From desert state to global metropolis
United Arab Emirates
The HERZ Group is present wherever building technology must function reliably under demanding conditions. Where extreme climatic conditions, ambitious construction projects and the highest efficiency requirements come together, solutions with substance are needed. The United Arab Emirates is just such a market – dynamic, demanding and future-oriented. HERZ has been active here for more than two decades and has gradually established itself as a reliable partner.
From the "Trucial States" to the Federation
Before the United Arab Emirates was founded in 1971, the area consisted of several independent sheikhdoms along the so-called Trucial Coast on the Persian Gulf. In the 19th century, these emirates were referred to as the ‘Trucial States’ – derived from the protection and truce agreements (‘truces’) they concluded with Great Britain.
The background was pragmatic: the region lived from trade, fishing and pearl farming, but was repeatedly affected by conflicts and piracy. Great Britain wanted to secure its important maritime trade routes to India and offered protection. In return, the sheikhs undertook not to enter into foreign relations or cede territories without British consent. This agreement created stability – without direct colonial rule.
However, the collapse of the pearl trade around 1930 exacerbated the economic situation. It was only with the discovery of oil that the outlook changed fundamentally: in 1958, oil was found in economically relevant quantities for the first time in Abu Dhabi, and in 1962, the first oil export from Abu Dhabi took place. Today, the UAE is one of the world's leading oil and natural gas exporters. It has the sixth largest oil reserves in the world and was one of the five largest crude oil exporters in 2023. With production of over 3 to 4 million barrels per day, it is consistently among the top 10 producers worldwide. At the same time, it recognised early on that sustainable prosperity is only possible through diversification.
Sheikh Zayid bin Sultan Al Nahyan – former ruler of Abu Dhabi and first president of the United Arab Emirates – began using oil revenues to systematically build infrastructure and government structures as early as 1966. He is still regarded today as the ‘father of the nation’ and a visionary. In Dubai, the Al Maktoum ruling family has been consistently focusing on building efficient infrastructure, international connections and expanding trade, aviation and tourism since the 1970s. This has resulted in internationally renowned projects such as the Burj al Arab, the Burj Khalifa as the world's tallest building, the Palm Jumeirah island and, in 1985, the Emirates airline.
Current situation: Stability, growth and influx
The UAE is now considered a safe haven – both politically and economically. No income tax for private individuals, a moderate VAT rate of five per cent since 2018 and a corporation tax rate of nine per cent applicable since 2023 create favourable conditions. In many free trade zones, 100 per cent foreign ownership is also possible. These factors, combined with a high level of security in the country, are leading to a strong influx of people. At the same time, the property market is growing dynamically. Energy efficiency, intelligent building technology and optimised cooling concepts are key issues – and this is exactly where the connection to HERZ begins.
HERZ Middle East: Establishing a regional hub
HERZ has been operating in the United Arab Emirates through partners since 2004. With demand increasing, the next logical step followed in 2012: the establishment of HERZ Middle East FZE as a separate subsidiary with its own office and warehouse. What began with three employees is now a team of over 30 people, most of whom work in technical support.
From the UAE, HERZ now supplies more than 30 countries, including the Philippines, Indonesia, Australia, New Zealand, numerous African states and other GCC countries (Arab states on the Persian Gulf). The branch has developed into a central platform for the region. "The market here demands presence, reliability and technical understanding. Those who only deliver but do not provide support will not be successful in the long term," says Zoran Bankovic, Vice President at HERZ and Managing Director of HERZ Middle East since the very beginning.
Presence, training and market strength
"Technical support before, during and after the project, as well as a reliable reputation on the market, are crucial", says Bankovic. HERZ therefore places great emphasis on close cooperation with planners, consultants and installers. Regular training courses and seminars – both on-site and online – are part of everyday life. The focus is on technical topics, system understanding and product solutions. "Our strength lies not only in the product, but also in the knowledge behind it", says Bankovic, emphasising that "This is what makes the difference, especially in such a competitive market."
HERZ is also present at leading international trade fairs, including Big 5 Global in Dubai, where HERZ once again attracted a great deal of interest in 2025. These appearances strengthen the brand's visibility and direct exchange with decision-makers.
