Research and Markets: By 2013, the District Cooling Market is Expected to Have an Additional Capacity of 4.5 Million Tonnage of Refrigeration (TR) inside the Middle East Region

DUBLIN--(Business Wire)--
Research and
Markets(http://www.researchandmarkets.com/research/b8420d/analysis_of_the_di)
has announced the addition of Frost & Sullivan's new report "Analysis of the
District Cooling Market in the Middle East Region" to their offering.

District Cooling Market in the Middle East Propelled by High Costs of Power

In a region where the temperature frequently exceeds 45 degree Celsius and
air-conditioning requirements consume 70 percent of the power during peak
electricity demand; district cooling is emerging as the most viable cooling
solution in the Middle East. As power shortage is rampant in this region, the
governments are turning to district cooling to cool buildings, as it is a less
expensive and greener alternative to air conditioning. This solution can not
only mitigate the power crisis in the Gulf Cooperation Council (GCC) region, but
also help reduce carbon footprints through increased energy efficiency and lower
CO2 emissions. With greater involvement of the government, the market is
expected to become more organized, populated, and competitive. Multinational
companies will be attracted to this market due to the prospects presented by the
investor-friendly laws, improved standards of living, and high disposable
income, which has set off a retail boom in the region. With the GCC becoming
home to the biggest shopping malls in the world, there is a distinct need for
district cooling in not only the residential sector, but also the commercial
sector. The United Arab Emirates alone is expecting to have 80 million sq. ft of
office space by 2010, widening the scope for district cooling companies. "The
market is also expected to benefit from the environment-consciousness of
governments, high oil prices, abundance of energy, a construction boom, and
harsh climatic conditions," say the analysts of this research.

Among all Middle Eastern countries, Saudi Arabia is perceived to have the most
untapped potential, with more than $100 billion worth construction projects
underway. Its rapidly expanding industrial base and population have increased
the demand for power, which averages an annual growth rate of nearly 5 percent.
The rising air conditioning needs account for almost 70 percent of this growth
in power demand. By 2013, the district cooling market is expected to have an
additional capacity of 4.5 million tonnage of refrigeration (TR), mainly
contributed by Saudi Arabia and Qatar. "Although there is a continuous rise in
the demand for power in almost all GCC member countries, power is still provided
at subsidized rates for the residential sector," notes the analyst. "This puts a
huge drain on the region's utilities, as power costs account for around 50
percent to 60 percent of the district cooling production cost."

District cooling production also requires copious water, which, like
electricity, is limited and therefore, expensive in the GCC. Currently, district
cooling plants use potable water, but the search is on for a technology that
will allow them to use non-desalinated seawater. Even though a few plants are
already using seawater, the corrosion-resistant equipment needed will increase
their equipment cost. The current credit crunch will make it even more
challenging for companies to acquire the systems required to deal with this
issue. As district cooling is a highly capital-intensive market, huge
investments are required to meet the additional capacity required. "Market
participants can blunt the effect of the reduced capital by concentrating more
on small projects that require less time in commissioning and that can guarantee
quick returns," remarks the analyst. "When big projects are split into smaller
units, the limited capital will be sufficient to start the project."

Application Sectors

Expert Frost & Sullivan analysts thoroughly examine the following application
sectors in this research:

* Commercial
* Residential
* Industrial
* Outdoor
* Others

This Frost & Sullivan research service titled Analysis of the District Cooling
Market in the Middle East Region provides market dynamics, market size and
forecasts, trends, and competitive analysis. In this research, Frost &
Sullivan's expert analysts thoroughly examine the following applications:
commercial, residential, industrial, outdoor, and others.

Key Topics Covered:

* 1. Executive Summary
* 2. Introduction
* 3. Market Overview - Market Distribution
* 4. Market Overview - Market Dynamics
* 5. Market Revenue Analysis
* 6. Country Attractiveness
* 7. Competitive Analysis
* 8. End-user Analysis
* 9. Regulatory Environment
* 10. Company Profiles
* 11. Econometrics
* 12. About Frost & Sullivan

Companies Mentioned:

* Tabreed
* Palm District Cooling
* Empower
* Emicool

For more information visit
http://www.researchandmarkets.com/research/b8420d/analysis_of_the_di

Laura Wood
Senior Manager
press@researchandmarkets.com
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