Abu Dhabi: Senaat, one of the UAE’s largest industrial holding companies, said on Sunday it is planning to invest Dh5 billion in further expanding its portfolio of industrial projects over the next two years.
Over the last five years, Senaat invested over Dh16 billion in developing the metals sector, Husain Jasim Al Nowais, Senaat’s Chairman, said at the Global Financial Markets Forum in Abu Dhabi on Sunday.
He said the UAE has about 6,000 industrial establishments with an investment of Dh150 billion contributing to about 15 per cent of the country’s total GDP (gross domestic product).
“I am confident about the future of our country. I hope you will be inspired to contribute to the development and diversification of our economy,” he said.
Senaat is fully owned by Abu Dhabi Government and is a key contributor to Abu Dhabi’s Economic Vision 2030 which aims to diversify the emirate’s economy away from its reliance on the hydrocarbon sector, by developing a strong industrial capability.
The company manages more than $6.9 billion (Dh26.6 billion) of industrial assets and employs more than 15,000 people. Senaat has invested over $4.7 billion (Dh17.2 billion) in the non-oil sector since 2004, and it owns companies like Emirates Steel, National Petroleum Construction Company, Agthia, Ducab etc.
Al Nowais said the company’s commitment to the industrial sector is strong. “Our industrial journey has clearly been paved by successes, and sound collaboration with the financial community. But how do we take what is exceptional today and make it the best choice of tomorrow? I believe we need further support from the financial community,” he said.
“The industrial sector would welcome banks exploring ways, including the creation of a domestic bond market, to provide longer-term funding that better matches the average life of assets on the balance sheet of industrial players.
“We, as the industrialists, would like to see local banks establish even deeper relationships with major Export Credit Agencies and be able to act as an intermediary in such deals. We also need to develop the commodities market, specifically Iron Ore, Copper and Grain, as it will help with commodity hedging,” he added.
IPO plans:
Meanwhile, the company will sell shares in one of its units this year after postponing its own initial public offering (IPO), Bloomberg reported on Sunday. The state-owned holding company is working with JPMorgan Chase & Co. and HSBC Holdings for the share sale and is awaiting approval from the Abu Dhabi Executive Council, as per the report. “Our initial strategy was to IPO the main holding company,” Al Nowais was quoted as saying this by Bloomberg. “Subsequently we have changed our mind. We are now looking at the possibility of IPO-ing specific industries.” He, however, declined to say which unit is being considered for an IPO this year, according to Bloomberg.