Reputation as a decisive factor
In the UAE, projects are largely awarded on the basis of trust. "The real breakthrough came with the Deira City Centre project in Dubai", recalls Zoran Bankovic. "There, we were able to demonstrate the capabilities of our solutions on a large scale for the first time – both technically and economically."
As part of the modernisation of the Deira City Centre shopping mall, one of the first in Dubai, the existing cooling system was converted from a static system to a dynamically controlled system. Among other things, HERZ supplied pipe regulating valves in combination with differential pressure controllers for perfect hydraulic balancing, as well as HERZCON, the compact direct connection for fan coils. The result: energy savings of over 30 percent per year – a strong signal to investors and operators.
This reference laid the foundation for numerous other projects and strengthened HERZ's reputation as a competent partner for efficient cooling solutions in the region.
References in High-Rise Construction
HERZ is currently involved in a wide range of landmark projects, such as One Za’abeel. This project is one of Dubai’s most architecturally ambitious developments, featuring the world’s longest inhabited cantilever. Large-scale control valves, HerzCON and pressure independent control valves are used in the primary and secondary cooling circuits. This is complemented by domestic water fittings, such as pressure reducers and check valves.
Currently under construction is the exclusive Sobha One waterfront development, comprising multiple interconnected towers with a central chilled-water supply. HERZ provided valves for hydraulic balancing, control and regulating valves, as well as shut-off and check valves throughout the chilled-water network. The goal was to ensure even distribution across all floors and efficient operation under partial-load conditions. “HERZ products provide stable pressure conditions and a clean commissioning process – crucial for high-rise buildings with complex vertical distribution”, says Zoran Bankovic.
Stargate UAE: Precision for high-performance data centres
One of the current key projects is the Stargate UAE Data Centre in Abu Dhabi. It is part of an international AI campus that is being implemented in close cooperation with leading technology companies such as G42, OpenAI, Oracle, NVIDIA, the SoftBank Group and Cisco. With a planned total output of up to five gigawatts, the site is one of the largest data centre projects in the world. The first expansion stage, with around 200 megawatts, is already underway.
HERZ is supplying a wide range of valves for cold water distribution for this project. Among other things, control and shut-off valves are being used, as well as solutions for stable pressure maintenance in the cooling circuits and balancing valves, 2-way-valves and 3-way-valves. The decisive factors were the product quality, the project-specific configuration and HERZ's proven experience in comparable data centre projects.
"Data centres have particularly high requirements in terms of hydraulics and pressure stability – every millisecond and every degree Celsius counts here", explains Zoran Bankovic.
Professional insulation for maximum system reliability
The climate in the United Arab Emirates poses particular challenges for products: they must be able to withstand high temperatures and high humidity over long periods of time. In addition to product quality, professional insulation also plays a key role here. HERZ covers this area with special product insulation. "Our highly sought-after all-rounder HerzCON is supplied with a vapour-diffusion-tight or even fire-resistant insulation shell to cope with the climatic conditions", explains Zoran Bankovic. In addition, the HERZ Middle East team regularly visits construction sites to ensure that the systems are installed and insulated correctly. "Professional insulation also ensures that the systems are durable and efficient", says Bankovic.
Cooling solutions continue to dominate the market, but heating solutions are also becoming increasingly important in the UAE. Surface heating systems are increasingly being used in prestigious buildings and mosques. "Most recently, we supplied stainless steel distributors for surface heating systems for projects in Abu Dhabi, among other things", reports Bankovic.
What HERZ Middle East expects in 2026
HERZ Middle East is now one of the HERZ Group's highest-grossing subsidiaries, generating millions in annual sales. "The UAE is a sought-after but also very fast-moving market", emphasises Zoran Bankovic. "Anyone who fails to deliver on time here not only risks losing the order, but can also be quickly affected by changes in the US dollar exchange rate."
In order to meet special challenges such as extended delivery times due to the Houthis' control of the Suez Canal, HERZ has expanded its local storage capacities. At the same time, solutions are being adapted to the market: compared to Europe, products are designed for high flow rates, precise cold water control and stable cooling circuits.
Around 100 projects are already in the pipeline for 2026. "We are expecting strong years in the UAE", says Bankovic, adding: "We are proud of what we have achieved together with our local team and grateful for our customers' trust in our HERZ solutions."
© 2026. HERZ
