Dubai-based IT major Almasa Group has plans to invest in Iraq in addition to setting up its own computer assembly line in the Jebel Ali Free Zone.
"We are also on way to diversifying our business portfolio as we are looking at other industries to invest," said Mehdi Amjad, president and CEO.
He said the group is carefully looking at options to employ its capital in areas other than the IT industry. But IT will remain at the heart of the group, which recorded 52 per cent growth in its profits and 44 per cent in revenues last year.
He said the group would establish two more companies (other than IT) within the next three to six months.
"We have also felt the need to branch out, rather than concentrate all our efforts and capital in one industry."
He said the group will announce its new venture later this year and will be implementing it with the same commitment that has seen it grow from a Dh1 million start-up to a Dh1.5 billion conglomerate in just eight years.
Amjad said each of the group's seven companies achieved substantial growth last year, taking the group's total revenue from $229.5 million (Dh842.2 million) in 2003 to $433 million (Dh1.58 billion), a growth of 44 per cent.
"The group forecasts turnover of about $650 million (Dh2.3 billion) in 2005, as it continues to expand its territorial coverage, sign on new vendors and clients, and diversify and consolidate its various business activities," he said.
"We expect around 50 per cent growth this year as well."
The group, which already has business activities in more than 60 countries in the Middle East, Europe, Asia and Africa, is planning to expand its operation to Iraq.
Amjad said the group's flagship company, Almasa IT Distribution, remains the cornerstone of the group with revenue of $332 million (Dh1.2 billion) in 2004, up from $205 million (Dh752 million). However, all its sister companies have also been growing at a remarkable peace.
He said although market competition is getting stiffer by the day and margins are under pressure, the group expects to grow at the same pace as it is expanding its operation and reaching out to new markets.
"Also, we have managed to cut down our operational cost by a third of our total expenditure, and it helps us keep our profit margins high," he said.
Almasa Group, he said, is also spending a certain percentage of its profit on charity projects.
"Our Almasa Charity established a few years ago is running a hospital with 120 doctors in Iran," he said, adding that the group would also build a day clinic and launch other welfare projects aimed at improving plight of the needy.
