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Kuwait
Room and Packaged Air Conditioning
Middle East and India Market for Air Conditioning
2000
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ROOM AND PACKAGED AIR

CONDITIONING
KUWAIT
Report 14937/8
October 2000
A multi-client study
Compiled by:
Clive Hogan
Andrew Giles
No. of pages: i - vii of preamble

43 of text
Appendices A - F
BSRIA
Executive Summary
EXECUTIVE SUMMARY
The Kuwaiti market for packaged air conditioning was valued at US$ 90 million in
1999 and US$ 87 million in 2000. Because of renewed strength in the construction
sector the market is expected to experience strong growth and be worth US$ 108
million by 2004.
Figure S 1 Kuwait packaged market, % by value, 2000
Mobile units
1%
Window units
22%
Minisplits
28%
Close control
1%
Other large
4%
US-ducted
12%
Roof tops
32%
Source: BSRIA/ACNielsen AMER
75% of the packaged units sold are imported. The two local producers RIC (Coolex)
and Al Hassawi (Topcool) are believed to have an annual output of 18,000 window
units and 10,000 minisplit units. Approximately 6% of production is exported.
Most of the market is supplied by firms such as :

Hamad Abdulla Al Eisa
Craft, Gibson, Trane
Al Yousufi
National, York
Union Trading Co.
General
Supplying Store
Sanyo
Kuwait American Air Conditioning Co.
Carrier
Y.A. Alghanin
Hitachi
Awal Al Kuwait (Awalco)
Pearl
Kuwait Japanese Air Conditioning Co.
Daikin
Al Babtain / Electronic Appliances
LG
Al Andalus Trading Co.
Samsung
Sharja Kuwait Mnfg.
SKM
Al Hassawi
Topcool
RIC
Coolex
BSRIA Report 14937/8
Executive Summary
Windows/Through the wall account for 22% of market value. Sales are put at US$
22 million and 56,400 outdoor units for 1999. Sales volume dropped by some 6%
on 1998. 35% are window (rather than wall) units, around 5% are sold with a heat
pump and 30% of units sold have a capacity greater than 5kW (1.4 tons). The
demand for low end products, such as window units, is lower than pre-war levels
because of the drop in size of the less affluent expatriate population. Wealthy and
middle income Kuwaitis, however, will continue to replace or maintain residential
DX systems and mini-split systems for their houses.
Because of the extreme temperatures in the region the market for low-capacity
mobile units is not significant.
Minisplit (ductless split) systems account for 28% of market value. Sales are put at
US$ 24 million and 31,500 outdoor units for 1999. Sales volume grew by 5% on
1998. All splits systems are of the single-split type with about 10% of outdoor
units being sold with a heat pump. 50% of outdoor units are in the 3.5-7kW category
and 40% of indoor units are wall mounted. This segment will experience higher
levels of growth (+10%) over the next few years.
Sales of rooftop units were estimated to be worth US$ 28 million in 1999. 80% of
roof tops have a cooling capacity greater than 5 tons (17.85 kW) and 13% are sold
with a heat pump.
Sales of US-style ducted splits were estimated to be worth US$ 7 million in 1999.
15% have a cooling capacity less than 17.85 kW (5 tons) and 15% are sold with a
heat pump.
'Other large packaged' is a category of system that includes special one-off

machines. This segment was worth US$ 3 million in 1999. This segments market
share is expected to remain constant.
Close control applications are systems designed to meet process or equipment

needs. They are specified in telecomms and computer room situations. The close
control market was worth almost US$ 1 million in 1999.
ii
Contents
CONTENTS
1.
INTRODUCTION..............................................................................................................1
1.1 METHODOLOGY..................................................................................................1
2.
MARKET SIZE, STRUCTURE AND SEGMENTATION ..............................................3

2.1 MARKET OVERVIEW ..........................................................................................3
2.1.1 Market size ......................................................................................................3
2.1.2 Construction activity......................................................................................5
2.1.3 Climate and population...................................................................................5
2.1.4 Opportunities ..................................................................................................5
2.2 WINDOW/THROUGH-WALL UNITS ................................................................8
2.3 MOBILE (PORTABLE) UNITS..........................................................................13
2.4 MINI-SPLIT SYSTEMS.......................................................................................16
2.4.1 Conventional split systems ..........................................................................18
2.5 ROOFTOPS ..........................................................................................................22
2.5.1 Villa market...................................................................................................22
2.5.2 Market by size and type ................................................................................23
2.6 US-STYLE DUCTED (AND LARGE INDUSTRIAL SPLITS).........................25
2.7 OTHER INDOOR PACKAGED..........................................................................27
2.8 CLOSE CONTROL EQUIPMENT .....................................................................30
2.9 REFRIGERANTS .................................................................................................31
2.10 COMPRESSORS..................................................................................................32
3.
MAJOR COMPANIES....................................................................................................33
3.1 SMALL SYSTEMS...............................................................................................33
3.2 LARGE PACKAGED UNITS ..............................................................................35
3.3 PRODUCT RANGE OF LEADING SUPPLIERS .............................................37
4.
SALES TRENDS AND FUTURE FORECAST .............................................................40

4.1 HISTORICAL SALES TREND............................................................................40
4.2 FUTURE SALES FORECAST.............................................................................41
5.
PRODUCERS, IMPORTERS AND EXPORTERS.......................................................45

5.1 BALANCE OF TRADE........................................................................................45
5.2 LOCAL PRODUCERS ........................................................................................45
5.2.1 Importers .......................................................................................................45
5.2.2 Re-exportation and trading activities ..........................................................45
6.
DISTRIBUTION ..............................................................................................................46
6.1 GENERAL ............................................................................................................46
7.
PRICES, DISCOUNTS, MARGINS AND PROFITABILITY.......................................47

7.1 DISCOUNTS.........................................................................................................47
7.2 PROFITABILITY..................................................................................................47
7.3 CREDIT.................................................................................................................47
iii
Contents
8.
END USER SECTOR AND APPLICATIONS ..............................................................48

8.1 END USER SECTORS.........................................................................................48
8.2 APPLICATIONS...................................................................................................48
9.
MAIN SPECIFIERS ........................................................................................................49

9.1 SPECIFICATION PROCESS...............................................................................49
10.
MARKET ENTRY ......................................................................................................50

10.1 MARKET ACCESS ..............................................................................................50
10.2 RECOMMENDATIONS FOR MARKET ENTRY.............................................50
LIST OF APPENDICES
A
B
C
D
E
F
Building costs and construction forecasts

Kuwait Economic profile
Average monthly temperatures, major cities
Country map
Notes on Kuwait construction sector [British Embassy]
Product definitions and conversion (kW/BTUs/Tons)
iv
List of Tables and Figures
LIST OF TABLES
Table 2.1 Packaged air conditioning market, 1998 ............................................................. 3
Table 2.2 Packaged air conditioning market, 1999 ............................................................. 3
Table 2.3 Packaged air conditioning market, 2000E........................................................... 4
Table 2.4 Window/through-wall, market size, 1998-2000E .............................................. 8
Table 2.5 Window/through-wall, by type of cooling, volume, 1998 ............................... 10
Table 2.6 Window/through-wall, by type of cooling, value (US$ million), 1998 .......... 10
Table 2.7 Window/through-wall, by type of cooling, volume, 1999 ............................... 10
Table 2.8 Window/through-wall, by type of cooling, value (US$ million), 1999 .......... 10
Table 2.9 Window/through-wall, by type of cooling, volume, 2000E............................. 11
Table 2.10 Window/through-wall, by type of cooling, value (US$ million), 2000E ..... 11
Table 2.11 Window/through-wall, by size, volume, 1998 ................................................ 11
Table 2.12 Window/through-wall, by size, value (US$ million), 1998 ........................... 12
Table 2.13 Window/through-wall, by size, volume, 1999 ................................................ 12
Table 2.14 Window/through-wall, by size, value (US$ million), 1999 ........................... 12
Table 2.15 Window/through-wall, by size, volume, 2000E.............................................. 12
Table 2.16 Window/through-wall, by size, value (US$ million), 2000E......................... 13
Table 2.17 Mobiles, market size, 1998-2000E................................................................. 14
Table 2.18 Mobiles, by type of cooling, volume, 1999 .................................................... 14
Table 2.19 Mobiles, by type of cooling, value (US$ million), 1999............................... 14
Table 2.20 Mobiles, by type of cooling, volume, 2000E ................................................. 14
Table 2.21 Mobiles, by type of cooling, value (US$ million), 2000E............................ 14
Table 2.22 Mobiles, by size, volume, 1999 ....................................................................... 15
Table 2.23 Mobiles, by size, value (US$ million), 1999.................................................. 15
Table 2.24 Mobiles, by size, volume, 2000E..................................................................... 15
Table 2.25 Mobiles, by size, value (US$ million), 2000E ............................................... 15
Table 2.26 Mini-splits, market size, 1998 ......................................................................... 16
Table 2.27 Mini-splits, market size, 1999 ......................................................................... 16
Table 2.28 Mini-splits, market size, 2000E....................................................................... 17
Table 2.29 Outdoor units by type and mode, volume, 1998 ............................................. 17
Table 2.30 Outdoor units by type and mode, volume, 1999 ............................................. 17
Table 2.31 Outdoor units by type and mode, volume, 2000E........................................... 17
Table 2.32 Conventional outdoor units, by size and mode, volume, 1998...................... 18
Table 2.33 Conventional outdoor units, by size and mode, volume, 1999...................... 18
Table 2.34 Conventional outdoor units, by size and mode, volume, 2000E ................... 19
Table 2.35 Conventional indoor units, by size and mounting position, volume, 1998... 19
Table 2.36 Conventional indoor units, by size and mounting position, volume, 1999... 21
Table 2.37 Conventional indoor units, by size and mounting position, volume,
2000E ................................................................................................................... 21
Table 2.38 Conventional outdoor units, by RAC/PAC, volume, 1998 ............................ 21
Table 2.39 Conventional outdoor units, by RAC/PAC, volume, 1999 ............................ 21
Table 2.40 Conventional outdoor units, by RAC/PAC, volume, 2000E.......................... 22
Table 2.41 Rooftop market, 1998-2000E.......................................................................... 22
Table 2.42 Rooftop and ducted splits residential size products analysed by end user
sector .................................................................................................................... 23
Table 2.43 Rooftop sales analysed by size, 1998-2000E................................................. 23
Table 2.44 Sales of rooftops by mode, volume, 1998 ...................................................... 23

Table 2.45 Sales of rooftops by mode, volume, 1999 ...................................................... 24
Table 2.46 Sales of rooftops by mode, volume, 2000E.................................................... 24
Table 2.47 US-style ducted split market, 1998-2000....................................................... 25
Table 2.48 US-style ducted splits, by size, 1998 .............................................................. 25
Table 2.49 US-style ducted splits, by size, 1999 .............................................................. 25
Table 2.50 US-style ducted splits, by size, 2000E............................................................ 26
Table 2.51 US-style ducted splits, by mode, 1998............................................................ 26
Table 2.52 US-style ducted splits, by mode, 1999............................................................ 26
Table 2.53 US-style ducted splits, by mode, 2000E......................................................... 26
Table 2.54 Other indoor packaged market, 1998-2000E ................................................. 27
Table 2.55 Other indoor packaged, by size, 1998 ............................................................. 28
Table 2.56 Other indoor packaged, by size, 1999 ............................................................. 28
Table 2.57 Other indoor packaged, by size, 2000E........................................................... 28
Table 2.58 Other large packaged, by mode, 1998 ............................................................. 29
Table 2.61 Other large packaged, by cooling, 1998.......................................................... 29
Table 2.64 Close control market, 1998-2000E ................................................................ 30
Table 2.65 Close control market analysed by application, by value, 1998-2000E ........ 30
Table 2.66 Close control, by size and type of cooling, volume, 1998 ............................ 31
Table 2.69 Refrigerants used, by product, % sales by volume, 1999 .............................. 32
Table 2.70 Compressors used, by product, % sales by volume, 1998............................. 32
Table 3.1 Market leaders for window and mobile products, 1999................................... 33
Table 3.2 Market leaders for ductless split systems, 1999.............................................. 34
Table 3.3 Market leaders for large packaged air conditioning equipment, 1999 ........... 35
Table 3.4 Market leaders for close control ....................................................................... 35
Table 3.5 Product range of major suppliers....................................................................... 37
Table 3.6 Manufacturing information of major suppliers................................................. 39
Table 4.1 Historical trend for packaged air conditioning, volume (units), 19962000E ................................................................................................................... 40
Table 4.2 Historical trend for packaged air conditioning, value at current prices
(Kuwaiti Dinar million), 1996-2000E .............................................................. 41
Table 4.3 Historical trend for packaged air conditioning, value at current prices
(US$ million), 1996-2000E............................................................................... 41
Table 4.4 Forecast for packaged air conditioning, volume (units), 2000-2004 ............. 42
Table 4.5 Forecast for packaged air conditioning, value (Kuwaiti Dinar million),
2000-2004 ........................................................................................................... 43
Table 4.6 Forecast for packaged air conditioning, value (US$ million), 2000-2004 .... 43
Table 5.1 Balance of trade, packaged equipment, 1999 estimates................................... 45
Table 6.1 Distribution of packaged equipment, % by value, 1999................................... 46
Table 7.1 Prices typically paid for packaged equipment, 1999........................................ 47
Table 8.1 Building sectors for packaged equipment, % by value, 1999 .......................... 48
vi
Table 8.2 Applications for packaged air conditioning, % by value, 1999 ....................... 48
Table 9.1 Specification of packaged equipment, % value, 1999...................................... 49
Table 10.1 Methods of entering Kuwaiti packaged market .............................................. 50
vii
LIST OF FIGURES
Figure 2.1
Figure 2.2
Figure 2.3
Figure 2.4
Figure 2.5
Figure 4.1
Figure 4.2
Figure 4.3
Packaged air conditioning, value and volume, 2000E........................................4

