Over the past few months, the oil and gas market in the region has sparked a renewed interest in French companies.
As many as 30 of France’s finest service providers attended ADIPEC in November, many of which had already established annual partnerships with local firms, or were looking to set ones up in the near future.
But France’s foray into the region’s market started earlier on, in September, with the first ever UAE-France Oil and Gas Symposium.
The event was attended by key industry players and political leaders, who used the opportunity to call for “more bilateral business cooperation between the two countries”. All these efforts by the EU influential player to reassert itself in the region come as no surprise and if anything have been long overdue. For the past few years, France has been losing out to Asian markets in the UAE.
Claude Valle, president of the French Business Council, revealed in an interview for Capital Business, that France’s share in the UAE market, small as it already was, dropped even further to just 3% in 2011. Amid falling oil prices and slow global economic growth, it is very unlikely the numbers will go up any time soon.
But don’t get me wrong. Not all is doom and gloom for the UAE-France connections. Beginning last month a new Air Liquide manufacturing centre opened in the northern emirate of Ras Al Khaimah (RAK).
With the support of RAK’s ruler, the French specialist in industrial gases launched a new centre to service oil and gas companies among other industries in the UAE and the Gulf – a sign of fresh investment and reinstated ties.
In fact, it’s the Emirates’ strategic geographical position, combined with the business opportunities its diversified economy has to offer, that has long powered France’s drive to enter the UAE’s oil and gas scene. To do so it will simply need to play to its strength.
I’m talking about selling its cutting edge technology and excellent oilfield services, which may not be very established in the market here, but sell like hot cakes in countries like Canada and the United States.
Now is the time to add the UAE to this list, as investment in technology in the region is at an all-time high.
Quality health and safety products, something French companies pride themselves on, will also be in high demand as more robust regulations are being enforced.
However, the main challenge will be to quickly capture opportunities and be able to respond to all customers’ needs, as Air Liquide’s VP said.
To be able to overcome this challenge French companies will simply have to adapt to the region’s needs and start thinking more local.
About the author:
Slavka Atanasova is a reporter for Oil & Gas Middle East. She also covers the industry for arabianoilandgas.com
