- Posted April 7, 2014 by
Abu Dhabi, United Arab Emirates
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Senaat to continue investment in large scale industries in Abu Dhabi, focusing on metals sector
Large Scale Industries
Abu Dhabi, capital of the United Arab Emirates, has for many years cultivated a vision for robust, sustainable, long-term industrial growth. No company is more instrumental to that growth then Senaat. For decades, Senaat has implemented a government mandate to develop diverse, large-scale businesses through active investment in a number of industries.
"Senaat continues to pursue its mandate through investing in large scale industries and industries that require energy and intensive capital, which is out of reach of individuals." SUHAIL AL AMERI, CEO, SENAAT
"Senaat has invested into mega projects in order to make sure that there's an opportunity for the private sector to grow in the downstream." JAMAL AL DHAHERI, COO, SENAAT
This development has created a wealth of opportunities for private sector growth, including in small and medium enterprises.
"We complement the private sector and we build our capacities in order to meet the supply and demand within the market." JAMAL AL DHAHERI, COO, SENAAT
Contribution to Industrialization
Senaat’s activities have also helped in the Government’s drive to diversify the economy of Abu Dhabi and reduce its dependency on the oil and gas industry. As a result, Abu Dhabi’s GDP now sits at $248 billion dollars annually, thanks in large part to industrial growth fueled by projects and investments overseen by Senaat.
In an economy once totally dependent upon the energy industry, several other industries have now grown over the years to become significant regionally and internationally. Senaat’s own success has mirrored this growth.
"Currently we are we are concentrating in metals, in the metal sector, and particularly in aluminium downstream industries, and the scale of investment is a sizable investment." SUHAIL AL AMERI, CEO, SENAAT
Senaat has invested over $4.4bn in the non-oil sector since 2004. In 2012, the group brought in revenue of roughly $3.3bn, resulting in over $350m of net income.
Senaat’s activities are targeted at four industries in particular: metals, oil and gas, construction and building materials, and food and beverage manufacturing.
Metals in particular command strong attention, especially aluminum. Senaat’s subsidiary, Emirates Steel, has grown to a production capacity of 3.5 million tonnes of long products, and is expanding into other areas as well.
"Our expansion will be in flat products. We see a market opportunity to establish hot roll coil plants and our aim is to produce 2.1 million tons of hot roll coil." SAEED AL ROMAITHI, CEO, EMIRATES STEEL
Currently, the company supplies 60-70% of the demand in the UAE, and also is expanding exports.
"Emirates Steel has sold products all over the world; from South Asia, to Europe, to Africa, and of course to all GCC countries, plus the United States market." SAEED AL ROMAITHI, CEO, EMIRATES STEEL
Senaat also continues to explore new projects, like the aluminum extrusion company Talex, currently under development. There are also local partnerships that will allow Senaat to leverage available resources to manufacture products more cost-effectively.
For example, a new project in the Khalifah Industrial Zone Abu Dhabi, Kizad, will allow for Ducab to take advantage of aluminum smelted by the company Emal, and produce tens of thousands of metric tonnes of aluminum alloy rods, wires, and bare overhead conductors each year.
Abu Dhabi Economic Vision 2030
These downstream strategies are examples of Senaat’s support of the key initiatives central to Abu Dhabi’s Economic Vision for 2030, including reduction of reliance on the energy industry, and cultivation of knowledge-based businesses.
"The steel sector is one of the core sectors in the vision of 2030 for Abu Dhabi." SAEED AL ROMAITHI, CEO, EMIRATES STEEL
"We have invested billions of dollars to support the Vision of Abu Dhabi 2030." JAMAL AL DHAHERI, COO, SENAAT
As Abu Dhabi’s whole economy develops and grows, Senaat sits at the center of the industrial sector, creating opportunities and investing for the future.