Window/through the wall analysed by size and mode, volume, 2000E..........13
Minisplits analysed by size and mode, 2000E..................................................19
Rooftops analysed by size and mode, 2000E...................................................24
US-style ducted splits analysed by size and mode, 2000E..............................27
Kuwait packaged market value (US$ million), current prices, 1996-2000E40
Kuwait packaged market, value (US$ million), 2000-2004E (2000 prices)42
Trend for packaged air conditioning, value (US$ million), 1996-2004 ........44
viii
1.
Kuwait
INTRODUCTION
This report is the result of BSRIAs first in-depth study on the key Middle East
and Indian markets for air conditioning . The 6 countries covered are:
1. Saudi Arabia
3. United Arab Emirates
5. Iran
2. Kuwait
4. Egypt
6. India
In terms of product groups, these are covered in two separate volumes, as

follows, for each country:
Packaged Air Conditioning
Windows/through the wall
Moveables
Single splits
Multi splits
VRF
US-Style ducted splits
Roof tops
Indoor packaged
Close control
Central Plant Air Conditioning

Chillers
Air handling units
Fan coils
Chilled water cassettes
VAVs
Constant volume units
Induction units
Company Profiles
Company profiles for each
country, including address
listings
Definitions of key product groups are available in Appendix E. Data in the

reports are supplied for 1996, 1997, 1998, 1999 and 2000 (estimates), with
forecasts to 2004. However, please note that due to the volume of data, the main
part of the report will concentrate around 1998-2000 data.
1.1
METHODOLOGY
The research is based on a mixture of methodologies:
A network of local research partners are commissioned to write draft reports.
Data obtained is verified by BSRIA.
Pan-regional cross-checks are undertaken by BSRIAs consultants.
At local level, research is obtained through a range of sources:
statistical collection
desk research
face to face interviews
telephone/fax interviews
The research is planned and controlled from BSRIA. This combines the
advantage of using local experts, which are long standing partners, as well as
offering BSRIA expertise in the air conditioning field and the advantage of
supplying a common comparable set of data across the region. Overall some
Kuwait
300 interviews have been undertaken with key suppliers, installers, industry
bodies and specifiers.
Kuwait
2.
MARKET SIZE, STRUCTURE AND SEGMENTATION
2.1
MARKET OVERVIEW
2.1.1
Market size
110,000 packaged units were sold in 1998, falling to 108,000 units in 1999 and
106,000 units in the year 2000.
Table 2.1 Packaged air conditioning market, 1998
Market value
Kuwaiti Dinar
US$
million
million
Window/through-wall
Mobile(portable)
Minisplits(ductless splits)
Rooftops
US-style ducted splits
Other large packaged
Close control
Total market
Volume
Average
market
Outdoor units selling price
7.2
0.3
7.2
8.6
3.2
0.9
0.3
24.0
1.1
24.0
28.5
10.7
3.2
1.0
60,000
1,000
30,000
15,000
3,000
500
150
27.7
92.4
109,650
$400
$1,100
$800
$1,900
$3,581
$6,300
$6,700
-

Notes: 1.
Market size includes indoor and outdoor values
2:
Average price is per outdoor unit
3.
US$1=0.30 Kuwaiti Dinar
Over the past five years, total packaged unit volumes have experienced a decline
of around 2%. Window unit sales declined particularly over this period, whereas
those of other packaged units have shown an upward trend. Because of increased
competition, prices of various types of packaged units have declined. This has
caused lower growth in sales revenues than in sales volumes.
Table 2.2 Packaged air conditioning market, 1999
Market value
Kuwaiti Dinar
US$
million
million
Window/through-wall
Mobile(portable)
Roof tops
Close control
Total market
Volume
Average
market
Outdoor units selling price
6.5
0.3
7.3
8.4
3.2
0.9
0.3
21.7
1.1
24.2
27.9
10.7
3.1
1.0
56,400
1,000
31,500
15,300
3,060
510
155
26.9
89.7
107,925
$384
$1,056
$768
$1,824
$3,496
$6,048
$6,432
-

Notes: 1.
2:
3.
US$1=0.30 Dinar
Kuwait
Table 2.3 Packaged air conditioning market, 2000E
Window/through-wall
Mobile(portable)
Roof tops
Close control
Market value
Volume
Average
Kuwaiti Dinar
US$
market
million
million Outdoor units selling price
5.9
19.5
53,016
$369
0.3
1.0
1,000
$1,014
7.3
24.4
33,075
$737
8.2
27.3
15,606
$1,751
3.2
10.6
3,121
$3,396
0.9
3.0
520
$5,806
0.3
1.0
160
$6,175
Total market
26.0
86.9
106,499

Notes: 1.
2:
3.
US$1=0.30 Dinar
Figure 2.1 Packaged air conditioning, value and volume, 2000E

By value
By volume
Window/
through the
wall
$19.5 million
Rooftops
$27.3 million
Close control
160 units
Other large
packaged
520 units
Rooftops
15,506 units
Mobiles
1,000 units
Close control
$1.0 million
Mobiles
$1.0 million
Minisplits
$24.4 million
Other large
packaged
$3.0 million
Window/
through the
wall
53,016 units
US-style
ducted splits
3,121 units
Minisplits
33,075 units
US-style
ducted splits
$10.6 million
Total: US$ 86.9 million
Total: 106,499 units
The early 90s (after the Gulf war) were very good years for the construction
industry in Kuwait, and therefore for the air conditioning industry as well. This
trend continued until the mid-90s, after which growth slowed, primarily because
of the completion of most new / large projects. 1995-96 saw some resurgence
in the industry, which experts attribute to the replacement market cycle. 1997 to
1999 were however not as good:
fewer expatriates entered the country in the past few years

prices of oil declined significantly in 1997 and 1998 because of oversupply.
2.1.2
Kuwait
Construction activity
Due to expansion in residential and construction projects the value of the

packaged market is expected to grow by 6% per annum, over the next few years.
Several major construction and industrial projects are underway including the
building of 10,000 residential dwellings. Volumes are expected to pass 120,000
units by 2004, and revenues should reach the US$ 100 million mark by this time.
The past few years have witnessed more construction activity in the residential
sector than in the commercial sector, and this trend is expected to continue;
there are indications that over the next 1-2 years, the National Housing Authority
is planning to allot a large number of new plots of land for residential
construction. The estimates for the number of plots range from 10,000 to
50,000. Locals as well as expatriates have started moving back to Kuwait now,
post the Gulf War and the rebuilding period.
2.1.3
Climate and population
The land is semi-arid with annual rainfall of about 4 - 5 inches in winter months,
November to February. Average daytime temperatures often exceed 125F
during the summer. These high temperatures during most of the year along with
intense seasonal humidity and frequent dust storms make Kuwait an excellent
market for air conditioning and refrigeration equipment.
The total population is approximately 2.14 million; 35.4% (an approx. 760,000)
are native Kuwaitis. Kuwait's much larger expatriate population includes nonGulf Arabs, East and South Asians.
2.1.4
Opportunities
A selection of recent major projects illustrate the types of requirements for

major air conditioning systems:
Residential
The National Housing Authority is responsible for providing houses for Kuwaiti
citizens on a long instalment basis. About 11,000 houses are reported underway
which will be ready in two years. Locations include Al-Jahra, Doha, and Jaleeb
Al- Shuyoukh. In addition, 603 houses (KD 15.698 million) will be built in AlRabia South, 242 houses (11.637 KD) will be built in Suleibikhat, and another
440 units will be built in Al-Wafra area.
Kuwait
Commercial
The Municipality of Kuwait now allows real estate investors to construct high
rise buildings. Maximum height is 30 floors in the centre of the city and 20
floors outside the city. This will create more opportunities for U.S. air
conditioning companies in Kuwait, as these buildings normally use larger
packaged air conditioning and central plant equipment.
The Ministry of Public Health has issued 14 licences for Kuwaitis to establish
private hospitals in the country. In addition, the Kuwait Oil Company (KOC) is
planning to establish a new 225 bed hospital in the Ahmedi area. Also the Five
Year Plan includes the construction of a new psychiatric hospital, a new chest
diseases hospital; several specialist centres in the Al-Ferdous Area and three
dental centre in Kuwaiti City, Jahra and Al-Farwaniya.
Other air conditioning sales projects include:
The construction of the Commercial Tower on Fahad Al-Salem Street.

Reconstruction of the Celestial Sphere.
Continuous maintenance of all air conditioning equipment in Kuwaiti
government schools, which often requires a great deal of spare parts.
Ministry of Defence facilities including military bases often require
electrical and mechanical works equipment and maintenance services.
General maintenance services of the electrical and mechanical installations in
all government hospitals and clinics which run about USD 28 million
annually.
The Ministry of the Interior's main complex project, still in the design stage,
will require large scale installation of air conditioning systems.
Other potential areas for air conditioning sales include:
Al-Jahra, one of Kuwait's heavily populated areas. Thousands of housing units

were built during the past ten years largely without commercial facilities such
as shopping centres, mosques, and medical offices. 10 to 15 commercial
complexes are expected to be built, subject to security stability on the Iraqi
border. These will require extensive use of air conditioning equipment.
Jaleeb al-Shuyoukh; Sabah Al-Nasser and Um Al-Heman residential areas also

require service facilities such as shopping centres, mosques and medical
offices.
Government
Major government consumers of air conditioning equipment are:
The National Housing Welfare Authority (NHA) which builds about 2,000
single housing units every year. Each house usually requires an air
Kuwait
conditioning system which ranges between 20 to 45 tons, compared with, for

example, single houses in the USA which require 3 to 5 tons. Some of these
houses also use split and window units.
Kuwait
There are thousands of Kuwaiti citizens on the NHA waiting list for
government houses. Marriage is the basic criterion for eligibility to receive a
government house. Because it takes an average of 11 years to actually receive
a home or a plot of land, the average age of a recipient is between 35 to 45
(the average marriage age for a Kuwaiti man is 27). This means that the
recipients are generally well established in their jobs, and with government
financial assistance more funds are available for individual upkeep of the
house and expenditure on central air conditioning systems and/or split units.
NHA is now preparing sites to build two cities which will accommodate
250,000 people.
2.2
The Ministry of Education requires all types of air conditioning equipment

for schools, Kuwait University and all public educational institutes.
The Ministry of Electricity and Water requires all types of air conditioning
systems including industrial equipment and continuous maintenance and
services.
The Ministry of Public Works is responsible for public facilities such as

mosques and public institutions with high demand for air conditioning
systems.
Oil companies, such as Kuwait Oil Company (KOC) and Kuwait National
Petroleum Company (KNPC), require all types of air conditioning equipment,
including chillers.
WINDOW/THROUGH-WALL UNITS
Windows/through the wall account for 23% of market value. Sales are put at
US$ 22 million and 56,400 outdoor units for 1999. Sales volumes dropped by
some 6% on 1998. 30% are window (rather than wall) units, around 50% are
sold with a heat pump and 60% of units sold have a capacity greater than 5kW
(1.4 Tons). The demand for low end products, such as window units, is lower than
pre-war levels because of the drop in size of the less affluent expatriate
population. One interesting trend observed in window units is the relatively large
number of expatriates (Arabs, Asians) purchasing new window units and carrying
them back to their home countries. This has offset the declining sales of window
units to some extent.
Wealthy and middle income Kuwaitis, however, will continue to replace or
maintain residential DX systems and mini-split systems for their houses.
Table 2.4 Window/through-wall, market size, 1998-2000E
Market value
Volume
Average
1998
1999
2000E
Kuwait
Kuwaiti Dinar
million
7.2
6.5
5.9
US$
market
no. units
million
selling price
24.0
60,000
$400
21.7
56,400
$384
19.5
53,016
$369
Kuwait
Since a large proportion of all construction activity in Kuwait took place after the
Gulf War, the builders / architects, etc. at that time opted for the newer
technology splits, roof top and other large packaged units. This was quite unlike
UAE market for example, where window units is still a major market. The
volume sales of window units have been declining at almost 5% per annum; they
are being replaced by splits, packaged roof top units, US-style ducted splits and
central plant solutions.
Table 2.5 Window/through-wall, by type of cooling, volume, 1998
Cooling only
Heat pump
Heating element
Total
Window
units
%
19,740
94%
1,260
6%
0
0%
21,000
100%
Wall
units
37,050
1,950
0
39,000
%
95%
5%
0%
100%
Total
units
56,790
3,210
0
60,000
%
95%
5%
0%
100%
Table 2.6 Window/through-wall, by type of cooling, value (US$ million),

