Daikin MEA Vice President - Sales Tuna Gulenc in an interview discusses the reasons and objectives behind the company's relocation of its regional HQ to Dubai, UAE. Q – The relocation of the regional HQ to Dubai, UAE is just one step in a long-term vision for Daikin to maintain and enhance a strong market presence in the region. Could you share the driving force behind the decision and what it means for the organization's operations in the Middle East and KSA in particular? A – Daikin Middle East & Africa has now fully developed its operations in the region, with its operations ranging from manufacturing, service provision to aftermarket support. The move demonstrates our commitment to maintain market leadership wherever we operate while also consolidating our presence in the MEA region. We are still on the way and at the very beginning, yet we are confident in achieving our vision to build a company that will last 100 years and more. We are a manufacturing company operating across a highly competitive and fast changing marketplace, which is why we think that the only way to survive and to win is to strive every day with strong determination and to be one percent better as compared to our version of the day before and continuously staying a half step ahead of the competition. What keeps us focused, committed and motivated every day goes way beyond the numbers, revenues, profits or market leadership but rather the idea that we are building an institution – a company that will last one hundred years and more. We are building an organization that will serve our customers better every day and in every way by training and employing highly qualified and skilled staff. We envision an institution that will further contribute to our society, environment and our planet. Q – There are several of the latest technological innovations that have been incorporated into the new office in the UAE. Could you provide some insights into their capabilities and how they will accommodate expansion and new operations in KSA? A – The new office AC design has been made to include the latest technological solutions of Daikin across the wide product range sold in the region. The move is aimed at making the facility a live showcase where customers and clients can feel the experience first hand--seeing the benefits and advantages to be gained from using such systems in their applications. The same solutions are promoted in the Kingdom accordingly. Q – What are some of the advantages that clients in the KSA will benefit from in the years ahead as Daikin pursues expansion plans throughout the Middle East? A – Daikin Saudi was established in 2013 as one of the key strategic expansion plans of Daikin MEA in the region, which reflects our understanding of the importance and potential of the Saudi market. The new facility, academy, AHU factory and future Experience Center have been created to serve as strategic business support for KSA to help us in further promoting and increasing our reach in the market. Clients are welcome to visit, explore and experience our facilities in the Kingdom. Q – What opportunities are you seeing in KSA? A – As part of Vision 2030, time and business are changing in Saudi Arabia, where industry experts are forecasting a significant shift from oil production source to investment in other businesses and starting in generating revenue from other sectors and maintaining stability in terms of high demand and speed of executing projects according to certain government strategies, which has kept the major drive for overall Saudi business including the private sector. Q – What growth segments within KSA have been identified by Daikin and how do you aim to address the demand within these emerging sectors? Since we first established our presence in Saudi Arabia in 2013, we found that there is remarkable growth across some of the Kingdom's key sectors, like: 1 - Healthcare Sector The Saudi Government has remained true to their expansion plans, especially in the remote areas and building small/medium hospitals. Meanwhile, the private sector has started to place large investments in the construction of hospitals, clinics and medical centers. 2 - Housing Sector The ‘Sakani' initiative represents the new vision and program initiated by the Ministry of Housing. In line with this, private developers have now started business partnerships and have begun building thousands of villas and flats for local people sponsored by banks with very low interest rates. 3 - Entertainment & Hospitality Sector To date, there are now new cities, villages and construction projects underway to establish the future entertainment scene in Saudi under the direct supervision of the government. Q – Daikin has always been the regional market leader with regards to introducing climate friendly refrigerants. How do you plan to maintain this position? Are there any recycling schemes for relevant products or programs aimed at educating stakeholders on the benefits of switching – especially considering the HFC phase-down date for countries under Article 5 Group 2? A – Daikin has a long history of global innovation leadership and is committed in the move to reduce the environmental impact of cooling, heating and refrigeration systems. It also has the unique position and expertise that comes from both manufacturing equipment and refrigerants. We are committed to bring to this region such innovations. The successful launch of the first inverter air conditioner using the low GWP R-32 refrigerant was a step in this direction. The countries that ratified the Kigali amendment to reduce the global warming impact of HFC refrigerants are now working to replace refrigerants commonly used today with those having a lower environmental impact. To support this transition, Daikin has recently announced providing free access to its patents covering HVAC equipment using the low GWP R-32 refrigerant. On a regional level, we have been supporting the UN program to help regional manufacturers in their evaluation of low GWP alternative refrigerants suitable for high ambient operations. — SG