JEDDAH, 11 July 2004 — Saudi Arabia has become the world’s fastest growing single market for security equipment and technology, according to a conference organizer.
The Sept. 11 events and the recent spate of terror attacks in the Kingdom have prompted an unprecedented boom in the industry.
The Saudi crime rate remains low compared to other countries, but the high profile of the terror attacks has meant an enormous growth in interest in increased security. Demand is expanding at an estimated rate of 13 percent per annum, according to local market leaders.
Imports of industrial security equipment into the Kingdom totaled $164 million. Heightened security concerns coupled with new regulations are likely to further stoke demand for security equipment and technology. Thus imports are likely to continue to increase at a rate of 11 percent to 13 percent over the next few years.
Trade-X Arabia, a newly established company for trade exhibitions and conferences, is coming up with a trade expo to highlight the Kingdom’s internal security requirements, according to its CEO Adel A. Shakoor.
“The Jeddah Telecom 2004 expo, a telecommunication exhibition and conference, will go side by side with ASTEX Jeddah 2004, an Arabian security and safety technology exhibition,” he said, adding that the event is scheduled from Dec. 13-16.
The Jeddah Telecom 2004 will be a leading expo on telecommunications in the region, while ASTEX is to be the only international show of its kind dedicated to the Kingdom’s internal security needs.
“We’ll target companies involved in infrastructure and communications systems, security systems and equipment, mobile communications systems, Internet and office technologies and safety technologies and solutions,” Shakoor said.
The security market in the Gulf is estimated to be worth over $500 million, of which more than 25 percent accounts for security for the banking sector. Government, industrial, retail, residential and commercial sectors spend the rest.
In the Kingdom alone, total market size for the industrial and safety sector combined with the fire security sector is estimated to be more than $250 million.
There is an increasing demand for centralized and fully integrated systems covering security, firefighting and building management systems. Demand is also high for access control system with time attendance system enabling managements to keep tighter controls on staff and monitor productivity.
The Middle East has the world’s highest growth rate for security and life-safety equipment. Fire detection and suppression systems are expected to grow around 10 percent. Much of this growth can be attributed to the Kingdom’s review and tightening of regulations following fire disasters in schools, industry and shopping centers.
US manufacturers dominate the fire detection and suppression market with other European manufacturers. The US leads with around 60 percent of the market, the UK 10 percent, followed by France, Germany, Holland, Denmark and Italy, Taiwan, China and other countries that can offer cheaper products.
Nearly 50 percent of all fire extinguishers are manufactured locally. Most leading oil, gas and petrochemical companies however specify fire extinguishers that meet international specifications only. “Since there is very little local production or assembly of security products, there are good opportunities for manufacturing safety and security products locally in partnership with local companies,” he said.
Due to the Kingdom’s decision to tighten security measures, local authorities have increased their spot checks, driving a number of industries to upgrade their old and outdated security and safety systems, creating more demand for state-of-the-art security systems and equipment.
