The Abu Dhabi National Company for Building Materials (Bildco) has approved a proposal to allow foreigners to own up to 25 per cent of the company.
The approval came at an extraordinary general meeting of the Abu Dhabi listed company yesterday.
"There is high interest from foreigners in acquiring shares in our company. Allowing foreigners to own shares would also lead to more trading and eventually benefit investors," said Edward J. Najjar, general manager of Bildco.
"The company is doing very well and our financial performance during the first half of this year was strong," he told Gulf News.
Currently, all shares of the company are held by the general public. Following the approval, the company will inform the relevant authorities, including the Ministry of Economy and Planning, he said.
During first half this year, Bildco earned a net profit of Dh43 million, almost equivalent to the entire profit earned in 2004.
It has two other companies Bildco Reinforcing Steel Services and Bildco Cement Products.
Expansion plans are under way to set up a steel rolling mill in Abu Dhabi, said Najjar.
"The plant will manufacture steel reinforcing bars and there is interest from certain bodies. We also have the funds but we have not yet decided about the investment and who would invest," he said.
Given the booming construction sector, Bildco is optimistic of grabbing a bigger share of the market.
"The market is getting very big in Abu Dhabi and the UAE and demand for our products is surging. We needn't look outside the UAE for business," he said.
Bildco is capitalised at Dh200 million. The company opted for a stock split from Dh100 to Dh10 and to Dh1 in just two years.
