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Dubai Investments raises Dh700m to expand Emirates Float Glass

Third-quarter profit likely to be Dh30m; investment in India planned It will be used for acquisitions in the region

Gulf News

Dubai: Dubai Investments, the Dubai Financial Market listed holding company that owns more than 40 companies with interests in manufacturing, real estate and financial services, said yesterday that it has completed raising Dh700 million from banks to fund the expansion of Emirates Float Glass.

"We have secured Dh700 million of the planned Dh1.2 billion loan. The loan is for the Emirates Float Glass project in Abu Dhabi and the remaining amount will be raised from banks when the project requires funds," Khalid Bin Kalban, managing director and chief executive officer of Dubai Investments, told reporters yesterday.

Kalban said the year has been difficult for the company with its financial investments taking a big hit and many of its property portfolios facing revaluations, resulting in reduced profits. The company said it was also forced to take larger provisions this year as a result of non-payment by clients.

The company expects its third quarter profit to be near Dh30 million compared to Dh213.61 million in the same period last year. Profit for first nine months ending September 30 is expected to be Dh270 million.

"The third quarter was worse than the first and second quarters of this year. Provisions have impacted our performance in the quarter. But we expect the fourth quarter and next year to be better," said Kalban.

Dubai Investments sees strong potential for expansion of its manufacturing companies across some of the priority markets outside the Gulf and wider Middle East and North Africa region.

Big scope

"There is big scope for manufacturing in countries like India. In India we are discussing two projects. These projects could be in float glass and steel fabrication," said Kalban. The company is exploring the possibility of both greenfield ventures and acquisitions in India.

In the post-Arab Spring era, Dubai Investments plans to revive some of its plans in those countries impacted by political changes. In Libya the company was in discussions to set up a 40 square kilometre industrial park prior to the political unrest. The company said yesterday that it plans to revive the project when stability returns .

Kalban said Dubai Investments and its portfolio companies are adequately liquid and funding is not a hurdle for its expansion plans.

"As a matter of corporate policy we keep one third of our paid-up capital always liquid. We have not found it difficult to raise funds from banks when we have a viable project," said Kalban. Dubai Investments has a paid-up capital of Dh3.5 billion.

Ambitious move: Masharie’s capital will be raised to Dh1b

Dubai Masharie Company LLC, one of Dubai Investments portfolio companies that owns a number of manufacturing companies, has plans to increase its capital from Dh600 million to Dh1 billion this year. Dubai Investments owns 65 per cent of Masharie's capital. The additional Dh400 million is expected to be raised from Masharie's existing shareholders.

The additional capital will be used for new acquisitions in the UAE, Qatar and Saudi Arabia.

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