Welsh Firms Target UAE Energy Market for Significant Growth at Adipec

A delegation of over 16 Welsh companies is actively seeking to expand their business within the United Arab Emirates' energy sector, with some already deriving more than half of their revenue from the Middle East. These companies, representing diverse fields including electric energy, maritime vessels, and industrial equipment, are attending the Adipec exhibition in Abu Dhabi.

Dylan Jones, managing director of Holyhead Towing, highlighted the region's importance, stating that it now accounts for 70 to 75 percent of the company's revenue. "We have eight vessels working here in support of the energy sector, predominantly oil and gas," Jones explained. "Also, infrastructure-type projects like land reclamation are quite big around Dubai and Abu Dhabi." He sees Adipec as a prime opportunity to connect with existing and potential clients in a centralized location.

The Welsh government is providing support to these companies through an export initiative aimed at facilitating customer engagement and fostering international business development. Another participating Welsh firm, Tomoe Valve, exports approximately half of its UK factory's output to the Middle East, with the UAE being its largest regional market. Repeat visits to Abu Dhabi have been instrumental in building a market for their Welsh-made products.

"The Middle East is obviously a large attraction for us," commented Clive Johns, Tomoe Valve's business development director. "About 50 per cent of our capacity is exported to the Middle East from the UK factory." Tomoe Valve manufactures butterfly valves essential for controlling liquid and gas flow in pipes, a product originally designed for the oil and gas industry, making the Middle East a natural market. The UAE currently represents the majority of Tomoe Valve's business in the region.

Johns also noted the consistent support from the Welsh government and the British embassy in establishing contacts within the Emirates. He expressed a desire to expand operations into Oman, Kuwait, and Iraq, emphasizing that "Adipec is the place to do business in the Middle East, not just UAE." While the company began the year with a robust order book, regional uncertainty has led to delays in final investment approvals for some projects, though Johns confirmed that "Stuff is still moving."

In response to the UAE's increasing focus on localization, Tomoe Valve is exploring partnerships with domestic firms for assembly, testing, and other operations, as establishing its own factory would be financially prohibitive. "However, he added they 'definitely want to work with local Emirati companies'," Johns stated.

For Clenergy EV, chief executive William David sees significant opportunities in the region's growth for charging infrastructure. "For us, the target market is any building that needs electric-vehicle charging infrastructure," he said. The company's primary objective at Adipec is to secure partners who understand local customer needs and can effectively represent Clenergy. David attributed the strength of Wales's energy businesses to its industrial heritage, stating, "We were part of the Industrial Revolution. We had the coal mines transitioning to renewable power in Wales." Clenergy EV aims to establish its presence in the UAE's expanding transport and property sectors.