1998
$US million
Cooling only
Heat pump
Heating element
Total
Window
$US
%
7.9
94%
0.5
6%
0.0
0%
8.4
100%
Wall
$US
14.8
0.8
0.0
15.6
%
95%
5%
0%
100%
Total
$US
22.7
1.3
0.0
24.0
%
95%
5%
0%
100%
Table 2.7 Window/through-wall, by type of cooling, volume, 1999
Cooling only
Heat pump
Heating element
Total
Window
units
%
18,556
94%
1,184
6%
0
0%
19,740
100%
Wall
units
34,827
1,833
0
36,660
%
95%
5%
0%
100%
Total
units
53,383
3,017
0
56,400
%
95%
5%
0%
100%

1999
$US million
Cooling only
Heat pump
Heating element
Total
Window
$US
%
7.1
94%
0.5
6%
0.0
0%
7.6
100%
Wall
$US
13.4
0.7
0.0
14.1
%
95%
5%
0%
100%
Total
$US
20.5
1.2
0.0
21.7
%
95%
5%
0%
100%
10
Kuwait
Table 2.9 Window/through-wall, by type of cooling, volume, 2000E
Cooling only
Heat pump
Heating element
Total
Window
units
%
17,442
94%
1,113
6%
0
0%
18,556
100%
Wall
units
32,737
1,723
0
34,460
Total
%
95%
5%
0%
100%
units
50,180
2,836
0
53,016
%
95%
5%
0%
100%

2000E
$US million
Cooling only
Heat pump
Heating element
Total
Window
$US
%
6.4
94%
0.4
6%
0.0
0%
6.8
100%
Wall
$US
12.0
0.7
0.0
12.7
Total
%
95%
5%
0%
100%
$US
18.4
1.1
0.0
19.5
%
95%
5%
0%
100%
Because climatic conditions in Kuwait are desert-like, with almost 8-9 months of
high temperatures, cooling is the largely the only cycle that is really required for
air-conditioning purposes. The above proportions are expected to remain
relatively stable. Over the next five years, the trend towards splits, other
packaged units and central plant equipment is expected to continue.
By 2000, window unit sales are expected to fall to 25,000 units. The key
importers of window units in Kuwait are Hamad Abdulla Al Eisa, Al Yousufi,
Union Trading Co., Supplying Store and Kuwait American Air-conditioning Co.
The most popular window unit capacity was 3.5-5.0 kW, accounting for more than
60% of this segment; the larger sizes accounted for an additional one-third of the
segment.
Table 2.11 Window/through-wall, by size, volume, 1998
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Window
units
%
2,100
10%
12,600
60%
6,300
30%
21,000
100%
Wall
units
3,900
23,400
11,700
39,000
Total
%
10%
60%
30%
100%
units
6,000
36,000
18,000
60,000
%
10%
60%
30%
100%
11
Kuwait
Table 2.12 Window/through-wall, by size, value (US$ million), 1998

Window
$US
%
0.8
9%
5.1
60%
2.6
31%
8.4
100%
$US million
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Wall
$US
Total
%
1.4
9.4
4.8
15.6
9%
60%
31%
100%
$US
2.2
14.4
7.4
24.0
9%
60%
31%
100%

Note:
most suppliers sell the 2 ton units at prices which are lower than the 1.5 ton units, even lower than the
1 ton units, at times. This is to sell higher volumes of the 2 ton units.
Table 2.13 Window/through-wall, by size, volume, 1999
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Window
units
%
1,974
10%
11,844
60%
5,922
30%
19,740
100%
Wall
units
3,666
21,996
10,998
36,660
%
10%
60%
30%
100%
Total
units
5,640
33,840
16,920
56,400
%
10%
60%
30%
100%
Table 2.14 Window/through-wall, by size, value (US$ million), 1999

$US million
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Window
$US
%
0.7
9%
4.5
60%
2.4
31%
7.6
100%
Wall
$US
Total
%
1.2
8.6
4.3
14.1
9%
60%
31%
100%
$US
1.9
13.1
6.7
21.7
9%
60%
31%
100%

Note:
Most suppliers sell the 2-ton units at prices which are lower than the 1.5 ton units, even lower than
the 1 ton units, at times. This is to sell higher volumes of the 2 ton units.
Table 2.15 Window/through-wall, by size, volume, 2000E
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Window
units
%
1,856
10%
11,133
60%
5,567
30%
18,556
100%
Wall
units
3,446
20,676
10,338
34,460
Total
%
10%
60%
30%
100%
units
5,302
31,810
15,905
53,016
%
10%
60%
30%
100%
12
Kuwait
Table 2.16 Window/through-wall, by size, value (US$ million), 2000E

Window
$US
%
0.6
9%
4.1
60%
2.1
31%
6.8
100%
$US million
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Wall
$US
Total
%
1.2
7.6
3.9
12.7
$US
9%
60%
31%
100%
1.8
11.7
6.0
19.5
%
9%
60%
31%
100%

Note:
most suppliers sell the 2-ton units at prices which are lower than the 1.5-ton units, even lower than
the 1-ton units, at times. This is to sell higher volumes of the 2-ton units.
Figure 2.2 Window/through the wall analysed by size and mode, volume,
2000E
By size
By mode
Under 3.5 kW
5,302 units
Over 5 kW
15,905 units
Heat pump
2,836 units
Cooling only
50,180 units
3.5 - 5.0 kW
31,810 units
Total: 53,016 units

Given that there is an overall shift in the air-conditioning market towards larger
capacity units, within the window unit segment, it is expected that the market will
move towards the larger sizes. This means that the sales of less than 5 kW units
will decline over time.
2.3
MOBILE (PORTABLE) UNITS

Because of the extreme temperatures in Kuwait the market for mobiles
(portables) is small, accounting for 1% of market value at around 1,000 units.
The size of the market is expected to remain constant. As with window and fixedsplit units, price levels have been eroded by increased competition.
13
Kuwait
Table 2.17 Mobiles, market size, 1998-2000E

Market value
Kuwaiti
US$
Dinar
million
0.3
1.1
0.3
1.1
0.3
1.0
1998
1999
2000E
Volume
no. units
1,000
1,000
1,000
Average
market
selling price
$1,100
$1,056
$1,014
Table 2.18 Mobiles, by type of cooling, volume, 1999
Cooling only
Heat pump
Heating element
Total
Self-contained
units
%
900
100%
0
0%
0
0%
900
100%
Split
units
100
0
0
100
%
100%
0%
0%
100%
Total
units
1,000
0
0
1,000
%
100%
0%
0%
100%
Table 2.19 Mobiles, by type of cooling, value (US$ million), 1999

$US million
Cooling only
Heat pump
Heating element
Total
Self-contained
$US
%
1.0
100%
0.0
0%
0.0
0%
1.0
100%
Split
$US
0.1
0.0
0.0
0.1
Total
%
100%
0%
0%
100%
$US
1.1
0.0
0.0
1.1
%
100%
0%
0%
100%
Table 2.20 Mobiles, by type of cooling, volume, 2000E
Cooling only
Heat pump
Heating element
Total
Self-contained
units
%
900
100%
0
0%
0
0%
900
100%
Split
units
100
0
0
100
%
100%
0%
0%
100%
Total
units
1,000
0
0
1,000
%
100%
0%
0%
100%
Table 2.21 Mobiles, by type of cooling, value (US$ million), 2000E

$US million
Cooling only
Heat pump
Heating element
Total
Self-contained
$US
%
0.9
100%
0.0
0%
0.0
0%
0.9
100%
Split
$US
0.1
0.0
0.0
0.1
Total
%
100%
0%
0%
100%
$US
1.0
0.0
0.0
1.0
%
100%
0%
0%
100%
14
Kuwait
The main players in this small segment are Union Trading Co. (General), Al
Yousufi (York) and Supplying Store (Sanyo). The most popular size in the
mobile unit segment are below 3.5 kW. Once again, similar to window units, one
would typically find mobile units only with the cooling cycle, and no heating
element.
The forecast for the next five years is expected to be similar to follow the pattern
shown over the previous five years: this sector will grow both in volume and value
however, its share of the packaged unit market will remain constant. A maximum
CAGR of 2-3% is expected over the next five years for this sector.
Table 2.22 Mobiles, by size, volume, 1999
Self-contained
units
%
630
70%
270
30%
0
0%
900
100%
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Split
units
Total
%
70
30
0
100
70%
30%
0%
100%
units
700
300
0
1,000
%
70%
30%
0%
100%
Table 2.23 Mobiles, by size, value (US$ million), 1999

Self-contained
$US
%
0.7
68%
0.3
32%
0.0
0%
1.0
100%
$US million
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Split
$US
Total
%
0.1
0.0
0.0
0.1
$US
68%
32%
0%
100%
%
0.7
0.4
0.0
1.1
68%
32%
0%
100%
Table 2.24 Mobiles, by size, volume, 2000E

Self-contained
units
%
630
70%
270
30%
0
0%
900
100%
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Split
units
70
30
0
100
70%
30%
0%
100%
Total
units
700
300
0
1,000
%
70%
30%
0%
100%
Table 2.25 Mobiles, by size, value (US$ million), 2000E

$US million
<3.5 kW
3.5 - 5.0 kW
>5 kW
Total
Self-contained
$US
%
0.7
68%
0.3
32%
0.0
0%
1.0
100%
Split
$US
Total
%
0.1
0.0
0.0
0.1
68%
32%
0%
100%
$US
%
0.7
0.3
0.0
1.0
68%
32%
0%
100%

15
2.4
Kuwait
MINI-SPLIT SYSTEMS
There are two basic designs of split systems :
1) single-split or
In a single-split, one internal unit (evaporator) is matched
conventional
with one external unit (condenser). In a multisplit system,
multisplit systems more than one internal unit is served by a single external
unit. The same indoor and outdoor units can be used in
either the single or the multi-arrangement. Hence they are
analysed together.
2) VRF multisplit These systems are more sophisticated and use many
outdoor units which serve many indoor units. By installing
multiple condensers - up to ten or twenty have been used on
some sites - one can reproduce many of the features of a
central plant system using a packaged approach. Thus the
VRF market is seen as one which 'crosses over' from
packaged products to central plant products.
Minisplit (ductless split) systems account for 30% of market value. All splits
systems are of the single-split type with about 10% of outdoor units being sold
with a heat pump, 40% of indoor units are wall mounted. The largest market is
for residential applications where minisplits is gaining share against windows in
retail outlets.
Table 2.26 Mini -splits, market size, 1998
Single split (one-to-one)

Multisplit
VRF
Total
Value
Kuwaiti
US$
Dinar
million
million
7.2
24.0
0.0
0.0
0.0
0.0
7.2
24.0
Outdoor
units
30,000
0
0
30,000
Indoor
units
30,000
0
0
30,000
Average
market
price
US$
$800
n/a
n/a
-

Note:
Market average price is per outdoor unit
Table 2.27 Mini -splits, market size, 1999

Multisplit
VRF
Total
Value
Kuwaiti
US$
Dinar
million
million
7.3
24.2
0.0
0.0
0.0
0.0
7.3
24.2
Outdoor
units
31,500
0
0
31,500
Indoor
units
31,500
0
0
31,500
Average
market
price
US$
$768
n/a
n/a
-

Note:
16
Kuwait
Table 2.28 Mini -splits, market size, 2000E

Multisplit
VRF
Total
Value
Kuwaiti
US$
Dinar
million
million
7.3
24.4
0.0
0.0
0.0
0.0
7.3
24.4
Outdoor
units
Indoor
units
33,075
0
0
33,075
33,075
0
0
33,075
Average
market
price
US$
$737
n/a
n/a
-

Note:
This segment has been experiencing relatively high levels of growth, at the
expense of window units. Single splits are found in the Kuwait market. Sales of
multi-splits or and VRF units are negligible.
Table 2.29 Outdoor units by type and mode, volume, 1998
Cooling only
Heat pump
Heat recovery
Total
Single split
units
%
27,000
90%
3,000
10%
0
0%
30,000
100%
Note : heat recovery only available with VRF systems

Table 2.30 Outdoor units by type and mode, volume, 1999
Cooling only
Heat pump
Heat recovery
Total
Single split
units
%
28,350
90%
3,150
10%
0
0%
31,500
100%

Table 2.31 Outdoor units by type and mode, volume, 2000E
Cooling only
Heat pump
Heat recovery
Total
Single split
units
%
29,767
90%
3,308
10%
0
0%
33,075
100%

