction machinery and attachments, provided that U.S. suppliers support their sales efforts by establishing their physical presence in the U.A.E. In 1993, the U.S. market share was fifty six percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Construction Equipment - heavy 111 o Earthmoving machinery 99 o Road Construction Equipment 72 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars. A. Rank of sector: 9 B. Name of sector: Security & Safety Equipment C. Three-letter ITA industry sector code: SEC 1993 1994 1995 D. Total market size 120 135 149 E. Total local production 0 0 0 F. Total exports* 40 45 49 G. Total imports 160 180 198 H. Total imports from U.S. 65 75 83 I. Exchange rates used US$ 3.671 J. Comments: The U.A.E. is becoming more aware of the need to provide security and safety protection for its military and industrial installations, government ministries, banks, and public and private buildings. Equipment for applications such as access control, x-ray screening, fire fighting, and smoke detection have good growth potential. Market sources have indicated that the annual overall safety and security market in the U.A.E. is worth over USD 160 million. Projects include supply of security and safety systems to: the planned new head office buildings of the oil companies; upgrade security at Ruwais and Umm Al Nar refineries; the U.A.E. Ministry of Interior, the Coast Guard, the Port Authorities and other private and public installations. Both EPA and ISO 9000 standards are applied. U.S. companies face tough competition from Italy, the U.K. and France. In 1993, the U.S. market share was 40 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Fire fighting equipment 45 o Access control systems 24 o Security systems - residential 20 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. dollars. A. Rank of sector: 10 B. Name of sector: Pumps, Valves and Compressors C. Three-letter ITA industry sector code: PVC 1993 1994 1995 D. Total market size 240 276 304 E. Total local production 0 0 0 F. Total exports* 35 34 38 G. Total imports 275 310 342 H. Total imports from U.S. 55 60 70 I. Exchange rates used US$ 3.671 J. Comments: Recently Abu Dhabi Water and Electricity Department (WED) awarded a USD 40 million contract to a consortium led by an Italian company for the construction of a 143 km long Taweelah-Al 2ain water pipeline. The contract calls for the supply of pumps, valves and compressors worth approximately USD100 million. In addition, the Abu Dhabi National Oil Company (ADNOC) constantly requires various types of pumps, valves and compressors for the use in off-shore and on-shore oil facilities. At least USD three billion will be spent on new oil and Gas field projects and to upgrade existing facilities between 1994-1996. The Government has earmarked USD two billion for the development of its water desalination capacity during the years 1994/1995. The U.S. dominates the market for oil and gas field equipment in the U.A.E., including oil/Gas field pumps, valves and compressors. U.S. standards along with ISO 9000 apply. U.S. companies face severe price competition from Italian and British companies, which is often due to recent currency devaluations in those countries. In 1993, the U.S. market share was 20 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Pumps - Industrial 65 o Valves - regulating & safety 55 o Pumps - Water 38 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. dollars. A. Rank of sector: 11 B. Name of sector: Aircraft & Parts C. Three-letter ITA industry sector code: AIR 1993 1994 1995 D. Total market size 237 300 345 E. Total local production 0 0 0 F. Total exports* 38 25 30 G. Total imports 275 325 375 H. Total imports from U.S. 50 65 72 I. Exchange rates used US$ 3.671 J. Comments: In 1996 Dubai-based Emirates Airlines will begin taking delivery of seven Boeing 777 aircraft (with options for seven more), powered by Rolls Royce engines. In 1992 Gulf Air purchased six Airbus 340 aircraft worth USD500 million, with an option of six more, powered by G.E. engines. In addition, the Emiri Flight Directorate of Abu Dhabi plans to purchase two wide body aircraft. The U.A.E. airforce is considering replacement of engines in its Mirage 2000 fleet. In addition, price and availability information has been requested for 30 F-15 and F-16 fighter aircraft. McDonnell Douglas has sold 28 Apache helicopters to the U.A.E. Airforce. Similarly, United Technologies/Sikorsky Aircraft Division is contending for the supply of 30 Black Hawk helicopters to the U.A.E. Armed Forces. The U.A.E.'s planned frigate program may also involve supply of multi-purpose naval helicopters. Major competition