New milestone, more growth

Here at Messe Frankfurt Middle East – as with any successful organisation – we constantly set new targets, and this month we reached another milestone for one of our flagship trade shows, Automechanika Dubai.

Recently concluded a couple of weeks ago, Automechanika Dubai 2015 welcomed 30,835 trade buyers from 130 countries, seven per cent more than the previous year.  This is the first time any of our nine exhibitions have attracted more than 30,000 visitors, and clearly underlines the growing influence that Automechanika Dubai has in the wider Middle East and African automotive aftermarket.

Beautyworld Middle East is another of our ‘big three’ events that isn’t far behind Automechanika Dubai in terms of visitor count; celebrating its 20th anniversary this year, Beautyworld Middle East 2015 took place a week before Automechanika Dubai, and attracted 29,973 visitors from more than 120 countries,  five per cent more than in 2014.

Exhibitor growth for both shows is also on an upward trend; Exhibition space grew by 13.5 per cent this year at Beautyworld Middle East, with 1,450 exhibitors from 60 countries out in force, while at Automechanika Dubai 2015, 1,889 exhibitors from 59 countries occupied 17 per cent more space than the previous year.

And while their respective industries – automotive aftermarket and beauty & wellness – are leagues apart, they both share a dynamic emerging region in the Middle East and Africa, where macro-economic developments (government investments, population growth, rising middle class) are driving demand for new products and services.

This demand has led to another trend that we’ve seen recently at Automechanika Dubai and Beautyworld Middle East, where a growing number of exhibitors are investing in the region to boost their physical presence and stay closer to their valued customers.

Investments may be on the smaller scale, such as Beautyworld Middle East exhibitor and French compound fragrance manufacturer, Robertet Group, which opened an office in Dubai in 2014 to help them keep ahead of the curve in regional perfume preferences and trends.

Or they may be on larger scale, as is the case for another Beautyworld Middle East exhibitor, Eurofragance from Spain, which in August 2015 will open an AED 10 million 10,000 sqft Creative Centre in Dubai dedicated to the design and production of fragrances for local tastes and trends.

Capital investments into new regional facilities by Automechanika Dubai exhibitors is even more prevalent; UAE-based ENOC announced at Automechanika Dubai the opening of a 5,000sqm lubricants and grease manufacturing plant in Dubai to complement its existing facility in Fujairah.  The two plants have a total production capacity of 300,000 metric tonnes annually, most of which is exported to more than 60 countries.

Another exhibitor, Canadian parts manufacturer Ecobrex, in May 2015 invested US$15 million into a 70,000sqft warehouse distribution facility in Dubai in partnership with Albelad Auto Parts Trading. The facility has an outbound capacity of 5-8 containers per day, with Ecobrex projecting an annual turnover of US$50 million through the new facility.

The list goes on; OWS, the Saudi-based remanufacturer of spare parts, announced at Automechanika Dubai 2015 the launch of a 2,000sqm remanufacturing plant for AC compressors in the UAE.  OWS predicts a daily output of 200 AC compressors, with a projected initial revenue to reach between AED 55-68 million in the first year.

The surge of trade visitors and exhibitors to Automechanika Dubai and Beautyworld Middle East goes hand-in-hand with increased regional investments from industry players exhibiting at the two trade shows, and presents an effective barometer of market confidence, both now and for many years ahead.  Long may it continue.