17
Kuwait
It is estimated that the market for minisplits will be worth $US 36 million by
2004.
The larger size splits account for almost half the sales in this sector.
Similar to window units, almost all (90%) of fixed-split units are cooling-type
only. Although winters are cool and wet, the average temperature in December is
still 14-15C so there is only a limited need for heat pumps. Out of all ductless
split units, 40% are wall-mounted, whereas 30% are ceiling-mounted and 20%
are cassette-type units; the balance, 10%, are floor / vertical consoles. It is
expected that the wall-mounted units will lose share over the next 5-7 years,
similar to window units.
2.4.1
Conventional split systems
As shown, larger units dominate with almost all sales above 5 kW. However,
RAC minisplits account for some 50% of the market as there are many larger
sized residential design units found.
Table 2.32 Conventional outdoor units, by size and mode, volume, 1998
<3.5 kW
3.5 - 5.0 kW
5.0 - 7.0 kW
7.0 - 10.0 kW
10.0 - 17.0 kW
> 17 kW
Total
Cooling only
units
%
0
0%
2,700
10%
10,800
40%
12,690
47%
810
3%
0
0%
27,000
100%
Heat pump
units
%
0
0%
300
10%
1,200
40%
1,410
47%
90
3%
0
0%
3,000
100%
Total
units
0
3,000
12,000
14,100
900
0
30,000
0%
10%
40%
47%
3%
0%
100%
Table 2.33 Conventional outdoor units, by size and mode, volume, 1999
<3.5 kW
3.5 - 5.0 kW
5.0 - 7.0 kW
7.0 - 10.0 kW
10.0 - 17.0 kW
> 17 kW
Total
Cooling only
units
%
0
0%
2,976
10%
11,907
40%
13,992
47%
893
3%
0
0%
29,768
100%
Heat pump
units
%
0
0%
330
10%
1,323
40%
1,555
47%
99
3%
0
0%
3,307
100%
Total
units
0
3,306
13,230
15,547
992
0
33,075
%
0%
10%
40%
47%
3%
0%
100%
18
Kuwait
Table 2.34 Conventional outdoor units, by size and mode, volume, 2000E
<3.5 kW
3.5 - 5.0 kW
5.0 - 7.0 kW
7.0 - 10.0 kW
10.0 - 17.0 kW
> 17 kW
Total
Cooling only
units
%
0
0%
2,976
10%
11,907
40%
13,992
47%
893
3%
0
0%
29,768
100%
Heat pump
units
%
0
0%
330
10%
1,323
40%
1,555
47%
99
3%
0
0%
3,307
100%
Total
units
0
3,306
13,230
15,547
992
0
33,075
0%
10%
40%
47%
3%
0%
100%
Figure 2.3 Minisplits analysed by size and mode, 2000E

By size
10.0 - 17.0 kW
992 units
By mode
3.5 - 5.0 kW
3,306 units
Heat pump
3,307 units
7.0 - 10.0 kW
15,547 units
5.0 - 7.0 kW
13,230 units
Cooling only
29,768 units
Total: 33,075 units

Though the wall-mounted 2.5 ton units account for the greater part of the ductless
split market, ceiling-mounted units are expected to replace them slowly but
surely.
Table 2.35 Conventional indoor units, by size and mounting position,
volume, 1998
<3.5 kW
3.5 - 5.0 kW
5.0 - 7.0 kW
7.0 - 10.0 kW
10.0 - 17.0 kW
> 17 kW
Total
Wall mounted
Ceiling
Floor/vertical
Cassette
(Hi-wall)
mounted
or consoles
units
%
units
%
units
%
units
%
0
0%
0
0%
0
0%
0
0%
1,200
10%
900
10%
300
10%
600
10%
4,800
39% 3,600
41% 1,200
40% 2,400
40%
5,700
46% 4,200
48% 1,500
50% 2,700
45%
600
5%
0
0%
0
0%
300
5%
0
0%
0
0%
0
0%
0
0%
12,300 100% 8,700
100% 3,000
100% 6,000
100%
Total
units
0
3,000
12,000
14,100
900
0
30,000
%
0%
10%
40%
47%
3%
0%
100%
19
Kuwait
20
Kuwait

volume, 1999
<3.5 kW
3.5 - 5.0 kW
5.0 - 7.0 kW
7.0 - 10.0 kW
10.0 - 17.0 kW
> 17 kW
Total
Wall mounted
Ceiling
Floor/vertical
Cassette
(Hi-wall)
mounted
or consoles
units
%
units
%
units
%
units
%
0
0%
0
0%
0
0%
0
0%
1,260
10%
945
10%
315
10%
630
10%
5,040
39% 3,780
41% 1,260
40% 2,520
40%
5,985
46% 4,410
48% 1,575
50% 2,835
45%
630
5%
0
0%
0
0%
315
5%
0
0%
0
0%
0
0%
0
0%
12,915 100% 9,135
100% 3,150
100% 6,300
100%
Total
units
0
3,150
12,600
14,805
945
0
31,500
0%
10%
40%
47%
3%
0%
100%

volume, 2000E
<3.5 kW
3.5 - 5.0 kW
5.0 - 7.0 kW
7.0 - 10.0 kW
10.0 - 17.0 kW
> 17 kW
Total
Wall mounted
Ceiling
Floor/vertical
Cassette
(Hi-wall)
mounted
or consoles
units
%
units
%
units
%
units
%
0
0%
0
0%
0
0%
0
0%
1,323
10%
992
10%
330
10%
662
10%
5,293
39% 3,969
41% 1,323
40% 2,646
40%
6,285
46% 4,632
48% 1,653
50% 2,976
45%
661
5%
0
0%
0
0%
330
5%
0
0%
0
0%
0
0%
0
0%
13,562 100% 9,593
100% 3,306
100% 6,614
100%
Total
units
0
3,507
13,231
15,546
991
0
33,075
0%
10%
40%
47%
3%
0%
100%
Table 2.38 Conventional outdoor units, by RAC/PAC, volume, 1998

<5 kW
RAC
PAC
Total
units
2,400
600
3,000
>5kW
%
units
80%
20%
100%
Total
%
5,400
21,600
27,000
units
20%
80%
100%
7,800
22,200
30,000
26%
74%
100%
Table 2.39 Conventional outdoor units, by RAC/PAC, volume, 1999

<5 kW
RAC
PAC
Total
units
2,520
630
3,150
>5kW
%
units
80%
20%
100%
5,670
22,680
28,350
Total
%
units
20%
80%
100%
8,190
23,310
31,500
%
26%
74%
100%
21
Kuwait
Table 2.40 Conventional outdoor units, by RAC/PAC, volume, 2000E

<5 kW
units
2,647
661
3,308
RAC
PAC
Total
>5kW
%
units
80%
20%
100%
Total
%
5,953
23,814
29,767
units
20%
80%
100%
8,600
24,475
33,075
26%
74%
100%
2.5
ROOFTOPS
Sales of rooftop units were estimated to be worth US$28 million in 1999. 80%
of rooftops have a cooling capacity greater than 17.85 kW (5 tons) and 90% are
sold with a heat pump. Though this segment is expected to experience positive
growth over the next few years, its overall share of the packaged unit market
should remain fairly stable.
Table 2.41 Rooftop market, 1998-2000E
Market value
1998
1999
2000E
Kuwaiti Dinar
million
8.6
8.4
8.2
Volume
Average
US$
market
no. units
million
selling price
28.5
15,000
$1,900
27.9
15,300
$1,824
27.3
15,606
$1,751
Besides split units, packaged rooftops have also contributed to the shift away
from window units. During the past five years, various large construction
projects have opted for packaged rooftop units, thus resulting in an increase in its
volumes and revenues. This is now expected to plateau in the future.
2.5.1
Villa market
Rooftops are also found in villas. There are essentially two types of villa:
smaller ones where the basement will be ducted split and the ground and first
floor will be rooftops. Larger ones will have ducted splits in the basement and
ground floor, and rooftop in the first and second floors. Typically only small
ducted split (2.5 ton) issued in the basement, but for the first floor, four to five
roof tops are needed per villa, because zoning is very important. There is also a
significant market outside of villas. Market arenas are often installed with
rooftops.
The analysis below shows the end user market for residential-sized products
(below 5 yons or 17.85 kW).
22
Kuwait
Table 2.42 Rooftop and ducted splits residential size products analysed by
end user sector
Rooftop
80%
5% (top floor)
Villas
Apartments
Schools (1)
Offices (1)
Open air market
Total
}
}
}
Ducted split
15%
80% (up to 50 per
apartment block)
15%
15%
100%
100%
Source: BSRIA/JARN
Note:
1.
Also use package chillers
Typically the villas are some 600 square metres in size and are installed
absolutely adjacent to one another, there is almost no space left for the garden.
2.5.2
Market by size and type
Table 2.43 Rooftop sales analysed by size, 1998-2000E

1998 sales
Units
%
< 7kW
0
0%
7-10kW
0
0%
10-17.85kW 3,000
20%
17.85-50kW 12,000
80%
> 50 kW
0
0%
Total
15,000
100%
1999 sales
Units
%
0
0%
0
0%
3,060
20%
12,240
80%
0
0%
15,300
100%
2000 sales
Units
%
0
0%
0
0%
3,121
20%
12,485
80%
0
0%
15,606
100%
Over the next few years this sector will grow at around 7% per annum.
Table 2.44 Sales of rooftops by mode, volume, 1998
<17.85 kW
units
%
2,700
90%
300
10%
0
0%
3,000
100%
Cooling only
Heat pump
Gas fired
Total
>17.85 kW
units
%
10,320
86%
1,680
14%
0
0%
12,000
100%
Total
units
13,020
1,980
0
15,000
%
87%
13%
0%
100%
23
Kuwait
Table 2.45 Sales of rooftops by mode, volume, 1999

<17.85 kW
units
%
2,754
90%
306
10%
0
0%
3,060
100%
Cooling only
Heat pump
Gas fired
Total
>17.85 kW
units
%
10,526
86%
1,714
14%
0
0%
12,240
100%
Total
units
13,280
2,020
0
15,300
%
87%
13%
0%
100%
Table 2.46 Sales of rooftops by mode, volume, 2000E

<17.85 kW
units
%
2,809
90%
312
10%
0
0%
3,121
100%
Cooling only
Heat pump
Gas fired
Total
>17.85 kW
units
%
10,737
86%
1,748
14%
0
0%
12,485
100%
Total
units
13,546
2,060
0
15,606
%
87%
13%
0%
100%
Figure 2.4 Rooftops analysed by size and mode, 2000E

By size
By mode
10 - 17.85 kW
3,121 units
17.85 - 50 kW
12,485 units
Heat pump
2,060 units
Cooling only
13,546 units
Total: 15,606 units

The major players in this segment are Al Yousufi (York), Hamad Abdul Al Eisa
(Trane), Y. A. Alghanin (Hitachi) and RIC (Coolex). The most popular sizes of
roof-top packaged units are 6-7 tons, followed by the 5 tons units. Larger
capacity units account for 10% of this segment. Overall, there will be a shift
towards larger capacity units. As a result, the growth in roof-top packaged unit
sales is expected to be higher in value than in volume over the next few years.
24
2.6
Kuwait
US-STYLE DUCTED (AND LARGE INDUSTRIAL SPLITS)

Sales of US-style ducted splits were estimated to be worth US$ 7 million in
1999. 15% have a cooling capacity less than 17.85 kW (5 Tons) and 15% are
sold with a heat pump.
Table 2.47 US-style ducted split market, 1998-2000
1998
1999
2000E
Market value
Volume
Average
Kuwaiti Dinar
US$
market
no. units
million
million
selling price
3.2
10.7
3,000
$3,581
3.2
10.7
3,060
$3,496
3.2
10.6
3,121
$3,396
The most popular tonnage capacities for this sector are the 5-ton and 5-10 ton
units, which account for more than three-quarters of sales in this segment. The 3ton units account for the remaining quarter.
Table 2.48 US-style ducted splits, by size, 1998
Value
Kuwaiti Dinar
US$
million
million
<17.85 kW
>17.85 kW
Total
0.3
2.9
3.2
1.1
9.6
10.7
Volume
no. units
450
2,550
3,000
Average
market
selling price
$2,510
$3,765
$3,581
Table 2.49 US-style ducted splits, by size, 1999
<17.85 kW
>17.85 kW
Total
Value
Volume
Average
Kuwaiti Dinar
US$
no. units
market
million
million
selling price
0.3
1.1
459
$2,450
2.9
9.6
2,601
$3,793
3.2
10.7
3,060
$3,496
25
Kuwait
Table 2.50 US-style ducted splits, by size, 2000E

