This opportunity entails developing the value chain for the production of liner hangers to serve the KSA and GCC oil and gas industry. The overall demand for liner hangers in Saudi Arabia has been growing, estimated at ~1,200 units and valued at USD 95 million in 2016. Driven by strong oil and gas production activity, KSA demand is forecasted to increase at an annual growth rate of ~5% to reach 1,912 units by 2022. In 2016, demand for liner hangers was ~57% for the hydraulic type and ~25% for mechanical type and the remaining for other types. The split is expected to remain relatively the same till 2022. Currently, KSA demand for liner hangers is addressed fully through imports, presenting a great opportunity for investors to localize production. Beyond the KSA market, investors in Saudi have the opportunity to tap into the large regional market in the GCC which is expected to witness strong growth fueled by oil and gas production, expected to increase from ~1,600 units valued at USD 100 million in 2017 to ~2,000 units  by 2022. In addition to an increasing market demand, Saudi has an attractive cost base including low labor, land, utilities and logistics cost. Also, KSA plans to localize Elastomers, previously a barrier for liner hangers localization. The focus of this opportunity is on production and testing & assembly of line hangers. These opportunities entail: Production: Establish a fabrication shop to manufacture liner hanger system components including pack-off bushing; Establish a lathe/CNC shop to fabricate slips, cones and other components; and leverage local facilities to outsource surface treatment and finishing services Testing & assembly: prepare and test equipment prior to installation on site; provide liner hangers redressing services However, there are additional opportunities for localization across the liner hangers manufacturing value chain. Opportunities across the value chain include: Design: establish an office to optimize designs for Line Hangers to fit bottom hole requirements in KSA Input materials: manufacture elastomer based rubber for oil and gas applications Input materials: partner with local OCTG suppliers to upgrade casing manufacturing capabilities used in fabricating the body Lifecycle management: provide Liner hander maintenance and repair services including spare parts / مالك الفرصة: منصة استثمر بالسعودية