Nandakumar Pandalai: When there’s trouble in the region, UAE benefits as a stable country

Monday, 18 April 2011 17:01:58 (GMT+2)

Utmost is specialized in rebar cutting and bending. Where do you obtain rebar supplies?

We import rebar from Turkey and we also buy from Emirates Steel Industries and Qatar Steel.

In the UAE, rebar prices are trending slightly above Turkish mills' prices nowadays. Do you think that with the commissioning of new capacities rebar prices in the country will become more competitive?

Exactly; as domestic capacities increase, prices will become more competitive. And we are certainly seeing that now.

How do you assess the impact of the political turmoil in the MENA region on demand in the construction industry.

The UAE is a very stable country. So whenever there is trouble in the region, the UAE benefits from this situation, since people and funding are directed to the UAE. Thus, there is an indirect benefit for the UAE.

Do you think the UAE market is close to saturation point?

A lot of projects were put on hold in 2008 and 2009. However, in 2010 and 2011 many of these projects have been resumed again. The UAE government has taken a lot of steps to ensure the economy moves back into a good position. We certainly saw an improvement in 2010, and in 2011 it looks like we will see a further improvement. Prosperity will return in the future.

Do you think high oil prices will contribute to increased spending in the region, in construction for example?

Apart from oil prices, there are lots of direct investments by the UAE government in the development of the country. And high oil prices will only add to this. As a result, my answer is yes.

Does Utmost also operate in the foreign markets?

We only supply in the UAE.

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