Value
Kuwaiti Dinar
US$
million
million
<17.85 kW
>17.85 kW
Total
0.3
2.9
3.2
1.1
9.5
10.6
Volume
no. units
468
2,653
3,121
Average
market
selling price
$2,342
$3,686
$3,396
US-ducted split unit sales volumes have been increasing over the past five years;
their market share is also increasing, slowly but steadily. The past five years
experienced a volume growth of around 2%. Volumes in the year 2004 are
expected to be in the region of 4,000. The growth of villas will help boost the
market.
Table 2.51 US-style ducted splits, by mode, 1998
Value
Kuwaiti Dinar
US$
million
million
Cooling only
Heat pump
Total
2.6
0.6
3.2
8.8
1.9
10.7
Volume
no. units
2,550
450
3,000
Average
market
selling price
$3,462
$4,159
$3,581
Table 2.52 US-style ducted splits, by mode, 1999

Value
Kuwaiti Dinar
US$
million
million
Cooling only
Heat pump
Total
2.6
0.6
3.2
8.8
1.9
10.7
Volume
no. units
2,601
459
3,060
Average
market
selling price
$3,394
$4,073
$3,496
Table 2.53 US-style ducted splits, by mode, 2000E

Value
Kuwaiti Dinar
US$
million
million
Cooling only
Heat pump
Total
2.6
0.6
3.2
8.7
1.9
10.6
Volume
no. units
2,653
468
3,121
Average
market
selling price
$3,297
$3,956
$3,396
26
Kuwait
Figure 2.5 US-style ducted splits analysed by size and mode, 2000E
By size
By mode
Heat pump
468 units
Under 17.85kW
3,603 units
Cooling only
2,653 units
Over 17.85kW
11,047 units
Total: 3,121 units

2.7
OTHER INDOOR PACKAGED

This is a catch-all category which includes all self-contained units except
windows, through the wall portables and rooftops. This category includes special
one-off systems.
Table 2.54 Other indoor packaged market, 1998-2000E
1998
1999
2000E
Market value
Dinar
US$
million
million
0.9
3.2
0.9
3.1
0.9
3.0
Volume
no. units
500
510
520
Average
market
selling price
$6,300
$6,048
$5,806
They will be a single unit comprising all the elements of cooling and air
distribution designed for internal mounting. Both ducted and non-ducted units
are available and air-cooled and water-cooled units are included. Units are
available which also provide heating by reverse cycle. Products in this category
are often called the following as well as indoor packaged : roof tops,
cabinet heaters; packaged terminal units (PTAC, PTHP) found in North
America, ceiling pack units, air-cooled and water-cooled consoles.
27
Kuwait
Table 2.55 Other indoor packaged, by size, 1998
<7 kW
7-18 kW
18-36 kW
> 36 kW
Total
Value
Volume
Average
Kuwaiti Dinar
US$
market
no. units
million
million
selling price
0
$0
0.1
0.3
75
$4,335
0.2
0.6
100
$5,574
0.7
2.3
325
$7,019
0.9
3.2
500
$6,300
Table 2.56 Other indoor packaged, by size, 1999
<7 kW
7-18 kW
18-36 kW
> 36 kW
Total
Value
Volume
Average
Kuwaiti Dinar
US$
market
no. units
million
million
selling price
0
$0
0.1
0.3
77
$4,200
0.2
0.6
102
$5,500
0.7
2.2
332
$6,650
0.9
3.1
510
$6,048
Table 2.57 Other indoor packaged, by size, 2000E
<7 kW
7-18 kW
18-36 kW
> 36 kW
Total
Value
Volume
Average
Kuwaiti Dinar
US$
market
no. units
million
million
selling price
0
$0
0.1
0.3
78
$4,200
0.2
0.5
104
$5,250
0.7
2.2
338
$6,500
0.9
3.0
520
$5,806
This is a very small market, with most units large air-cooled units for specific
applications. Daikin and Hitachi were providing some free standing units of
around 5 tons 3-4 years ago, but the main type is now ducted units. Water
cooled, which is the main type in the rest of the world is a small market in
Kuwait.
This segment was worth US$3 million in 1999. This segments market share is
expected to benefit from the general strengthening of the market.
28
Kuwait
Table 2.58 Other large packaged, by mode, 1998

Value
Volume
Average
Kuwaiti Dinar
US$
no. units
market
million
million
selling price
Cooling only
0.6
2.2
375
$5,890
Heat pump
0.3
1.0
125
$8,000
Total
0.9
3.2
500
$6,300

Value
Volume
Average
Kuwaiti Dinar
US$
no. units
market
million
million
selling price
Cooling only
0.6
2.1
383
$5,654
Heat pump
0.3
1.0
127
$7,680
Total
0.9
3.1
510
$6,048

Value
Volume
Average
Kuwaiti Dinar
US$
no. units
market
million
million
selling price
Cooling only
0.5
2.1
390
$5,300
Heat pump
0.3
0.9
130
$7,200
Total
0.9
3.0
520
$5,806
Table 2.61 Other large packaged, by cooling, 1998

Value
Volume
Average
Kuwaiti Dinar
US$
no. units
market
million
million
selling price
Air cooled
0.6
2.1
300
$6,847
Water cooled
0.3
1.1
200
$5,478
Total
0.9
3.2
500
$6,300
29
Kuwait

Value
Kuwaiti Dinar
US$
million
million
Air cooled
Water cooled
Total
0.6
0.3
0.9
2.1
1.1
3.1
Volume
no. units
Average
market
selling price
305
205
510
$6,576
$5,261
$6,048

Value
Volume
Average
Kuwaiti Dinar
US$
no. units
market
million
million
selling price
Air cooled
0.6
2.0
310
$6,316
Water cooled
0.3
1.1
210
$5,053
Total
0.9
3.1
520
$5,806
2.8
CLOSE CONTROL EQUIPMENT

These are systems designed to meet process or equipment needs. They are
specified in telecomms and computer room situations. Table 2.68 shows the
two main application sectors.
Table 2.64 Close control market, 1998-2000E
Market value
Kuwaiti Dinar
million
0.3
0.3
0.3
1998
1999
2000E
Volume
Average
US$
market
no. units
million
selling price
1.0
150
$6,700
1.0
155
$6,432
1.0
160
$6,175
Table 2.65 Close control market analysed by application, by value, 19982000E
$US million
Telecommunications
Computer rooms
Other sectors
Total
1998 sales
$US
%
0.6
60%
0.3
30%
0.1
10%
1.0
100%
1999 sales
$US
%
0.6
60%
0.3
30%
0.1
10%
1.0
100%
2000E sales
$US
%
0.6
60%
0.3
30%
0.1
10%
1.0
100%
30
Kuwait
Table 2.66 Close control, by size and type of cooling, volume, 1998
up to 7 kW
7-20 kW
> 20 kW
Total
Air cooled
units
%
0
0%
11
40%
19
60%
30
100%
Chilled water
units
%
0
0%
24
20%
96
80%
120
100%
Total
units
0
35
115
150
1%
24%
61%
100%
up to 7 kW
7-20 kW
> 20 kW
Total
Air cooled
units
%
0
0%
12
40%
19
60%
31
100%
Chilled water
units
%
0
0%
25
20%
99
80%
124
100%
Total
units
0
37
118
155
0%
24%
76%
100%
Cooling only
Heat pump
Heat recovery
Total
Air cooled
units
%
0
0%
12
40%
20
60%
32
100%
Chilled water
units
%
0
0%
26
20%
102
80%
128
100%
Total
units
0
38
122
160
%
0%
24%
76%
100%
2.9
REFRIGERANTS
R22, which is a relatively less environmentally harmful refrigerant, has been the
most widely used refrigerant in the past, and is expected to continue to be
extensively used over the coming years. This refrigerant is the most popular for a
majority of packaged unit systems. A few sales were found in 1998 but these
have now stopped. Sales of HFCs such as R407c are still comparatively rare, and
are most common for larger size equipment.
31
Kuwait
Table 2.69 Refrigerants used, by product, % sales by volume, 1999

Window,
through the
wall
R11 (cfc)
R12 (cfc)
R22 (hcfc)
100%
R134a (hfc)
R407c (hfc)
R410a (hfc)
Hydrocarbon
Total
100%
Moveable
/ portable
100%
100%
Ductless
splits
Roof top
US-style
ducted
90%
99%
90%
90%
1%
10%
10%
100%
100%
100%
Other large Close

packaged control
100%
100%
90%
10%
100%
Kuwait is categorized as operating under Article 5 paragraph 1 of the Montreal

Protocol. This means Kuwait is "... entitled to delay for ten years its compliance
with the control measures set out in Articles 2A to 2E...." . Kuwait signed up to
the protocol in November 1992 so it is not until 2002 that the ban on CFCs
becomes official.
2.10
COMPRESSORS
At least three-quarters of packaged units use reciprocating compressors,
Additionally, at least one-fifth of the smaller-sized units (windows, splits) use
rotary compressors. On the other hand, rotary compressors are not used by rooftop units and US-ducted, where scroll compressors are more popular.
Table 2.70 Compressors used, by product, % sales by volume, 1998
Window,
through the
wall
Reciprocating
70%
Rotary/Swing
25%
Scroll
5%
Total
100%
Moveable
/ portable
70%
25%
5%
100%
Ductless
splits
Roof top
US-style
ducted
70%
25%
5%
100%
85%
0%
15%
100%
85%
0%
15%
100%
Other large Close

packaged control
n/a
n/a
n/a
100%
n/a
n/a
n/a
100%
32
3.
Kuwait
MAJOR COMPANIES
A majority of the Kuwait air-conditioning market is supplied by 5-6 large
importers, which cumulatively account for more than 90% of all sales and who
bring in a number of leading international brands. The main countries from which
suppliers imported air conditioners in 1998, were:
Other Gulf countries - Saudi Arabia, UAE and Bahrain;

Asia-Pacific countries - Japan, Korea, Malaysia, Singapore and Thailand.
USA.
There are only two air conditioning assemblers in Kuwait - RIC (Coolex) and Al
Hassawi (Topcool); however, they account for less than 10% of the packaged unit
market. Exports / re-exports are almost negligible, accounting for about 5% of
total annual sales. After the Gulf War Kuwait is pro USA with Carrier, Trane and
York particularly successful.
3.1
SMALL SYSTEMS
Table 3.1 Market leaders for window and mobile products, 1999
Market leaders
(Importers)
Their share (%)

Other significant
companies
Their share (%)

Others (%)
Total
Window/wall
Hamad Abdulla Al Eisa (Craft, Gibson, Trane)
Al Yousufi (York)
Union Trading Co.(General)
Supplying Store (Sanyo)
Kuwait American Air-conditioning Co. (Carrier)
Easa (National)
80%
Y. A. Alghanin (Hitachi)
Awael Al Kuwait (Pearl)
Al Andulas Trading Co (Samsung)
Al Babtain / Electronic Appliances (LG)
Y.A. Algahanim (Toshiba,Hitachi)
10%
10%
100%
Mobile/portable
Al Yousufi (York)
Union Trading Co. (General)
95%
(Fragmented)
5%
100%
General, National, Alessa (Gibson, Craft) are understood to dominate the window
market but there are also a number of other big brands gaining share, notably
Sanyo, Hitachi, Daikin and Carrier, Trane and York (whose 50 kW products are
made by Alessa in Saudi).
33
Kuwait
Table 3.2 Market leaders for ductless split systems, 1999

Market leaders
(Importers)
Their share (%)

Other
significant
companies
Their share (%)

Others (%)
Total
Single splits
Hamad Abdulla Al Eisa (Craft, Gibson)
Al Yousufi (York)
Kuwait American Air-Conditioning Co. (Carrier)
Easa (National)
80%
Al Babtain / Electronic Appliances (LG)
Y. A. Alghanim (Hitachi, Toshiba)
Awael Al Kuwait (Pearl)
Al Andalus Trading Co. (Samsung)
Kuwait Japanese Air Conditioning Co (Daikin)
SKM
Al Hassawi (Topcool)
RIC (Coolex)
15%
5%
100%
The largest players for minisplits are National, Sanyo, General and Alessa
(Gibson, Craft). Other major players are Carrier, Trane, York and increasing
involvement from Hitachi, LG, Samsung, Pearl and Daikin.
34
3.2
Kuwait
LARGE PACKAGED UNITS
Table 3.3 Market leaders for large packaged air conditioning equipment,
1999
Market leaders
Their share (%)

Other significant
companies
Roof top
Hamad Abdulla Al Eisa (Craft, Gibson,
Trane)
Al Yousufi (York)
Kuwait American Air Conditioning
Company (Carrier)
Y. A. Alghanim (Hitachi, Toshiba,
Goodman)
SKM
RIC (Coolex)
85%
Easa (National)
Eubank (Eubank US)
Others
Their share (%)

