Regional demand for rental power equipment is “on the rise” in the GCC as global oil prices clamp down on market liquidity, an expert said.Â
Crude values currently stand around the $32 bbl according to Bloomberg’s figures.
Local construction and heavy industry outfits are opting for rental power as a method of improving their fluidity.Â
Lee Cox, managing director of Rental Solutions and Services (RSS) in the UAE, told Construction Week he expects this trend to continue in 2016.
“Cash flow is a great issue for most of the companies, and if they can lower their CAPEX while achieving their business goals, then it would be beneficial for these companies to rent, rather than buy new equipment,” he said.Â
“The demand in rental power is still on the rise especially during a time of uncertainty in oil prices at the moment.Â
“Depending on the usage, urgency and longevity of the project, companies have a choice to purchase or rent.
“In the case of construction projects, the economic conditions dictate that the rental market for power is much more viable than purchasing generators.”Â
Cox added he anticipates all large-size ongoing infrastructure projects in the GCC to improve the scope for rental power in the region.Â
However, a slowdown or delay in new projects can be expected “due to the current economic situation”, Cox added. Â