is from France, Germany, Spain, and Italy. In 1993, the U.S. market share was 16 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Aircraft: Large Transport 200 o Engines: aircraft 55 o Aircraft parts 31 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. dollars. A. Rank of Sector: 12 B. Name of sector: Medical Equipment C. Three-letter ITA industry sector code: MED 1993 1994 1995 D. Total market size 70 77 85 E. Total local production 0 0 0 F. Total exports* 15 18 25 G. Total imports 85 95 110 H. Total imports from U.S. 38 42 46 I. Exchange rates used US$ 3.671 J. Comments: The healthcare system in the U.A.E. comprises public and private sectors. The public sector is administered by the Federal Ministry of Health based in Abu Dhabi and the Department of Health and Medical Services based in Dubai. Government expenditures rose from USD 256 million in 1987 to USD 489 million in 1991. During the next two years, at least USD 500 million will be spent on construction and equipment for several clinics and hospitals in the U.A.E., with emphasis on providing services to the remote areas. The U.A.E. Ministry of Health in coordination with Abu Dhabi Public Works Department is planning to construct an advanced therapy and assessment center in Al Ain; a 300-bed hospital in Medinat Zayed; and a 200- bed hospital in Ajman. Planned also are the expansion of the Abu Dhabi Corniche Maternity hospital, the upgrade of several government owned hospitals in the Northern Emirates, and a pediatric and handicapped center in Al Ain. The U.S. has a particularly strong market position in the medical diagnostic equipment sector due to its advanced technology. However, much of the equipment sold in the U.A.E. is sourced from the European manufacturing subsidiaries of U.S. firms. French, British, German and Japanese companies pose major competition in diagnostic and orthopedic equipment. In 1993, the U.S. market share was 45 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Medical products, disposable 35 o Diagnostic equipment 23 o Orthopedic equipment 15 o Lasers, medical 9 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of USD. A. Rank of Sector: 13 B. Name of Sector: Computers and Peripherals C. Three-letter ITA Industry Sector Code: CPT 1993 1994 1995 D. Total Market Size 118 133 150 E. Total local production 0 0 0 F. Total Exports* 28 31 34 G. Total Imports 146 164 184 H. Imports from U.S. 41 45 50 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: Heavy discounting by distributors and dealers has helped to keep sales of personal computers buoyant. Computer utilization is on the rise and the market for more powerful computers is growing. Both government and business are shifting from mainframes to more flexible, faster and cheaper micro computers or personal computers in networking environments. U.S. computer manufacturers are looked upon as market leaders and will maintain their edge to the extent that they continue to be able to introduce state-of-the-art technology and products at competitive prices. Major competitors are Japan, U.K., Netherlands, Taiwan and Singapore. U.S. market share in 1993 was thirty-five percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Personal Computers 42 o Workstations 27 o Computer monitors 24 o Printers, computer 23 o LAN equipment 20 o Modems 14 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S.Dollars. A. Rank of sector: 14 B. Name of sector: Laboratory & Scientific Instruments C. Three-letter ITA industry sector code: LAB 1993 1994 1995 D. Total market size 100 110 121 E. Total local production 0 0 0 F. Total exports* 25 30 33 G. Total imports 125 140 154 H. Total imports from U.S. 28 35 38.5 I. Exchange rates used US$ 3.671 J. Comments: The UAEG agencies are increasingly concerned about environmental issues, most particularly related to: pollution caused by crude oil production, drinking water contamination, and pollution at sea due to illegal dumping and navigation accidents. To address the problem, the UAEG established the Federal Environmental Agency in 1993 (FEA). The Abu Dhabi National Oil Company (ADNOC) has also established the Environmental Task Force to handle oil related environmental and pollution problems. Major end users of laboratory and scientific instruments include oil companies, municipal authorities, water and electricity departments, and civil aviation and port authorities. Recently, the Abu Dhabi Food and Environment Center called for a tender for the supply of physical and chemical analysis instruments. Similar upgrade plans are being developed by the Dubai Municipality. Major competitors are French, Scandinavian, Swiss and British