This opportunity entails developing the value chain for the production of DV tools to serve the KSA and GCC oil and gas industry.
The overall demand for DV tools in Saudi Arabia has been growing, estimated to be 1,200 units valued at USD 64 million in 2016. Driven by strong oil and gas production outlook, demand is forecasted to increase at an annual growth rate of 2.5% to reach ~1,400 units by 2022. Currently, KSA demand for DV tools is addressed fully through imports, presenting a great opportunity for investors to localize production.
Beyond the KSA market, investors in Saudi have the opportunity to tap into the large regional market in the GCC which is expected to witness strong growth fueled by oil and gas production, expected to increase from 1,300 units valued at USD 133 million in 2017 to 1,400 units by 2022.
In addition to an increasing market demand, Saudi has an attractive cost base including low labor, land, utilities and logistics cost.
The focus of this opportunity is on manufacturing body, elastomer-based seals and components of DV tools in Saudi Arabia. However, additional opportunities with high potential for localization exist across the value chain of DV tools manufacturing. Opportunities across the value chain include:
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