Dmg Buys Abu Dhabi Oil Show

By Rachelle Crum -- Tradeshow Week, 6/26/2006

Dmg world media has purchased the biennial Abu Dhabi Intl. Petroleum Exhibition and Conference from Abu Dhabi Natl. Exhibitions for approximately $9.8 million.

With more than 1,200 companies represented, the event is one of the largest oil and gas exhibitions in the world. The 12th edition of the show will take place Nov. 5–8 at the Abu Dhabi Intl. Exhibition Centre in Abu Dhabi, United Arab Emirates.

Dmg Deputy CEO Mark Alcock said the show will help the Larkspur, Calif.-based firm extend the global reach of its oil and gas portfolio.

"We plan to capitalize on the obvious synergy between ADIPEC and our existing events — Gastech, the Global Petroleum Show and GO-Expo — to better serve the oil and gas industry through a global exhibition and conference program," he said. "We have also set our sights on building on the solid foundation of ADIPEC and creating the world's largest oil and gas event in Abu Dhabi."

Sheikh Sultan Bin Tahnoon Al Nahyan, member of the Abu Dhabi Executive Council and Abu Dhabi Natl. Exhibitions chairman, said, "We believe that this new business relationship with dmg world media reflects the strong position which Abu Dhabi holds as a modern, professional hub for international exhibitions and events."

He added, "We are certain that dmg world media's involvement will contribute to the rapid development of ADIPEC and will enhance the reputation of the exhibition and event industry in the region."

Meanwhile, Abu Dhabi Natl. Exhibitions is busy expanding the convention center by about 614,000 square feet of exhibit space. The expansion is expected to be completed in time for ADIPEC 2008. The venue currently offers about 484,000 sq. ft. of exhibit space.

Alcock said dmg plans to increase the size of ADIPEC by 2008 to entirely fill the new center and then create another gas event in Abu Dhabi in 2009, "as we believe that Abu Dhabi is unquestionably the leading location for this event."

Ian Stokes, executive vice president of dmg's Business Media Intl. group (which manages the firm's oil and gas portfolio), said dmg plans to grow ADIPEC "by tapping into our client base and our well-established representative circle to bring more exhibitors to the show."

Dmg is already a prominent show organizer in the Middle East. In Dubai, another UAE city, the firm produces Big 5 and Index, some of the largest in the region. According to the firm, it is actively increasing its range of shows and presence in the Middle East exhibition industry.

Before the June 13 ADIPEC announcement, dmg already had plans to hold Gastech (which focuses only on gas while ADIPEC covers oil and gas) in Abu Dhabi Dec. 4–7. The annual show rotates between gas-exporting and gas-importing countries. It took place in Bilbao, Spain, in 2005.

ADIPEC in 2004 featured 1,225 companies from 53 countries. The show is supported by several industry groups, including the Abu Dhabi Natl. Oil Co. and Society of Petroleum Engineers.

Dmg paid ADNE an initial payment of $4.9 million. It will pay the balance in December based on the performance of ADIPEC.

Dmg in May reduced its North American consumer home show portfolio by nearly a third, from 53 to 38 shows. The firm said it would divide nine shows into two parcels and make them available for sale, and cancel six shows, including a show scheduled for launch. The company is closing four satellite offices and laying off 30 of its 120-person home show staff.

In 2005, dmg acquired the St. Petersburg Suncoast Home & Garden Show, the St. Petersburg Suncoast Home & Remodeling Show and the Tampa/St. Petersburg Home & Patio Show from Florida State Trade Shows; the biennial Bathrooms & Kitchens Expo from Quantum Business Media; the ad:tech series of conferences and exhibitions from JD Events; Expressions of Culture, producer of SOFA Chicago and SOFA New York; and iMedia Communications.

Also last year, dmg sold the California Market Center showroom facility in downtown Los Angeles to Jamison Properties. This year, dmg sold two tradeshows for the Canadian trucking industry, Expo Cam and Cam-Expo, to Newcom Business Media.

Dmg employs about 700 people and operates more than 30 offices in the United States, Canada, the United Kingdom, France, the United Arab Emirates, China, Australia and New Zealand. The company is a subsidiary of the Daily Mail and General Trust, headquartered in London.