DNV’s continued focus on customer relations, quality and an ability to provide innovative services are key components in a strategy that is helping DNV expand further in the Middle East market – despite the economic downturn.
With the strong demand for risk management services in the region’s maritime, energy and industrial sectors, DNV in the Middle East is looking to expand its business. Revenues last year totalled US$ 49million, up 58% on the previous year. Its management team is budgeting for a revenue increase in 2010.
DNV’s area chair and maritime manager Peter Hamer says 2009 can be characterised has “a year of financial and business volatility” and this has led to an increasing complex risk environment for both DNV and its customers.
“The need to manage technical, societal and business risks is more urgent than ever,” says Mr Hamer. “Our results show continued growth, but we will not rest on our laurels. We will continue our focus on customer relations, quality and the ability to provide innovative services to help position us for the future.”
Although the Middle East has not escaped the global downturn, Mr Hamer said it is better equipped than many regions to steer the most effective course towards renewed growth.
“Strong opportunities remain in several areas relevant to DNV business, including shipping and the energy sector, and I remain confident that the Mideast governments have the plans and resources in place to sustain growth,” said Mr Hamer.
Growth engine
He continued, “The region is a growth engine for DNV and we believe that the potential for further growth and development remains considerable,”
Commenting on DNV’s core services, Mr Hamer said its maritime, energy and business assurance activities are holding up well in the tough operating environment.
“Work in the shipping sector is there, if not in the quantities seen last year. There is a strong sector split and one between the high end and low end projects too and we have been seeing a lot of opportunities emerge in the last two or three months.”
Contracts in the pipeline for offshore and government-backed projects are encouraging signs, though the sector split extends to regions with Dubai and Qatar at very different stages of the growth cycle. “Abu Dhabi in particular represents great growth potential. It is growing so fast and if you look at all the work and development that is going on there, it is phenomenal,” says Mr Hammer.
DNV’s manager for its energy arm, Jeffrey Lim, is also upbeat on the Middle East due in the main to the number and size of oil and gas developments, plus increasing investment in renewable energies.
Not all gloom and doom
“The global economic downturn has hit industries hard and companies in many sectors have been faced to put their expansion plans on hold. But it’s not all gloom and doom,” says Mr Lim. “The turmoil may continue to affect the pace of growth, but not the ultimate need for more raw, refined and generated energy,” he points out.
Mr Lim said the Middle East, with its reserves and strategic position in the markets, is expected to maintain and increase its oil and gas production and exports. “We believe the demand for DNV’s energy-related risk management services should consistently increase going into the future. Also, the renewed focus on life-extension of assets should bring new business areas for DNV to engage in,” said an optimistic Mr Lim.
Accredited management system certification is another important business income for DNV, positioning as a leading certification bodies in the Middle East. Certification in the fields of quality, environment, safety, IT security, food safety, business continuity and health care is building the DNV brand among more than 2000 customers in the region.
Supporting Masdar
DNV is the market leader in the validation and verification of CO2 emissions as part of the quota trading mechanisms under the Kyoto Protocol and other schemes, with a 48% share of the CDM project market worldwide. It has assisted the Masdar project with CDM and health and safety assessments and sees a large potential in the environmentally friendly Masdar initiatives.
“At DNV, we recognise that risk management is becoming increasingly important for companies across all industries, which is why we remain committed to developing our core competencies to identify, assess and advise on how best to manage technical and business risks,” says Torger Baardseth, manager for DNV’s business assurance activities in the Middle East.
“By providing business with tools to manage risk, we strive to help our customers maintain a safe and sustainable business performance and, in the process, go some way to realising our purpose to safeguard life, property and the environment in the Middle East,” concluded Mr Baardseth.
DNV currently has 232 employees in the Middle East, spread over a network of 11 offices in eight countries, and supplies a full range of technical and advisory services in multiple fields. It set up its first office in the United Arab Emirates 32 years ago.