Adipec has booked a record number of participants for next month’s event in Abu Dhabi, which is expected to translate to record revenue from the exhibition for the city.
Last year’s Adipec, which has grown to become the world’s third-largest oil industry gathering, is estimated to have brought revenue of US$50 million for hotels, restaurants and retailers. There were also an estimated $5 billion in deals signed or agreed to during the four-day event, according to the results of a post-show survey conducted by the organiser, dmg events, a division of Britain’s Daily Mail Group & Trust.
Next month’s gathering is expected to top previous results substantially, with booked exhibition space up 30 per cent from last year, at 45,000 square metres, the number of exhibitors up by a quarter, at 1,600, and attendance forecast to be nearly a fifth higher at 60,000.
The event is hosted by the state oil company, Adnoc, and will feature a number of heads of national oil companies, including Kuwait Petroleum and Saudi Aramco, as well as top executives from international oil companies such as the BP chief executive, Bob Dudley, and from oil service companies and consulting firms.
Also for the first time, teams from Malaysia, Indonesia and Mexico will be present at the gathering.
Mexico, which passed laws in August clearing the way for foreign direct investment in its oil sector for the first time since nationalisation in 1938, is keen to court international investors and technical expertise as it seeks to attract up to $50bn to the sector over the next five years to explore and develop new resources.
While there are two bigger annual oil events – such as OTC in Houston in spring and the autumn gathering in Calgary, Canada – it is the seniority and diversity of the attendees that have made Adipec draw comparisons to the “Sun Valley” summit for the media world.
“It is the only oil conference where you can find top representatives from all the Arabian Gulf states, all the national oil companies, the international oil companies, the service companies and consultants, under one roof at the same time,” said Salman Abou Hamzeh, a senior project manager for dmg events.
Adipec has also proven to be a money-spinner for dmg, which is best known as the publisher of Britain’s Daily Mail newspaper. The event was started 30 years ago but has grown substantially since dmg acquired it from the Abu Dhabi government in 2006, turning it from a biennial show to an annual one last year.
The company does not disclose revenues or profits for a specific event.
However, in its latest financial results, for the half-year to end of March 2014, the Daily Mail Group reported that events was its fastest-growing division, with year-on-year underlying revenue growth of £66m (Dh391.3m), up 28 per cent from the previous year, and operating profit at £22m, up 21 per cent.
The company said Adipec, which had been taken annual the previous year, was one of the division’s three largest contributors and was the main driver of growth. Without Adipec, the half-year financial report said, underlying growth dropped to 18 per cent.
Next month’s event, therefore, is likely to help boost the division’s full-year results further.
The theme of this year’s conference is “Challenges and opportunities for the next 30 years”.
amcauley@thenational.ae
Follow The National's Business section on Twitter