Others (%)
Total
10%
5%
100%
US-style ducted
Hamad Abdulla Al Eisa
Al Yousufi (York)
Kuwait American Air-conditioning Co.
(Carrier)
Kuwait Japanese Air-conditioning Co.
(Daikin)
85%
Easa (National)
Y.A. Algahanim (Toshiba, Hitachi,
Goodman)
SKM
Eubank (Eubank US)
Others
10%
5%
100%
York and Trane are the leaders of the villa market and rooftops as a whole closely
followed by Carrier and also SKM, Coolex, Hitachi. For ducted splits, the
market leaders are Carrier, Trane and York, with activity from Goodman,
Unionaire, Rheem, Hitachi and SKM also significant. Goodman are understood
to sell under different brand names for certain dealers; GMC, Alsaka, Goodman
and Janitrol.
For close control there are fewer players than in the rest of the Far East because
of the small market in Kuwait. Again Liebert-Hiross are very strong, but Airedale
has a significant presence along with the US companies Trane, Lennox, and Data
Aire.
Table 3.4 Market leaders for cl ose control
Market leaders
(Importers)
Their share (%)
Other
significant
companies
Close control
Bader Al Mulla (Liebert US, Liebert-Hiross)
>40%
Kazema Engineering Projects (Airedale)
Al Magwa Trade (Airedale)
Trane
Al Ahila (Lennox)
Data Aire (Data Aire, US)
35
Kuwait
36
3.3
Kuwait
PRODUCT RANGE OF LEADING SUPPLIERS

Table 3.5 Product range of major suppliers
Company
Window Mobile
/ wall units
Al Ahila
Split Rooftop
US
fixed
units
ducted
systems
I
I
I
Other
large
Close
control
Lennox
Korea
Samsung
Korea (after 1999)
LG (after 1999)
Saudi Arabia
Alessa (Craft,
Gibson)
Trane
Al Hamed Al Eisa
Al Hassawi
Al Magwa Trade
USA/Latin America,
France
Local Assembly
I
Al Turki Est
Al Yousufi
Awael Al Kuwait
Bader Al Mulla
Topcool
UK
Airedale
USA
Goodman
Saudi Arabia
York
(windows),
Thailand (minisplits),
USA (packaged,
ducted)
Bahrain
Pearl
Bader Al Mulla
Origin company
USA
Al Andalus
Trading
Al Babtain
Electronics
Al Hamed Al Eisa
Country of
manufacture
Malaysia
I
Japan, Thailand
McQuay (McQuay
Ascos brands)
Mitsubishi Heavy
Easa
Japan, Malaysia
Electronics
Appliances
Fawaz
Refrigeration and
Air Conditioning
Gulf Engineering
Company (GEC)
Gulf Engineering
Company (GEC)
Kazema
Engineering
Projects
Kazema
Engineering
Projects
Kuwait American
Air-conditioning Co
Kuwait
Electronics
Kuwait Japanese
Air-conditioning
Co
RIC
Korea (until 1999)
National
(Matsushita)
LG (until 1999)
Malaysia
Dunham Bush
Japan, Thailand
Mitsubishi Heavy
I
I
USA
Rheem
USA
Goodman
UK
Airedale
USA, Saudi Arabia,

Korea
Japan, Thailand,
Malaysia
Japan
Carrier
Sharco
International
SKM
Supplying Store
Local Assembly
RIC
USA
Goodman
I
I
Y.A. Alghanim
Industries
Daikin
Trane
Union Trading Co.
Mitsubishi Electric
UAE
SKM
Japan, Singapore
Sanyo
USA
Trane
Japan, Saudi Arabia Fujitsu General

I
UK, Japan, Thailand
Toshiba
37
Y.A. Alghanim
Industries
Y.A. Alghanim
Industries
Kuwait
USA
Goodman
Japan, Asia
Hitachi

Key:
M manufacture; I import
38
Kuwait
Table 3.6 Manufacturing information of major suppliers

Company
Local
production
Al Andalus Trading
No
Al Babtain / Electronic Appliances

Al Hamad Al Eisa
No
No
Imports
Company
(manufacturer)
Samsung (Korea)
Al Hassawi
Al Yousufi
Awael Al Kuwait
Easa
Kuwait Japanese Air-conditioning Co
Yes
No
No
No
No
LG (new)
Craft, Gibson (Saudi Arabia), Trane
(USA)
Topcool
York (Saudi Arabia, Thailand, USA)
Pearl (Bahrain)
National/Panasonic (Japan, Malaysia)
Daikin (Japan)
Kuwait American Air-conditioning Co

RIC
SKM
Supplying Store
Union Trading Co.
Y. A. Alghanin
No
Yes
No
No
No
No
Carrier (USA, Saudi Arabia, Korea)

Coolex
SKM (UAE)
Sanyo (Japan, Singapore)
General (Japan, Saudi Arabia)
Hitachi, Goodman, Toshiba
The two main manufacturers are RIC and Al Hassawi (Topcool). The two
companies focus on minisplits and some large packaged production is primarily
aimed at the local Kuwaiti market.
Prior to the Iraqi occupation in 1990, only Refrigeration Industries Company
(RIC) produced York air conditioning equipment direct expansion systems, and
minisplit units under licence. RIC, which is 70% owned by the government of
Kuwait, was destroyed during the war. In early 1993 RIC re-established and
rresumed its production activities under its own brand name Coolex. RIC is
seeking to form a joint venture with well known international firms to
manufacture air conditioners under the foreign firms name in Kuwait, and may
move into the window market.
As a Kuwait government-owned firm, RIC benefits from a 10% margin on all
government tenders, and is expected to possess a large share of the market within
the next two years.
Production of the Topcool brand is mainly limited to condensing units.
39
Kuwait
4.
SALES TRENDS AND FUTURE FORECAST
4.1
HISTORICAL SALES TREND

The packaged unit air-conditioning market in Kuwait has witnessed little change
in volume terms over the past few years. This could be attributed to the growth in
non-window packaged units marginally offsetting the declining sales of the highvolume window units. The past five years have seen mini-split unit volume sales
surpass window unit volume sales; roof-top unit sales have also been increasing.
Figure 4.1 Kuwait packaged market value (US$ million), current prices,
1996-2000E
$120M
$100M
$91M
$92M
$92M
$90M
1996
1997
1998
1999
$87M
$80M
$60M
$40M
$20M
$0M
2000
Source: BSRIA/ ACNielsen AMER
Volume sales have declined by approximately 2% over the past 2-3 years.
Table 4.1 Historical trend for packaged air conditioning, volume (units),
1996-2000E
Window/through-wall
Mobile(portable)
Roof tops
Close control
Grand total
1996
67,904
1,000
27,211
14,418
2,884
481
140
114,037
1997
63,830
1,000
28,571
14,706
2,941
490
145
111,684
1998
60,000
1,000
30,000
15,000
3,000
500
150
109,650
1999
56,400
1,000
31,500
15,300
3,060
510
155
107,925
2000E
53,016
1,000
33,075
15,606
3,121
520
160
106,499
CAGR
-6.0%
0.0%
5.0%
2.0%
2.0%
2.0%
3.3%
-1.7%
40
Kuwait
The years 1997 and 1998 were relatively bad years in view of the crash of oil
prices; this led to a decline in construction activity. In turn, this had a direct
impact on the air-conditioning industry, resulting in very low growth rates in
volume as well as revenue terms.
Table 4.2 Historical trend for packaged air c onditioning, value at current
prices (Kuwaiti Dinar million), 1996-2000E
Kuwaiti Dinar millions
Window/through-wall
Mobile(portable)
Roof tops
Close control
Grand total
1996
8.1
0.3
6.5
8.2
3.1
0.9
0.2
27.3
1997
7.6
0.3
6.8
8.4
3.1
0.9
0.3
27.5
1998
7.2
0.3
7.2
8.6
3.2
0.9
0.3
27.7
1999
6.5
0.3
7.3
8.4
3.1
0.9
0.3
26.9
2000E
5.9
0.3
7.3
8.2
3.1
0.9
0.3
26.0
CAGR
-7.7%
-2.0%
3.0%
0.0%
1.0%
0.0%
3.3%
-1.2%
Table 4.3 Historical trend for packaged air conditioning, value at current
prices (US$ million), 1996-2000E
US$ millions
Window/through-wall
Mobile(portable)
Roof tops
Close control
Grand total
1996
27.0
1.1
21.7
27.4
10.3
3.0
0.9
91.4
1997
25.4
1.1
22.8
27.9
10.5
3.1
0.9
91.7
1998
24.0
1.1
24.0
28.5
10.7
3.2
1.0
92.4
1999
21.7
1.1
24.2
27.9
16.1
3.1
1.0
89.7
2000E
19.5
1.0
24.4
27.3
10.6
3.0
1.0
86.9
CAGR
-7.7%
-2.0%
3.0%
0.0%
1.0%
0.0%
3.3%
-1.3%
Sales of window units have been declining at 6% per annum for the past 2-3
years. This trend is expected to continue. On the other hand, the revenues from
other packaged units have increased at 2-5% annually.
4.2
FUTURE SALES FORECAST

Window unit sales are expected to continue to decline over the next five years; it
is expected that by the year 2004, window units will account for 38% of packaged
unit volumes in Kuwait, compared with 60% in 1996. The highest potential for
growth is expected to be for mini-splits (ductless splits), followed by rooftop and
US-ducted units. The overall CAGR (compound annual growth rate) is expected
to be much stronger over the next five years. The Kuwaiti government is planning
some large residential projects over the next few years; this will result in an
upward trend in the air-conditioning industry in general in Kuwait. Rooftops and
US-ducted split which are used in villas will benefit particularly from this.
41
Kuwait
Figure 4.2 Kuwait packaged market, value (US$ million), 2000-2004E

(2000 prices)
$120M
$108M
$102M
$100M
$87M
$91M
$96M
$80M
$60M
$40M
$20M
$0M
2000
2001
2002
2003
2004
Table 4.4 Forecast for packaged air conditioning, volume (units), 20002004
Window/through-wall
Mobile(portable)
Roof tops
Close control
Grand total
2000
53,016
1,000
33,075
15,606
3,121
520
160
106,499
2001
50,895
1,000
36,383
16,698
3,340
557
171
109,044
2002
48,860
1,000
40,021
17,867
3,573
596
183
112,099
2003
46,905
1,000
44,023
19,118
3,824
637
196
115,703
2004
CAGR
45,029 -4.0%
1,000
0.0%
48,425 10.0%
20,456
7.0%
4,091
7.0%
682
7.0%
210
7.0%
119,893
3.0%
Though window unit sales will continue to decline, the growth in sales of the
larger, higher-value packaged units will lead to an increase in overall revenues
over the next five years. As with volume sales, the highest potential for revenue
growth is expected to be for US-ducted splits.
42
Kuwait
Table 4.5 Forecast for packaged air conditioning, value (Kuw aiti Dinar
million),
2000-2004
Kuwaiti Dinar millions
Window/through-wall
Mobile(portable)
Roof tops
Close control
Grand total
2000
5.9
0.3
7.3
8.2
3.2
0.9
0.3
26.0
2001
5.6
0.3
8.0
8.8
3.4
1.0
0.3
27.0
2002
5.4
0.3
8.9
9.4
3.7
1.0
0.3
28.0
2003
5.2
0.3
9.7
10.0
3.9
1.1
0.4
30.7
2004
CAGR
5.0 -4.0%
0.3
0.0%
10.7 10.0%
10.7
7.0%
4.2
7.0%
1.2
7.0%
0.4
7.0%
32.6
5.6%
Table 4.6 Forecast for packaged air conditioning, value (US$ million),
2000-2004
US$ millions (2000 prices)
Window/through-wall
Mobile(portable)
Roof tops
Close control
Grand total
2000
19.5
1.0
24.4
27.3
10.6
3.0
1.0
86.9
2001
18.8
1.0
26.8
29.2
11.3
3.2
1.1
91.5
2002
18.0
1.0
29.5
31.3
12.0
3.5
1.1
96.4
2003
17.3
1.0
32.5
33.5
12.9
3.7
1.2
102.0
2004
CAGR
16.6 -4.0%
1.0
0.0%
35.7 10.0%
35.8
7.0%
13.8
7.0%
4.0
7.0%
1.3
7.0%
108.2
5.6%
43
Kuwait
Figure 4.3 Trend for packaged air conditioning, value (US$ million),
1996-2004
40.0
35.0
US$ million
30.0
25.0
20.0
15.0
10.0
5.0
0.0
1996
1997
1998
1999
2000E
2001
2002
2003
2004
Window/through-wall
Mobile(portable)
Roof tops
Close control
44
5.
PRODUCERS, IMPORTERS AND EXPORTERS
5.1
BALANCE OF TRADE
Kuwait
The overall balance of trade for the air-conditioning industry in Kuwait is highly
negative, with imports of 70-75% of sales volume.
Table 5.1 Balance of trade, packaged equipment, 1999 estimates
Units.
Window/through-wall
Mobile(portable)
Roof tops
Close control
Home
%
%
Market
market
Imports
Production
production
size 99
imported
1998
exported
56,400
70%
39,480
18,000
6%
1,000
100%
1,000
0
0%
31,500
70%
22,050
10,000
6%
15,300
75%
11,475
3,825
0%
3,060
80%
2,448
612
0%
510
75%
383
127
0%
155
100%
155
0
0%
Exports
1,080
0
550
0
0
0
0

