Continued investment in new oil and gas as well as power generation projects is accelerating the need for nondestructive testing (NDT) inspection services in the Middle East and North Africa, according to a recent report.

Despite pressure on global oil prices and fears of a slowdown, the Middle Eastern oil and gas industry is expected to remain robust, offering immense growth opportunities for the NDT inspection services market, said the new analysis from Frost & Sullivan.

The ‘Beyond BRIC-Strategic Analysis of the Middle East and North African NDT Inspection Services Market,’ found that the market earned revenues of $796.4 million this year and estimated this to reach $1.3 billion in 2019.

Saudi Arabia will be the biggest market and grow at a compound annual growth rate of 11.6 per cent over the next five years, it said.

The Brent crude oil price, against which the Middle East and North African countries benchmark their oil industry, has remained high since 2011. As a result, oil and gas companies have earned significant revenue and duly invested back in infrastructure development.

Nikhil Jain, Frost & Sullivan measurement and instrumentation senior research analyst, said: “A number of new construction projects were announced between 2012 and 2014, benefitting the NDT inspection services market since an average of one percent of the cost in any new construction project can be attributed to NDT inspection.

"In addition, the growing focus on safety in the oil and gas industry is driving the demand for NDT inspection services in Middle East and North Africa."

Educating customers on the importance of quality over price will be vital to succeed in this competitive market. Participants must also explore the possibility of providing advanced NDT services to offset low profit margins, said the report.

"Competition in the advanced NDT services segment is far lower than for conventional services. Hence, service providers offering sophisticated solutions can charge a premium and boost revenues in the Middle East and North African market,” said Jain. - TradeArabia News Service