The UAE LED market has grown by 20% year-on-year, with the market size exceeding 1.4 billion yuan in 2019

As the leading economic country in the Middle East, the UAE has trade relations with 179 countries and regions. It is known as the "economic engine" of the Gulf region, and foreign trade occupies an important position in its economy. In recent years, China's merchandise exports to the UAE have grown strongly. According to statistics, over the past ten years since China joined the WTO, exports to Afghanistan have increased nearly sevenfold, and the growth rate is much higher than China's exports to other countries in the Middle East.

After several years of real estate bubble crisis, the UAE's construction industry has entered a stage of full recovery. With many projects being launched in large numbers, the lighting market is full of spring. At the same time, due to the increasing population and rapid urbanization in the UAE, in order to control carbon dioxide emissions and save energy, the UAE has begun to pay attention to environmentally friendly products.

According to relevant data, in 2012, the total market size of LED lights in the UAE was approximately US$46 million to US$54 million, with sales equivalent to 1 million to 1.2 million US dollars. In 2013, the share of LED lighting in the UAE was approximately US$60 million to US$68 million. In 2014, the size of the LED lighting market in the UAE increased by 23% compared to the previous year, and the market share of LED lighting was approximately US$78 million to US$82 million. Some companies such as Philips, General Lighting Co., GE Lighting and Osram maintain their leading positions, accounting for more than 60% of the market share in 2014.

In the first quarter of 2015, China’s LED lighting exports to the UAE totaled approximately US$70.916 million, accounting for 1.9% of China’s total exports in the first quarter. The top three major products in the UAE were ceiling lights, LED downlights, and LED panel lights, accounting for 23.8%, 19.7%, and 17.6% respectively.

The UAE LED market is showing strong growth. It is expected that the market size will reach approximately US$224 million (equivalent to approximately RMB 1.43 billion) by 2019, and the compound annual growth rate from 2014 to 2019 will reach 20%. Philips continues to dominate the UAE LED lighting market, followed by General Lighting Co., GE Lighting and Osram.

What are the government’s positive measures to promote the LED market demand in the UAE?

1. The UAE government announced energy-saving regulations on lighting products to prohibit the sale of inefficient light bulbs and ensure the promotion and use of energy-saving, safe and high-quality light bulbs. The effective date of this regulation is July 1, 2014.

2. Emirates Standardization and Meteorology Agency (ESMA): ①ESMA has determined the certification and registration requirements for lighting products in the UAE. ② Relevant parameter requirements for lighting products have been determined, including electrical safety, energy efficiency, functionality and safe disposal. ③The packaging of all lighting products will display energy labels to show details about energy efficiency levels. ④Lighting products that do not comply with regulations are not allowed to enter the UAE market.

3. The new regulations stipulate that inefficient lamps will be phased out starting from July 1, 2014, and the recycling and disposal methods will be standardized. The UAE leads the entire Middle East in the implementation of lighting standards and regulatory provisions. In accordance with the directives of the UAE Standardization and Metrology Authority (ESMA), the sale of standard incandescent light bulbs in the UAE was officially banned on December 31, 2014.

The market potential is huge

Sales of LED lighting solutions in the UAE are expected to increase significantly due to new regulations in the UAE that restrict the import and sale of incandescent lamps in residential areas. Implementation of the new regulations is expected to save nearly $200 million on annual energy bills and reduce carbon emissions equivalent to taking 165,000 cars off the road each year. At the same time, it can also be seen that the LED market potential in the UAE is still great. Dubai, United Arab Emirates, will host the World Expo in 2020, which will bring continued growth and huge demand to the development of the LED industry. With the implementation of the "Belt and Road" strategy, the relationship between China and the UAE will become closer and more cooperation will be achieved in infrastructure.