DUBAI: While the war in the Middle East has disrupted supply chains across the Gulf this year, Future Pipe Industries says its factories never stopped and not a single contract was canceled.
Speaking to Arab News, the company's president Omar Al-Busaidy, said the company learned its lesson during the COVID-19 pandemic and planned ahead.
“As of today, we’ve not had projects that were canceled,” he said in an interview in Dubai.
That holds across the company’s Gulf markets, from Saudi Arabia to the UAE and Qatar, and across energy, gas, water and sewage projects. Governments are deciding which projects go first, he said, but none have been dropped.
“We were able to have enough stockpile to keep our factories running throughout the entire time,” Al-Busaidy added.
Governments go direct
The bigger shift, he said, is in how projects are put together.
Normally, governments award projects to contractors, who then call manufacturers. Now, governments across the region are skipping that step.
“Government departments are talking directly to manufacturers, because they want to make sure that we, as suppliers, continue our commitment to produce and deliver,” he said.
In Saudi Arabia, the company works with the royal commissions, the Saudi Water Authority, and Aramco, and is discussing new projects with the Kingdom.
“The government still wants to complete some of the main projects established in Vision 2030,” he said. The company has also held recent talks with authorities in the UAE and Qatar on upcoming projects.
His message to governments has been simple: Future Pipe will stand by them.
“What we do is deliver energy and water in the most sustainable and efficient way possible, and we do not want to disrupt this for the communities living in these countries.”
Working around Hormuz
When the Strait of Hormuz was affected, the company turned to its five Gulf factories, sourcing raw materials from Saudi Arabia and Oman, and replacing some supplies from China with alternatives from elsewhere in Asia and Turkey.
It has also doubled its investments in local firms that make raw materials for its pipes, following a commitment made at Make it in the Emirates earlier this year.
Future Pipe runs 11 factories worldwide, including a plant in Dammam that employs around 1,000 people, and R&D centers in Dubai, Dammam and the Netherlands.
Betting on the rebound
The IMF expects oil prices to ease in 2027, but only if the conflict ends. Al-Busaidy said that doesn’t change the picture for infrastructure.
“Whether prices go up or down, the government tries to prioritize spending on certain areas, but one thing that has always been in focus is investment in infrastructure,” he said, adding that the region’s urban development “far outpaces many other parts of the world.”
Does the IMF’s forecast of a 9.1 percent GCC rebound in 2027 mean more projects? “100 percent,” he said.
He sees it as a vote of confidence from investors and from people who want to live and work in the region. “This only means that there’s going to be more infrastructure development, more demand for energy, and of course, more demand for pipes.”
The company is also putting more money into AI and new technologies to improve its operations and products.