During my recent visit to the United Arab Emirates, the feeling amongst industry members was that there will be plenty more expansion to come in Dubai and Abu Dhabi.

The economies of the two cities usually fluctuate in turn, with either the tourism-driven Dubai buoyed by a strong global economy, or oil-rich Abu Dhabi benefiting from a weaker economy and the higher oil prices that typically accompany this. Currently, however, both cities are in a strong position to invest in construction and infrastructure. With the global economy gradually improving, Dubai is ready to expand again. And with oil prices expected to recover after the recent drop, oil projects are, for now at least, continuing largely unabated.

Looking further afield, the crane manufacturers and service providers I spoke to gave a very positive outlook for the Middle East region as a whole. Increased investment in infrastructure in Saudi Arabia and the forthcoming World Cup in Qatar have both provided boosts to local industries.

Underpinning this optimism, however, is a realistic, almost cautious attitude — a result of the unbridled growth which took place around 2005 and the subsequent crash that saw investments lost or withdrawn, and projects across Dubai stall and collapse.

David Semple at Manitowoc said: "The market was unsustainable and overheated, with too many buildings planned. Then when the recession began there were problems with funding and projects stalled, some before construction had even begun, and investments were lost. It’s taken five or six years to flush this speculation out of the system."

The Burj Khalifa acts a reminder of this very recent catastrophe — the tower was originally to be named the Burj Dubai but was renamed after the president of the United Arab Emirates and emir of Abu Dhabi, Sheik Khalifa bin Zayed al-Nahyan, provided a $10bn bail-out to save its financially-ailing neighbour, allowing the $1.5bn building to be completed.

With lessons having been learnt, and new legislation in place to moderate new investments and projects, the region is looking forward to a positive period where continued ambition will be tempered by a more experienced, controlled approach — creating a more solid foundation for the future than the shifting sands of ten years ago.

Daniel Searle features editor
Daniel.searle@cranestodaymagazine.com