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Success Stories Sucess Stories
EIC Survive& &Thrive Thrive IX EIC Survive 2025
2025 JulyJuly 2025
Story type #scale up (main category)
STATS Group (UAE) Beyond Borders: STATS Group’s Localisation Strategy Pays Off in the Middle East Mark Gault
By implementing a comprehensive localisation strategy across the Middle East, STATS Group has achieved remarkable 400% revenue growth over five years in the region, expanding to over US$20m in annual revenue in 2024. The pipeline isolation specialist has established local entities in key markets, like the Middle East, with dedicated facilities, increased regional headcount from 51 to 159 staff, and successfully diversified from UAE-focused operations to build substantial presence in Saudi Arabia and Oman. As the first Saudi-dedicated hot tap and double-block and bleed isolation specialist, STATS now holds the region’s most extensive inventory of large-diameter pipeline isolation equipment. The challenge - As a market leader in pressurised pipeline isolation services for the global energy industry, STATS Group recognised that its Abu Dhabi regional headquarters alone wouldn’t drive sufficient growth in the competitive Middle East market. Although the company had been operating successfully in the region since 2012, client feedback consistently indicated that while STATS’ technology and expertise were highly valued, local presence in key markets – particularly Saudi Arabia as the region’s largest market – was essential to becoming a preferred supplier. The company faced multiple challenges in its expansion efforts, including project delays, restrictive operational constraints, slow payment cycles from clients and intense competition from established players with century-long market presence. Additionally, STATS needed substantial capital investment for regional assets, comprehensive client education about its patented technologies, recruitment and training of competent personnel across different countries, and meeting stringent nationalisation requirements such as Emiratisation, Omanisation and Saudisation. These challenges collectively strained cashflow and tested the business model’s resilience.
▸ Gross profit margins have grown from 16% in 2020 to 36% in 2024, while revenue has increased 400% over the same period. ▸ Number of employees in the region has increased from 51 to 159. .
Key findings
Vice President, Middle East How is STATS Group (UAE) thriving?
Benefits
The solution - STATS Group’s transformation began with a clear message from clients across the Middle East – they appreciated the company’s best-in-class pipeline isolation technology but wanted it delivered locally. Unlike competitors who were consolidating operations to fewer bases with remote support, STATS recognised that in-country value (ICV) was a key driver for clients in the region, making a comprehensive localisation strategy essential. Taking advantage of a timely change in Saudi law that allowed 100% foreign ownership, STATS established a Saudi entity with a US$3m+ investment in a new 2,500-squaremetre operating base in Dammam. This strategic move, along with gaining Approved Vendor status from Saudi Aramco, positioned the company for unprecedented growth in the region’s largest market. The facility includes offices, crane facilities, testing bays and equipment storage built to global STATS ISO standards, housing the company’s patented Tecno Plug® and BISEP® double block isolation tools in sizes up to 56”, alongside hot tapping machines up to 60”. The localisation strategy extended beyond Saudi Arabia, with STATS establishing a comprehensive Middle East footprint including facilities in Abu Dhabi (5,500 square metres), Doha (7,000 square metres), and Muscat (400 square metres). This network has transformed the company’s regional presence and has shifted revenue distribution dramatically, with Saudi Arabia now representing 40% of regional revenue, Oman 30%, UAE 20%, and Kuwait 8% – a significant change from the UAE-dominated business of five years ago. Critical to this success has been STATS’ commitment to nationalisation. The company has achieved impressive employment rates of local talent, including 10% Emiratisation in UAE, 50% Saudi nationalisation and 80% Omanisation. This diverse workforce has proven invaluable in navigating local bureaucracy, overcoming language barriers and understanding cultural
For young people ▸ Have an inquisitive mind, communicate in a clear manner and understand how to add value to a business over the long term. For industry ▸ Think long term and commit to the process, have a support system in place, commit to resources and support in region, and map out a clear plan that is achievable but still a stretch target.
STATS Group (UAE) at a glance: Key products and services: specialist tools and technology services. Main industries served: ▸ Oil and gas – 100% Headquarters: Aberdeen, UK Year established: 2012 (UAE) Number of employees: 159 (Middle East, excluding Qatar) Revenue: £15m (Middle East, excluding Qatar) Revenue from exports: 5%
nuances to drive business growth. The company has also invested in locally manufactured equipment, thereby reducing reliance on shipments from other regions and improving operational efficiency. At the same time, it has implemented comprehensive technical training programmes for the local workforce to build competence and reduce dependence on resources from headquarters. The financials back up the decision taken by STATS. Gross profit margins have grown from 16% in 2020 to 36% in 2024, while revenue had jumped by 400% over the same period. Meanwhile, the tripling of regional headcount from 51 to 159 employees in five years further demonstrates the scale of expansion.