Dubai Investments' glass unit to double exports
Dubai, February 10, 2010
Dubai Investments subsidiary Glass LLC plans to more than double exports to offset slack demand in the UAE due to the property slump, the company's general manager said.
Faisal Ali Rashid said the firm expects to double its revenues this year as it taps new export markets and opens two new units in Qatar and Saudi Arabia.
"We have changed our strategy due to the financial crisis. We will be doing more exports," he told reporters at a seminar. "About 70 percent of our products were in the local market. But now our exports will be 70 percent and local market share would be 30 percent."
The global economic crisis led to a steep property slump in Dubai and the UAE and contractors and suppliers are seeking deals elsewhere.
Glass earned revenues totalling 330 million dirhams in 2009 but despite falling demand in the UAE, it expects revenues to double in 2010.
The company has two manufacturing facilities in Dubai and one each in Abu Dhabi and Saudi Arabia. Its parent company, Dubai Investments, derives its revenue from the UAE and other Gulf countries.
"Our projections are 600 million-plus dirhams revenues this year due to the expansion plans we have. We are also seeing more business in new markets in South Africa, Asia and Russia," he said.
Two new glass processing factories are expected to come on stream this year in Qatar and Saudi Arabia with investments totalling around 55 million dirhams in the first phase.
"Today, Saudi Arabia is the biggest market in the region for us. Qatar is also a fast growing market," he said. - Reuters