The offshore market in the Middle East region continues to show an upward progression which makes it the strongest marketplace from a demand perspective that is attributed to the significant plans of the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) according to Gregory Brown, Associate Director for Offshore Maritime Strategies International, a maritime forecasting and strategic advisory firm.
Despite the market being challenged, he expressed his confidence in the upturn. Aligned with the coming Seatrade Offshore Marine and Workboats 2019, the leading conference and trade show for the global Offshore Marine and Workboat industries that will be conducted from September 23 to September 24, 2019, at the Madinat Jumeirah in Dubai.
The Offshore Marine and Workboats 2019 will be served as a strategic platform for industry experts and professionals to discuss and cover the key issues and challenges of the industry.
According to Brown, the offshore vessel market is in the early stages of recovery due to the presence of increased activity and the growing demand for high specification vessels. The market downturn experienced in the last five years is now witnessing upturn marked by the entry of new contract awards and increased utilization and pricing rates.
Brown shares, “We are currently on the way to recovering from this five-year downturn, the strongest one felt since the mid-80s. Despite being seen as a slow recovery, we can see that there are robust pockets of activity--opportunities that can help us drive in more growth to the industry.”
Industry experts have said that the recovery will be seen in a number of phases. There will be an increase in the number of collaboration and consolidation activities from market players, which will leave a positive impact on the offshore market.
“The biggest challenge for the offshore market will be finding its role within the global energy mix. In fact, we have yet to see final investment decisions because the market went through a structural cost issue. To address this, we need to effect real structural change and real structural rethinking of how these reserves are developed because they always have to look at them in the context of what the alternative investment is. We won't get that big inflection overnight as fellow industry professionals have said that we will go through a number of phases before we experience a full recovery,” Brown concluded.
As part of UAE Maritime Week held under the patronage of His Highness Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince of Dubai, UAE, Seatrade Offshore Marine and Workboats 2019 is expected to connect the UAE with the international offshore marine vessel and workboat industries.
The exceptional two-day event will see each and every corner of the industry from offshore marine vessels to ports and offshore marine suppliers to discuss timely industry concerns, build new relationships and share industry knowledge.