Fabrication work under way at Emirates Building Systems.
DI units ride high on Mideast construction boom
Dubai, August 24, 2014
Dubai Investments (DI) has clinched significant orders and projects for 18 of its subsidiaries involved in the manufacturing of building materials and construction products.
A leading investment company listed on the Dubai Financial Market, DI said its subsidiaries such as Glass, Emirates Building Systems and Dubai Cranes have reported a number of new projects across Dubai, Abu Dhabi, Qatar and Saudi Arabia.
The construction activity across the UAE has witnessed a major upswing this year, with projects worth $46 billion awarded in 2014 alone, a significant rise from $38 billion last year.
A vast majority of these contracts are in the residential sector, and the uptrend in the construction sector is set to boost the country’s GDP for 2014 by four per cent to $404 billion, up from $390 billion in 2013.
Notable projects won by DI subsidiaries include glass orders for Dubai Design, Habtoor Hotel, Masdar office building in Dubai, Credit Lebanese HQ in Beirut, steel structures for Riyadh Public Transport, three petrochemical projects for Saudi Aramco, end-to-end steel building solutions for FIFA 2022 stadiums in Qatar, petrochemical projects in Oman as well as residential and airport developments in the UAE; and standard, overhead crane kits for ongoing projects with Emal, Dubal and Dewa.
DI has reinforced the production capabilities of its units dealing in building materials amidst accelerating trends in the real estate and construction sector across the UAE and the region, said a top official.
"2014 has been a momentous year for DI’s business growth in the real estate and construction sector," remarked Abdulaziz Bin Yagub Al Serkal, the company's general manager.
"The construction industry has always been a key source in driving growth for the UAE’s economy and the current upswing, especially in residential projects, has led to unprecedented demand for quality building materials and innovations – which offers us a huge growth opportunity," he added.
According to him, the high demand as a result of the construction boom in Saudi, Qatar, Oman, Kuwait and across the Middle East is also placing added demand on the capacities of its companies dealing in building materials.
"We are confident that the solid demand in the construction sector will continue in the foreseeable future and we are geared to cater to the required capacity," he noted.
In line with this, some of the DI subsidiaries have bolstered their production capacities. Emirates Building Systems have announced major expansion plans in the UAE and Saudi, given the escalating demand for steel structures for infrastructure projects, commercial and residential buildings as well as the oil and gas sector in Saudi and region.
DI said its subsidiary Emirates Extruded Polystyrene has announced plans to double its production capacity in the coming two years to 2.4 million sq m per year, buoyed by the burgeoning demand for its unique extruded polystyrene sheets across the UAE and the GCC markets.
Another unit, Dubai Cranes & Technical Services recently opened the first-of-its-kind crane storage and assembly facility in the region to cater to the heightened demand for cranes across the GCC and Mena region, while Saudi American Glass announced a 50 per cent increase in its production capacity to 1.4 million sq m.-TradeArabia News Service