Note:
Balance of trade is an economic concept that relates to how self-sufficient a country is in terms of
producing something that is also consumes (like food or oil). Trading activities are separate from this.
They have been excluded from the table and are explained separately in the paragraph below.
5.2
LOCAL PRODUCERS
There are two main local producers / assemblers of air-conditioning units in
Kuwait: Al Hassawi (Topcool) and RIC (Coolex). They account for 25% volume
sales of rootops and other large packaged units in Kuwait.
5.2.1
Importers
The Kuwait packaged air-conditioning market is dominated by five importers,

which account for 85-90% of the vo lume sales. These importers are Union
Trading Co., Al Yousufi, Hamad Abdul Al Eisa, Kuwait American Airconditioning Co. and Supplying Store. A majority of the imports of packaged
units come from other Middle East countries, the Far East and the USA.
5.2.2
Re-exportation and trading activities
Re-exportation activity from Kuwait is negligible, if carried out at all.
45
6.
DISTRIBUTION
6.1
GENERAL
Kuwait
The Kuwait packaged air-conditioning market is dominated by imports. Other

than the importers, there are two local assemblers, but they account for a
relatively small proportion of the market.
In terms of the overall distribution chain, the importers / suppliers sell their units
either through their own dealers / retailers or through independents. Almost 30%
of packaged units are distributed through their own retail outlets by the
importers, while a further 30% is routed through independent outlets. Very few,
if any, importers sell directly to households and commercial establishments; this
activity is largely carried out through mechanical and electrical companies,
contractors and construction companies.
Roughly one-third of the retail outlet sales go directly to the end-consumers,
while one-third each of the balance goes via building construction companies and
electro-mechanical contractors / architects.
Table 6.1 Distribution of packaged equipment, % by value, 1999
Window,
through the wall
35%
30%
Installer/contractor
Importers own retail
outlet
Other independent
30%
retail outlets
Direct to end user
5%
Total
100%
Moveable
/ portable
30%
35%
Minisplits RAC
Roof top
US-style ducted
35%
30%
50%
30%
50%
30%
25%
30%
10%
10%
10%
100%
5%
100%
10%
100%
10%
100%
46
7.
Kuwait
PRICES, DISCOUNTS, MARGINS AND PROFITABILITY

Prices of most types of packaged units have been declining, primarily due to
increasing competition in the market. The downward trend in prices is expected
to continue.
Table 7.1 Prices typically paid for packaged equipment, 1999
Size and type
Window/through-wall
Mobile(portable)
Minisplits (ductless)
Roof tops
Close control
1-ton to 3-ton
2-ton
1.5-ton to 3-ton
5-ton to 10-ton
3.5-ton to 12.5-ton
n.a.
n.a.
Price range
Kuwaiti Dinar
120-190
350-450
270-400
n.a.
n.a.
n.a.
n.a.
Price range
US$
400-650
1150-1500
900-1350
n.a.
n.a.
n.a.
n.a.
Source: Suppliers pricing
7.1
DISCOUNTS
Most importers give discounts regularly to their dealers / retailers, ranging from
5-15% depending on the volume of purchase. Discounts are typically offered to
regular customers.
7.2
PROFITABILITY
Gross profit margins vary, depending on the type of air conditioners sold;
however, on average, the margins for packaged units are 10-20%. On average,
profit margins on window units are slightly lower than those on other packaged
units.
7.3
CREDIT
Importers usually provide credit facilities to their buyers; credit is typically
provided to regular customers either dealers / retailers or large customers. The
credit terms range from one to six months, with the norm being two to three
months.
47
Kuwait
8.
END USER SECTOR AND APPLICATIONS
8.1
END USER SECTORS

A majority of window units are installed in residential buildings / old villas; they
can also be found in some old / traditional shops and offices. Quite a few of the
window units are purchased by expatriates (Arabs and Asians) in order to carry
them back to their home countries, for residential purposes. A majority of split
units are found in residential areas and offices / shops. Some of the larger
packaged units (roof-tops, US-ducted, others) have been installed in residences; a
majority of them are in offices, shops, factory offices, etc.
Table 8.1 Building sectors for packaged equipment, % by value, 1999
Window,
Moveable
through the wall
/ portable
Offices
10%
15%
Shops
10%
15%
Leisure/hotels
10%
Public
10%
Industrial
Residential
70%
60%
Total
100%
100%
8.2
Minisplits
Rooftop
25%
10%
15%
10%
40%
100%
15%
10%
10%
5%
10%
40%
100%
US-style
ducted
20%
10%
10%
10%
15%
35%
100%
Other large
packaged
30%
15%
15%
15%
20%
5%
100%
APPLICATIONS
Relatively few new buildings are installing window units; primary sales of such
units are in the replacement market. The preferences are clearly shifting towards
non-window packaged units. Most new residences prefer split units, mostly fixed/
min-splits, but villas use mostly rooftops and (to a lesser extent) ducted split
systems. In commercial applications (shops, offices, etc.) rooftops and USducted units are also strong.
Table 8.2 Applications for packaged air conditioning, % by value, 1999
Window,
through the
wall
New building
15%
Upgrade existing building
20%
Replace old equipment
65%
Total
100%
Moveable
/ portable
55%
25%
20%
100%
Minisplits
50%
25%
25%
100%
Roof top
US-style
ducted
50%
35%
15%
100%
50%
35%
15%
100%
48
9.
MAIN SPECIFIERS
9.1
SPECIFICATION PROCESS
Kuwait
There are some differences across different types of units, in terms of their
specifiers; for window units and splits, the end-users play a major role in the
capacity and brand decisions. For such units, the retailers / trade play an
important role in the decision making process also. However, the building
contractors / construction companies, system consultants and the installers /
electro-mechanical companies become more important for the roof-top and USducted packaged units.
Table 9.1 Specification of packaged equipment, % value, 1999
Window,
through the
wall
System consultant
Installer/contractor
25%
Retailer
25%
End user
50%
Total
100%
Moveable
/ portable
20%
20%
60%
100%
Minisplits
20%
20%
60%
100%
Rooftop
US-style
ducted
40%
45%
10%
5%
100%
40%
45%
10%
5%
100%
49
10.
MARKET ENTRY
10.1
MARKET ACCESS
Kuwait
Aside from a 4% import duty, access to the Kuwait market is unrestricted. The
government elevated tariffs on a limited number of items before the invasion to
protect local production. According to some reports, the government of Kuwait
will continue to impose the 15-20% tariff on imports of 4 to 20 ton DX units.
Foreign firms without a local agent and a signed agency agreement, duly
registered with the Kuwait Chamber of Commerce and Industry and the Ministry
of Commerce and Industry, are not allowed to bid on Kuwait government tenders.
Power supply in Kuwait is 220V/1phase/50Hz or 415V/3phase/50Hz.
There are no regulations or controls over movement of foreign exchange, or any
ban on trade with other countries (except Iraq). Parties interested in setting up a
local company need to have the majority partner (in terms of capital) as a Kuwaiti
national and only then would they be able to get the necessary permit from the
Ministry of Commerce and Industry. Kuwait is categorized as operating under
Article 5 paragraph 1 of the Montreal Protocol. This means Kuwait is "... entitled
to delay for ten years its compliance with the control measures set out in Articles
2A to 2E...." . Kuwait signed up to the protocol in November 1992 so it is not
until 2002 that the ban on CFCs becomes official.
10.2
RECOMMENDATIONS FOR MARKET ENTRY

A majority of the Kuwait packaged unit market is supplied by importers; there are
only two local manufacturers / assemblers. Many of the importers are exclusive
agents for a particular brand, but it is also possible to be a non-exclusive agent.
For a new company to enter the market, it would be more feasible to be appointed
an agent or to establish agreements to license local companies to sell certain
types of units.
Table 10.1 Methods of entering Kuwaiti packaged market
Licensing local companies
Joint venture
Via agents
Via distributors
Open sales office
Build factory-with a local partner
Acquisition
Source: BSRIA Note:
Cost
6
6
8
N/A
N/A
6
N/A
Time
6
6
8
N/A
N/A
6
N/A
Likely success
6
7
8
N/A
N/A
6
N/A
1 = least favourable, 10 = most favourable.
Private Kuwaiti companies usually make payment to foreign suppliers by opening

irrevocable letters of credit through local commercial banks. Government
50
Kuwait
agencies pay directly through the Central Bank of Kuwait, as well as with letters
of credit.
51
Room and Packaged Air conditioning
Appendix A
APPENDIX A
Building costs and construction forecasts for Kuwait
No. of pages: 2
A-1
Appendix A
Table A 1 Forecast for Kuwaiti construction industry (% pa growth in real

terms)
New building
Commercial
- Offices
- Shops
- Hotels
Industrial buildings
Government non-housing
Private housing
1999-2000
2000-2001
+5%
+5%
+5%
+2%
+2%
+6%%
+6%
+6%
+6%
+2%
+2%
+7%%
2001-2002
+6%
+6%
+6%
+2%
+2%
+7%
Source: BSRIA/Atieh Bahar
Table A 2 Building costs per square metre, some international

comparisons (US$)
High rise
apartments
-
high
$923
$633
$633
$487
$487
Premier
Hotel
low
high
low
high
$1,240
$1,077
$1,077
$590
$590
$792
$540
$540
$343
$343
$1,320
$1,348
$1,348
$397
$397
$1,451
$943
$943
$823
$823
China
$454 - $574
Japan $2,247 - $2,494
India $233 - $467
Thailand $487 - $590
$933
$905
$164
$343
$1,137
$2,247
$351
$397
$1,387
$3,162
$935
$823
United Kingdom $1,378 - $1,878

Germany
$971 - $1,246
France
$789 - $1,315
Italy $891 - $1,307
$1,304
$794
$702
$1,484
$2,337
$2,011
$1,140
$1,781
$2,050
$2,058
$1,491
$1,187
Saudi Arabia
UAE
Kuwait
Egypt
Iran
low
Shopping
Centre
Air conditioned
Offices
low
high
$1,979
$2,022
$2,022
$959
$959
$335
$540
$540
$631
$631
$421
$943
$943
$699
$699
$1,830
$4,651
$1,168
$959
$802
$2,181
$467
$631
$2,427
$2,645
$2,104
$2,078
$1,902
$1,410
$1,227
$1,128
Industrial
space
low
high
$246
$243
$243
$197
$197
$317
$674
$674
$246
$246
$1,327
$3,557
$700
$699
$335
$1,071
$187
$197
$574
$1,548
$280
$246
$2,690
$2,058
$1,753
$1,781
$377
$589
$351
$476
$689
$1,028
$438
$950
Source: BSRIA analysis of Gardiner & Theobald data.

The above descriptions are indicative only, as construction specification and requirements will vary
between countries. Therefore, building costs are for typical buildings in each country.
A-2
Appendix B
APPENDIX B
Economic profile, Kuwait
No. of pages: 2
B-1
Appendix B
Commercial as well as residential construction activity in Kuwait has

experienced both growth and decline. The years 1997 and 1998 saw a decline in
economic activity, with the crash of oil prices; this led to a decline in
construction activity as well.
Prior to this, 1995 and 1996 saw construction activity increase to an extent, with
a mix of new construction as well as renovation activity. All in all, the market has
witnessed mixed trends, with different patterns observed for different types of air
conditioners.
The past five years have witnessed relative ly higher construction activity in the
residential sector than in the commercial sector, and this trend is expected to
continue. Moreover, there are indications that over the next 1-2 years, the
National Housing Authority is planning to allot a large number of new plots of
land for residential construction. The estimates for the number of plots range
from 10,000 to 50,000. This should have a positive impact on the airconditioning industry as well.
Some experts are of the opinion that the construction industry will remain stable
over the next five years.
B-2
Appendix C
APPENDIX C
Monthly temperatures, Kuwait City
No. of pages: 2
C-1
Appendix C
Figure C 1 Average temperatures, Kuwait City, C
50
36
40
38
37
31
30
33
27
25
20
19
20
13
15
14
10
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Source : Worldclimate.Com
C-2
Appendix D
APPENDIX D
Map of Kuwait
No. of pages: 2
D-1
Appendix D
Figure D 1 Map of Kuwait
D-2
Appendix E
APPENDIX E
Background notes on Kuwait compiled by the British Embassy, Kuwait
May 1999
No. of pages: 3
E-1
1.
KUWAIT: LONG TERM POTENTIAL
1.1
HOUSING (GENERAL)
Appendix E
There are an estimated 50,000 applications on the waiting list for housing, with a
potential for a further 150,000 applications within the next 20 years. There is
much talk of the need to reform the system whereby all eligible Kuwaitis can
obtain KD 70,000 as a long-term (59 years), interest free loan for housing.
Proposals include replacing this, perhaps by establishment of a housing bank
providing more normal styles of mortgages, eg loans repayable over 20 years.
Many Kuwaitis are well able to finance building their homes, but no changes have
yet been implemented. There have also been difficulties with the allocation of
land for house construction and the provision of the necessary infrastructure. The
current Government funding shortage is holding up several of the larger schemes.
There are plans for large-scale housing schemes in various parts of Kuwait. Some
of these are under construction but there has been a tendency for much of this to
be carried out in a piecemeal fashion. Some smaller developments (eg 30-50
houses) have now been built with private finance.
Kuwaiti contractors carry out most of the construction work itself. However,
there are opportunities in the area, eg. building materials, interior design,
furniture/fittings etc.
Table E 1 Distribution of housing plots in the city according to type
Plot type
1 villas (400 m2)
2 villas (600 m2)
3 villas (800 m2)
4 buildings
5 buildings
Total
No.
17,600
5,280
2,640
7,920
10,560
4,400
% total
40%
12%
6%
18%
24%
100%
Source: Official statistics

