The Arabplast and Teknotube Arabia 2009 exhibitions have attracted a wide range of Chinese companies which believe that the Gulf offers a safe investment haven because of greater liquidity.

One exhibitor, who wished to remain anonymous, said that his company’s plan was to explore greater opportunities in the Gulf region as Plan B in case Chinese business climate turns bearish.

Satish Khanna, general manager of Al Fajer Information and Services, co-organiser of the exhibitions, said Chinese companies’ participation had increased from 24 for Teknotube 2007 to 87 and from 80 for Arabplast in 2007 to 200.

Khanna attributed the dramatic increase to Dubai’s consolidation as the hub for the entire Asian market.

'Tubes, plastics, industrial machinery and metals manufactures from China are increasingly saying that Middle East is on their list and they have to serve their customers at a closer proximity as these customers are more sustainable and have more money,' said Carol Zhao, Export department manager, Deyili, which is participating at Arabplast Show.

Arabplast offers visitors access to a wide spectrum of technological innovations in the plastics, packaging, rubber, chemical and polymer and petrochemical, while Teknotube displays latest solutions in tubes and pipes, industrial machinery & machine tools, metal working machinery and welding machinery industries.

Zhao added: 'We are here to find new customers because we consider Dubai the ideal gateway to the Middle East and North Africa regions.'

'Chinese businesses who are fully dependant on exports are suffering now. Our strategy is to strike a balance between our domestic market and external markets. We are here to find a safer market if the crisis at home deepens,' he added.

Pan Guanglin, general manager, Guanda Plastics Machinery Company participating in Arabplast said this was their debut show. 'Our major markets are South America and Asia,' he noted.

Guanglin denied that China was affected by the crisis but admitted they were facing a tough year and have plans to open offices in the region for further expansion'.

Ming Tong, vice president, Liaoning Large-Scale Steel Pipe Co participating in Teknotube, said: 'This is our first participation. We were operating in the region through distributors. Our major clients are oil and gas companies.'

'China is deeply affected by the crisis and Dubai is definitely a great market to invest in as a pre-cautionary measure,' he added.

Vivy Yang, manager, Guangzhou Junjia Steel Tube Manufacturer Company participating in TeknoTube, said the tube industry in China has been affected by the crisis like every other industry.

'Our sales strategy is 50 per cent domestic market against 50 per cent external markets. The Middle East constitutes just 5 per cent of our external markets and we are working on increasing this percentage.'

'The situation will be tougher this year and we are getting ready to explore more lucrative markets with higher liquidity, But China will remain our key market for years to come,' Yang added.

Khanna said a number of global players have announced their expansion strategies, including the German Arburg that has opened its regional headquarters in Dubai.-TradeArabia News Service