Emirates Neon plans to go global with outdoor media

Dubai: The annual revenue of Emirates Neon Group (ENG), which runs one of the largest outdoor media operations in the Gulf, is expected to jump to $2 billion (Dh7.3 billion) in five years, up from the current $750 million, a top official said.

"We want to become a global corporation within the next 10 years by expanding globally," Hanif Merchant, chairman of ENG told Gulf News in an exclusive interview.

"We want to successfully translate our domestic successes in the UAE to regional and international level. We have recently acquired a company in China and renamed it as ENG Consulting, China."

The group's real estate investment subsidiary, Ruwaad Holdings, will announce six projects in the next month's Cityscape exhibition, Merchant said.

Ruwaad, which means 'pioneer' in Arabic, last year signed a licensing contract for the development of a Paramount Pictures theme park in Dubai. Under the agreement, International Destination Brands, an affiliate of Ruwaad, will be responsible for funding the project.

The theme park will form part of a $2.5 billion development comprising hotels, resorts, retail areas and residences.

Ruwaad's portfolio will be split into tourism, education, real estate, sports and entertainment.

"We are finalising the details of the project and make some more announcements in the coming weeks," Merchant said.

"We will roll out Para-mount theme parks in other parts of the world as well."

Emirates Neon, which is currently undergoing a rebranding exercise under the ENG logo, was established in 1971 with outdoor signage business, spearheaded by Merchant.

The Gulf's advertising expenditure in the first six months of 2008 increased by 23.6 per cent to reach $3.77 billion compared to $3.05 billion for the same period of 2007, according to the Pan Arab Research Centre.

Outdoor signage business in the region has come of age over the last three decades as new technologies have made outdoor media more attractive. The oil-fuelled boom in the Gulf has also helped the outdoor media - which has successfully captured the boom on the large display boards. The ENG has successfully led this transformation.

Merchant, who hails from Pakistan, later ventured into textiles and consumer electronics manufacturing and trading businesses in the 1980s.

During the last few years, his company has been diversifying into real estate, print and electronic media as well as corporate training and learning.

He has partnered with a number of businessmen in setting up Emirates International Holding and Inshaa Properties. However, Ruwaad is the wholly-owned group subsidiary.

The group currently employs 1,500 people, of whom about 1,200 are working on the signage and outdoor media activities.

New projects

"With Ruwaad, we are planning some iconic projects that we will announce in October," Merchant said. "These include three towers and three hotel resorts."

The ENG's domestic success has been largely due to the political stability and the country's dynamic leadership. "Our success has been due to the political stability of the UAE, although our growth has been steered by the family," Hanif Merchant said.

"Due to the foresight of the UAE's leadership, we were able to benefit from the political stability and generate new assets and wealth."