Note:
* You can find other plots in different sizes (200-250-300 m 2)
1.2
HOUSEBUILDING IN KUWAIT
The most often quoted overall figure is a current requirement for 50,000 units,
with 100,000 units required over the next ten years - though some say between
150-200,000 in total to 2015/2020. Some will argue that there are already up to
40,000 empty units of accommodation, many of these are flats - so why do they
need to build so many more ? However, one of the stumbling blocks is that
Kuwaitis traditionally like to live in houses, not apartments.
Also there is a debate on where new housing should be built. There have been
proposals that there should be several new satellite cities around the border ; and
there has been a recent revival of the plans to build a large new city in the north,
at Sabiya. A new authority/committee is being formed to oversee this. The
E-2
Appendix E
municipality would also like to see a regeneration of the centre of Kuwait city
itself.
E-3
Appendix E
The National Housing Authority is building 2500-3000 units a year - insufficient

to meet the demand. There is also a system whereby eligible Kuwaitis can obtain
an interest-free loan of KD 70,000 ($230,000 approx), repayable over about 60
years. Whether all Kuwaitis need this facility is open to debate.
1.3
POPULATION TRENDS
The population of Kuwait will reach 3.8 million by 2015 and this calls for
building new cities in remote areas of the country, says an official at Kuwait
Municipality. Speaking to a local Arabic daily, the Director of the
Municipalitys computer Information System Department Waleed Al-Jassem said
civic areas do not have the capacity to support any population exceeding 2.3
million.
Such being the case it is necessary to seek other alternatives by establishing
cities in remote areas. and the border, such as AlSubbiya, Jassem was quoted as
saying. Apart from meeting the increase in population the border, cities will
achieve strategic objectives such as national and economic security, he added.
The projects to build cities will offer investment opportunities for the national
capital, create jobs and result in use of land to build touristic and recreational
facilities, Jassem said. In this context, he said the first proposal to establish AlSubbiya City was put forward in 1971 and its necessity has been confirmed by
studies conducted in 1978, 1983, 1985 and 1995. On directions by HH the Amir
Sheikh Jaber Al-Abmed Al-Sabab the master plan of Al-Subbiya was revised
recently to add a flyover linking the proposed city to the Capital in addition to
evolving the waterfront situated opposite the area.
Jassem said the salient features of the states third master plan includes the need
to build new cities and defined areas marked as major natural resources. The
plan has also confirmed the importance of building new schools far from
residential areas and establishing a new university capable of accommodating the
increasing numbers of Kuwaiti students.
Jassem said the state master plan stressed the importance of upgrading
government hospitals. The plan has also called for repair work on major roads
including Fahaheel Motorway, AI-Maghreb Expressway, Jamal AbdulNaser Street
and the Fifth and Sixth Ring Roads.
source : British Embassy, Kuwait, May 1999
E-4
Appendix F
APPENDIX F
Detailed product definitions and capacity conversions
No. of pages: 6
F-1
Appendix F
GENERAL NOTES ON AIR CONDITIONING

Across the world all air conditioning equpment falls into two types, either
Packaged or Central plant.
Packaged air conditioning equipment
Includes all direct expansion (DX) systems. Warm air in a room is cooled by passing it
directly through copper pipes which contain the cold refrigerant vapour. Water is not
required as a secondary heat transfer fluid, the cooling happens directly between the air
and the refrigerant in the pipe, hence the term 'direct expansion'. Multiple split systems
and ducted packaged systems are also defined as packaged plant.
Central plant air conditioning equipment
These are usually larger systems which use a Chiller. A chiller is a large machine which
is located in a central place and produces a lot of very cold water. Two things can
happen to the cold water :
1)
the water is piped directly from the chiller to a large number of Fan Coils which
are located throughout the building. In the fan coil air is blown through the pipes
which contain the cold water. In this case the fan coil device is referred to as a
water-based terminal unit.
2)
the water is sent to an Air Handling Unit which is a big air box which produces a
lot of very cold air. This cold air is then ducted to a large number of smaller air
boxes which are located throughout the building. In this case the small air box is
called an air-based terminal unit.
Family tree of air conditioning equipment

Air conditioning
Central plant
Packaged plant
Chillers
Heat rejection equipment
Ducted air
Chilled water
Air handling units

VAV units
Fan coil units
Source: BSRIA
F-2
Appendix F
CAPACITY CONVERSION
moveables
windows
thru the wall
conventional
splits
VRF
multisplits
Roof tops
US-style ducted
splits
Other large
indoor
packaged
Kilowatts
0 - 3.5
3.5 - 5.0
over - 5.0
Cooling tonnes
0 - 1.0
1.00 - 1.4
over - 1.4
BTUs
0 - 11,900
11,900 - 17,100
over - 17,100
Kilowatts
0 - 3.5
3.5 - 5.0
over - 5.0
Cooling tonnes
0 - 1.00
1.00 - 1.40
over - 1.40
BTUs
0 - 12,000
0 - 17,000
over - 17,000
Kilowatts
0 - 3.5
3.5 - 5.0
5.0 - 7.0
7.0 - 10.0
10.0 - 17.0
over - 17.0
Cooling tonnes
0 - 1.00
1.00 - 1.42
1.42 - 2.00
2.00 - 2.84
2.84 - 4.83
over - 4.83
BTUs
0 - 12,000
12,000 - 17,000
17,000 - 24,000
24,000 - 34,000
34,000 - 58,000
over - 58,000
Kilowatts
14
23
29
Cooling tonnes
4.0
6.5
8.2
Kilowatts
0 - 7.0
7.0 - 10.0
10.0 - 17.85
17.85 - 50.00
over - 50.0
Cooling tonnes
0.0 - 2.0
2.0 - 3.0
3.0 - 5.0
5.0 - 14.0
over - 14.0
BTUs
0 - 24,000
24,000 - 34,000
34,000 - 61,000
61,000 - 171,000
over - 171,000
Kilowatts
0 - 17.58
over - 17.58
Cooling tonnes
0 - 5.00
over - 5.00
BTUs
0 - 60,000
over - 60,000
Kilowatts
0 - 7.0
7.0 - 10.0
10.0 - 17.85
17.85 - 50.00
over - 50.0
Cooling tonnes
0.0 - 2.0
2.0 - 3.0
3.0 - 5.0
5.0 - 14.0
over - 14.0
BTUs
0 - 24,000
24,000 - 34,000
34,000 - 61,000
61,000 - 171,000
over - 171,000
BTUs
50,000
80,000
100,000
F-3
Appendix F
WINDOW/THROUGH THE WALL

Supplied and installed as a single unit
typically in a casing. Protrudes though the
wall or window of the room in which it is
installed. Suitable for single rooms only
and limited to a maximum of
approximately 6kW.
Available as cooling only, heating by
reverse cycle or heating coils (2-3kW)
Dx , i.e refrigerant based system.
MOVEABLES/PORTABLE
Units are designed to be moveable without
re-installation, suitable for residential/light
commercial use. Supplied as selfcontained single unit with exhaust hose or
as a split system using an umbilical
connection consisting of flexible
refrigerant pipework and electrical cables.
SPLITS (JAPANESE STYLE)
Referred to as mini-splits/ductfree
splits/ductless splits). A system
comprising two items of equipment
connected by site-installed refrigerant
pipework and control wiring. Outdoor units
consists of a compressor, condenser and
cooling fans. Indoor units consists of an
evaporator, expansion control, possibly air
circulation fans, filters, drainage,
humidifier and possibly pump
Three different outdoor units apply:
1) single splits (1:1)
2) conventional multi-splits (1:2, 1:3, up to 1:5, with largest outdoor units up to 9kW)
3) VRF(variable refrigerant flow) - typically 1:8, but up to 1:16 and recently up to 1:32.
outdoor units, up to >29kW - all indoor with electronic valve
Can be cooling only, heat pump,or heat recovery
Dx , i.e refrigerant based system
Indoor units include: suspended ceiling, hi-wall, floor standing, cassette, ceiling
concealed
F-4
Appendix F
(ducted) and consoles (multi-purpose)
F-5
Appendix F
US-STYLE DUCTED SPLITS
Technically the same principle as for

Japanese-style splits, although
differences are:
pillar box type outdoor units
vertical discharge, as opposed to
horizontal discharge for
Japanese-style splits
tend to be larger and blow out
through wall ducts.
Larger ducted splits can be up to
70kW+ (grey area)
PACKAGED ROOFTOPS
A single standard unit comprising all

the elements of cooling and air
distribution designed for external
mounting.Air is delivered to the
building directly through ducts.
Offered as off-the-shelf package, fully
integrated and cannot be split into
different elements and installed
separately.
Some units are capable of providing
heat from gas or elec. powered heat
gen, or reverse the refrig, cycle.
INDOOR PACKAGED
A catch-all category for a number of

other types of self-contained units.
These are single units comprising all
elements of cooling and air distribution
designed for internal mounting. Both
ducted and non ducted and air cooled
and water cooled products are included.
Can be referred to as indoor
packaged, cabinet heaters, packaged
terminal units (US), ceiling pack
units or consoles
Units available providing heating by
reverse cycle.
F-6
Appendix F
F-7
Appendix F
CLOSE CONTROL
A packaged air conditioning system,

primarily designed to meet process or
equipment needs, whilst at the same
time provide comfort for people
Normally applied with high heat
sensitive heat ratios and able to control
both temperature and humidity control.
typically a malfunctioning automatic
control systems will be fitted
Includes mini chillers - water chillers
designed for use with water cooled
mainframe computers (may be water or
air cooled
F-8

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BSRIA Market Reports On-line

India, Egypt, Saudi Arabia, Kuwait, UAE, Iran

ROOM AND PACKAGED AIR

No. of pages: i - vii of preamble

Room and Packaged Air Conditioning

Source: BSRIA/ACNielsen AMER

Most of the market is supplied by firms such as :

BSRIA Report 14937/8

Room and Packaged Air Conditioning

'Other large packaged' is a category of system that includes special one-off

Close control applications are systems designed to meet process or equipment

BSRIA Report 14937/8

Room and Packaged Air Conditioning

MARKET SIZE, STRUCTURE AND SEGMENTATION ..............................................3

SALES TRENDS AND FUTURE FORECAST .............................................................40

PRODUCERS, IMPORTERS AND EXPORTERS.......................................................45

PRICES, DISCOUNTS, MARGINS AND PROFITABILITY.......................................47

BSRIA Report 14937/8

Room and Packaged Air Conditioning

END USER SECTOR AND APPLICATIONS ..............................................................48

MAIN SPECIFIERS ........................................................................................................49

MARKET ENTRY ......................................................................................................50

Building costs and construction forecasts

BSRIA Report 14937/8

Room and Packaged Air Conditioning

List of Tables and Figures

Room and Packaged Air Conditioning

List of Tables and Figures

Table 2.44 Sales of rooftops by mode, volume, 1998 ...................................................... 23

Room and Packaged Air Conditioning

List of Tables and Figures

BSRIA Report 14937/8

Room and Packaged Air Conditioning

List of Tables and Figures

Packaged air conditioning, value and volume, 2000E........................................4

BSRIA Report 14937/8

Room and Packaged Air Conditioning

In terms of product groups, these are covered in two separate volumes, as

Central Plant Air Conditioning

Definitions of key product groups are available in Appendix E. Data in the

Room and Packaged Air Conditioning

BSRIA Report 14937/8

Room and Packaged Air Conditioning

MARKET SIZE, STRUCTURE AND SEGMENTATION

Source: BSRIA/ACNielsen AMER

Source: BSRIA/ACNielsen AMER

Room and Packaged Air Conditioning

Table 2.3 Packaged air conditioning market, 2000E

Source: BSRIA/ACNielsen AMER

Figure 2.1 Packaged air conditioning, value and volume, 2000E

Total: US$ 86.9 million

Total: 106,499 units

Source: BSRIA/ACNielsen AMER

fewer expatriates entered the country in the past few years

BSRIA Report 14937/8

Room and Packaged Air Conditioning

Due to expansion in residential and construction projects the value of the

Climate and population

A selection of recent major projects illustrate the types of requirements for

BSRIA Report 14937/8

Room and Packaged Air Conditioning

The construction of the Commercial Tower on Fahad Al-Salem Street.

Other potential areas for air conditioning sales include: