Daman firm to invest in Jebel Ali projects

Dubai: Daman Investments has launched a UAE-focused investment holding company in partnership with Arab investors with an initial capital of $180 million (Dh660.6 million).

Buildan Development Limited has nine founding partners, including Daman Investments.

The partners are from Iraq, Kuwait, Saudi Arabia, the UAE, and are a mix of private and public sector institutions as well as high net worth individuals.

Buildan is a venture capital company that aims to become a leading developer and investor in aviation and logistics-related businesses as well as real estate projects located primarily within and in the vicinity of the new Al Maktoum International Airport developed by Dubai World Central at Jebel Ali.

Daman officials said Buildan will work through direct investment, partnerships, venture capital and infrastructure investments.

Already in operation, Buildan is fully staffed and set up with projects in the pipeline, some of which are nearing completion. Major projects will be announced in mid-October.

"Buildan was created to participate in very early entry opportunities which we recognised when the new Jebel Ali area airport was announced. Conceived as a holding company that will act directly or through special purpose vehicles, Buildan is a very early strategic investor within this new infrastructure city and international logistics hub," said Shehab Gargash, chief executive officer of Daman Investments.

"We believe that Buildan is yet another example of Daman's ability to bring premium financial products to life with enhanced investor value. We are proud to be a pioneer investor in this important infrastructure and logistics hub which will change the face of transportation and tourism in the region," he said.

When asked about future projects and long term planning Gargash replied: "As business evolves, Buildan will naturally require a broader capital base. We foresee that we may consider an IPO within a 4-5 year time horizon."

Ahmad Al Matroushi, strategic project manager, said: "We have had the opportunity to work closely with Dubai World Central and their highly professional team from a very early stage of the project. This enabled us to bring value as a private sector contributor to this impressive initiative."

Buildan's initial focus and primary objectives are the development of assets and operating businesses located primarily in the Al Maktoum International Airport area located in Jebel Ali.

These businesses may include specialised airport facilities, long-term investments in the airline industry and freehold purchases of commercial property, warehousing or logistics property as well as specialised airport facilities and residential property.