companies. In 1993, the U.S. market share was 22.4 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Electronic laboratory instruments 30 o Chemical analysis instruments 20 o Physical analysis instruments 17 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. dollars. A. Rank of Sector: 15 B. Name of Sector: Cosmetics and Toiletries C. Three-letter ITA Industry Sector Code: COS 1993 1994 1995 D. Total Market Size 129 138 147 E. Total local production 14 15 16 F. Total Exports* 69 76 84 G. Total Imports 184 199 215 H. Imports from U.S. 22 24 26 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: Innovative new product formulations and increased promotional activity characterize this highly competitive market. Opportunity for further development and expansion exist especially for hypo-allergenic and therapeutic skin care products. Demographic trends indicate an ageing population which offers potential further growth for anti-ageing products. Cosmetic creams which offer recuperative or restorative skin care must be approved by the Ministry of Health before market entry into the U.A.E. Major competitors are France, U.K. and Germany. In 1993 the U.S. market share was seventeen percent. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Cosmetics 40 o Perfumes 33 o Skincare products 24 o Haircare products 20 o Cosmetics and toiletries - Men 17 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars. A. Rank of sector: 16 B. Name of sector: Water Resources Equipment C. Three-letter ITA industry sector code: WRE 1993 1994 1995 D. Total market size 263 290 313 E. Total local production 0 0 0 F. Total exports* 43 31 35 G. Total imports 306 321 348 H. Total imports from U.S. 61.2 66 69 I. Exchange rates used US$ 3.671 J. Comments: U.A.E. imports of water desalination equipment during 1993 amounted to USD 306 million, a 20 percent increase over 1992 (USD 58.1 million). Demand for multi-stage-flash and reverse osmosis water desalination equipment is dependent on the approval of new projects and/or the routine replacement of existing old plants. The government has earmarked USD two billion for the development of its water desalination capacity during the years 1994/1995. With the allocation of at least USD two billion for the construction of two new power/desalination plants in the Emirate of Abu Dhabi, USD 500 million for one in Jebel Ali, and expenditures to upgrade existing plants in Sharjah, Ras al-Khaimah and Ajman over the next two years, market potential for state-of-the-art water desalination equipment from renowned U.S. manufacturers is growing rapidly. The final phase "C" of the Abu Dhabi's Taweelah Power/Water Desalination plant calling for the power generation of 450 MW and water desalination production capacity of 100 mgpd is planned to be executed in 1996. U.S. companies face tough competition from French, Italian, British, German and Japanese companies. In 1993, the U.S. market share was 20 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Desalination equipment 150 o Water pumps 38 o Water filtration equipment 20 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. dollars. A. Rank of Sector: 17 B. Name of Sector: Textile Products Made-Up C. Three-letter ITA Industry Sector Code: TXP 1993 1994 1995 D. Total Market Size 116 126 137 E. Total local production 8 9 10 F. Total Exports* 36 39 42 G. Total Imports 143 156 169 H. Imports from U.S. 29 31 33 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: U.S. textile products are well received by the local market. U.S. carpets have a very good reputation for high quality and durability. Demand for home office and hotel furnishings is expected to increase in the next few years, due to the completion of numerous residential and commercial projects including a number of new hotel to be constructed in the emirate of Dubai. The refurbishment market will continue to provide the bulk of the demand for floor coverings, curtains and other furnishings (U.S. made carpets dominate the market share). Dubai is also the ideal distribution base for to supply textile products to the mideast region. The main competitors in this industry are Belgium, Taiwan and Thailand. In 1993, the U.S. market share was 20 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Carpet and floor coverings 37 o Draperies and curtains 27 o Furnishings: Textiles 23 o Linens and Towels 17 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars. A. Rank of Sector: 18 B. Name of Sector: Pollution Control C. Three-letter ITA Industry Sector Code: POL 1993 1994 1995 D. Total Market Size 54 58 62 E. Total local production 0 0 0 F. Total Exports* 7 7 8 G. Total Imports 61 65 70 H. Imports