Global exhibition organisers dmg events and Koelnmesse signed a Memorandum of Understanding (MoU) in May to collaborate on trade shows across the Middle East. Both companies say this rapidly growing market presents a unique opportunity for them and say their collaboration will focus on Sports, Build, and Leisure Facilities; Office Design, Build & Fit-out; Furniture and Fittings and Hardware & Tools. dmg events president Matt Denton tells EW how the agreement came about and what he hopes to achieve with it.
This agreement had been in the pipeline for a while, but moved to completion very quickly. We’re always happy to talk to other organisers about events and seek out opportunities for collaboration and this is what happened here. The Koelnmesse team had seen some of the exciting developments in the region and in doing their due diligence before entering, recognised the need for local knowledge and presence. We first met at an UFI event in Oman, and later Gerald Böse of Koelnmesse and my Group CEO Geoff Dickinson caught up at the UFI CEO Summit in Amsterdam. Next Denis Steker and I were dotting the I’s and crossing the T’s. We were all very much aligned on the requirements and, importantly, the events we are planning and the geographies all add to our existing portfolios, there is no internal competition or conflict. Our initial focus is on bringing three of their leading global brands to the region, bringing together their brands and influence with our regional expertise and infrastructure. It’s now over to the teams to make it all real.”
Does the agreement signify a move away from competition to ‘copetition’ in the trade fair world – at least in this region for you?
We have definitely embraced that of late, but I’d like to think it has always been our nature. We would rather work together than against when there is clear mutual benefit. I guess the dmg & KAOUN announcement last year, where we have partnered on food and hospitality shows globally with the DWTC, personifies our approach. Our Saudi business holds around 30 annual events, our offices and networks in country are fantastically positioned for the growth the country’s Vision 2030 is driving. However, we want to put on the best events possible, not just locally but internationally, and we recognise that to achieve that and truly deliver on the market potential, then working with and bringing international brands is key. By combining our infrastructure, experience and networks with the leverage of large global events, we can accelerate establishing these events and avoid unnecessary competition and duplication. The leverage of brands like KAOUN’s Gulfood and FSB, ORGATEC and Eisenwarenmesse from Koelnmesse, will rapidly establish the regional shows in the global calendar. The key is dmg’s portfolio and position in the region. Over the years we have emerged as a key regional player and divested events in other regions. Yes, we have our industry leading Energy and Construction portfolios, but on other topics we don’t tread on the toes of leading global events, making us a welcome partner with the right regional infrastructure and networks.
The Middle East is a big region, but which individual countries hold the most promise for your future investment and development of shows? How are trends moving?
In the Middle East we are firmly focused on the United Arab Emirates and Kingdom of Saudi Arabia (KSA). Saudi is of course capturing all the headlines and the growth in that market is phenomenal. That said, it is still in its infancy. We have been there for over a decade, but the post Covid years have driven the growth. It is still very much a local market, international, regional and local exhibitors addressing the domestic demand. That will change probably quite quickly. The UAE remains the regional hub for events and the growth here is strong as well. In a world where travel and sustainability are coming under more scrutiny, shows like our Big 5 Global construction event in Dubai will attract buyers from all over the region, for that one-stop-shop. Our investment and development here, akin to the UAE itself, is to expand that reach and draw from further afield, into Africa and ASEAN. Bahrain, Qatar are also on the radar, with fantastic venues and facilities, but for now we focus on our KSA and UAE initiatives. When we look further afield in the region to Iraq, Kuwait, Jordan etc, there are some exciting opportunities, but they aren’t for us at the moment.
What are the challenges for dmg events in this region?
The major challenge is talent and recruitment. In a ‘hot’ region, excuse the pun, we are staffing up to handle all the launches. There is a huge demand for additional talent and often there just isn’t enough in the region. I’m sure we are not alone in bringing in people from different industries or relocating people for abroad. We fully support local employment regulations such as Saudisation. In Saudi we have been fortunate to find some amazing Saudi talent and we are working closely with the relevant authorities and universities to nurture and develop a pool of future exhibitionists, into what is a new and developing industry and career path.
Tell us about the current pace of the market. Which areas and show portfolios are performing the best for you and where are the challenges?
The pace of growth is amazing, pretty much across the board. Looking at the 2019 comparison we all like to use post-Covid, there is no comparison. The Saudi business has gone from five shows to around 30. The UAE business has more than bounced back and in addition to growing the existing events, for the first time in a few years we are launching into new topics and tenancies. There are of course challenges, despite fantastic teams and topics, the economic woes in Egypt are taking their toll. That said, our recent EGYPES show was once again a blockbuster for Chris Hudson and his Energy team.
What else is on the dmg events agenda this? What are you prioritising and where do you see promise?
My side of the business is business as usual, being agile, maximising opportunities, seeking partnerships, building relationships and launching. The KAOUN Int’l and Koelnmesse partnerships are just the tip of the iceberg and we are discussing many other opportunities as we explore that playbook and our ability to support other complementary global brands’ entry into the Middle East market. One of the other new and exciting developments falls to Chris and his side of the business. Fresh from the success of delivering the ‘Blue Zone’ at COP28 and organising India Energy Week, he is championing a drive into the PCO business, so watch this space. The major trend we are seeing, collaboration for globalisation. Organising shows isn’t a cut and paste and with the recognition that simple geo-cloning doesn’t work and that shows need adapting, comes the realisation that markets work in different ways and localisation needs local knowledge skills and networks. The sales may be international, but the activation is local. My advice to organisers looking for new markets is exactly that, apply local knowledge, you’ll find that may make the locals more accepting too.
This article is taken from EW Issue 3, to get the digital magazine bi-monthly to your inbox, subscribe here: https://www.exhibitionworld.co.uk/subscribe
