The Middle Eastern air conditioner market was 5.7 million units in 2015, a 4.4% increase from the previous year.
Saudi Arabia and the United Arab Emirates (UAE) are major markets in the Middle East. And market conditions in Iran, Qatar, Oman, and Kuwait are maturing. Dropping oil prices impeded liquidity of capital and postponement or suspension of construction projects are increasing, which may cast a shadow on the region’s air conditioner markets in the near future.
Oil producing countries in the Persian Gulf canceled or cut fuel subsidies to their citizens in order to ease their financial deterioration. In August 2015, the UAE canceled a subsidy on gasoline and coal oil. Saudi Arabia did the same in December 2015. Qatar and Oman also raised gasoline price considerably in January 2016. At the same time, oil producing countries in the Persian Gulf plan to impose value-added taxes on citizens such as an excise tax, which will likely reduce consumption.