from U.S. 23 25 27 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: In 1993, the U.A.E. formed a new Federal Environmental Agency (FEA). It will have the power to draft laws, carry out studies and propose general environmental policies in the country. A major focus is being put on hazardous waste management problems. At present, there is no adequate method for the proper control and treatment of hazardous waste including oil sludge and asbestos which had been previously disposed of in land fills. U.S. suppliers should benefit from the new environmental legislation which are expected to be introduced in the next three years. The UAEG realizes that there is a pressing need to build waste treatment plants in country. U.S. pollution control equipment enjoy an excellent reputation for quality and product durability in the U.A.E. Imports supply 100 percent of this sector, mainly from USA (42%), Germany (30%) and U.K. (10%). In 1993, the U.S. market share was 42 percent. There are no significant regulatory/demand issues impacting the U.A.E. market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Solid Waste Management Equipment 31 o Water Treatment 16 o Air Pollution Control/Measuring Equipment 13 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars. A. Rank of sector: 19 B. Name of sector: Electric Power Systems C. Three-letter ITA Industry sector code: ELP 1993 1994 1995 D. Total market size 325 360 396 E. Total local production 0 0 0 F. Total exports* 45 47 53 G. Total imports 370 407 449 H. Total imports from U.S. 46.3 49 54 I. Exchange rates used US$ 3.671 J. Comments: U.A.E. power demand is projected to increase to 6,900 MW by 1999, up sharply from 3,850 MW in 1993. Electricity consumption is rising 10 percent annually. Existing expansion plans include three additional power/desalination plants at Taweelah and Al-Mirfa in Abu Dhabi, and Jebel Ali G (Dubai) currently under construction by ABB-Asea Brown Boveri (Switzerland), Siemens (Germany) and Ansaldo (Italy) respectively. These will add 550 megawatts of power and 200 million gallons per day of water to the existing levels of production. The emirate of Sharjah is expected to award a contract for the addition of a frame six gas turbine at the 630 megawatts Layyah station by early 1994. With the allocation of at least USD three billion for the construction of two new power/desalination plants in the Emirate of Abu Dhabi, USD 500 million for one in Jebel Ali, additional funds to upgrade of existing plants in Sharjah, Ras al-Khaimah and Ajman over the next two years, market potential is growing rapidly for state-of-the-art electric power generation equipment from renowned U.S. manufacturers. Major competitors include companies from Switzerland, Germany, Italy, the U.K. and Japan. In 1993, the U.S. market share was 12 percent. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Turbines 183 o Electrical generating equipment 78 o Switchgear motors/engines 52 o Transmission distribution equipment-electrical 55 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of USD. A. Rank of Sector: 20 B. Name of Sector: Hotel and Restaurant Equipment C. Three-letter ITA Industry Sector Code: HTL 1993 1994 1995 D. Total Market Size 85 93 101 E. Total local production 0 0 0 F. Total Exports* 27 30 34 G. Total Imports 112 123 135 H. Imports from U.S. 11 12 13 I. Exchange rates used US $ 1 = Dhs. 3.671 J. Comments: Dubai is the main exhibition center for the Gulf Cooperative Countries (GCC). Dubai is currently experiencing a hotel construction boom. Demand for hotel and restaurant equipment in the U.A.E. will remain high as older establishments upgrade and new ones seek to equip themselves with the most up-to-date equipment. The current U.S. market share for hotel and restaurant equipment is small. However, a number of hotels starting operations shortly either belong to, or are associated with American hotel chains, should enhance prospects of supply from U.S. sources. U.S. products have a very good reputation for quality but will have to be more competitive in price to increase market share. Other major competitors are Italy, Germany, U.K., Japan and Taiwan. Compared to 1992, U.S. market share fell from twenty-one percent to thirteen percent in 1993. There are no regulatory/demand issues impacting the market. The most promising subsectors within this sector, with the estimated 1995 total market size of each: o Food Preparation Equipment: Institutional 58 o Restaurant Equipment 37 o Laundry Equipment: Commercial 4 o Vending Machines 1 *NOTE: Reexports indicated where total imports exceed market size. All figures are estimates in millions of U.S. Dollars.