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The holding company HadeedMENA is looking at creating capacity of 8 million tonnes per year (tpy) in the next four years and eventually 12 million tonnes, serving 15 per cent of the Middle East and North Africa’s needs, GFH chairman Essam Janahi announced at a launch event.
The investment will have an end-value of $5 billion, he said.
HadeedMENA would be officially established by the end of September while acquisitions and tie-ups would be decided from October onwards.
 “HadeedMENA will operate in several locations across Asia and Africa serving both upstream and downstream requirements in the marketplace,” said Janahi. “Upstream production will be located in countries rich in iron ore and coal, while downstream activity will focus on countries with exceptionally high demand across the GCC and the MENA region.”
Likely locations for the upstream ventures would be the Indian Subcontinent, Africa and Yemen.
Discussing objectives, Janahi said: “We intend to differentiate ourselves by taking a ‘top to bottom’ approach to the value chain. It will focus both on upstream production for steel billets as well as downstream manufacturing for steel rebars and structures.”
GFH, which conceived the conglomerate, has teamed up with strategic partners Emirates International Investment Company, Khaleej Development Company, Q-Invest and First Energy Bank and technical partners and market advisors MN Dastur and Gulf Organisation for Industrial Consulting.
The consumption of steel and steel products in the Mena region was estimated at 35.4 million tonnes in 2006 although the region produces only around 24 million tonnes.
The Middle East is said to account for $2 trillion of investments in the construction and real estate sectors stemming from enormous liquidity created by high oil prices.
Janahi said market studies showed the demand supply gap was projected at 10.2 million tonnes by 2020 in the Mena region and that the new company aimed to capture 10 per cent of the marketing share by 2012.
The plan was to have initially $1.25 billion coming as private placement from founding members plus some others, Janahi said.
The official said the founders were interested in an IPO but that was not a critical issue at the moment. An IPO would entail obtaining approvals from the concerned authorities. What was important at the present time was to “capture the opportunity.”]]>

http://www.gulfindustryonline.com/source/17/09/images/Gulf-Finance-Hou.jpg Bahrain-based Gulf Finance House (GFH) and several other Gulf institutions have formed a strategic partnership to set up a steel conglomerate embracing both upstream and downstream ventures.
The holding company HadeedMENA is looking at creating capacity of 8 million tonnes per year (tpy) in the next four years and eventually 12 million tonnes, serving 15 per cent of the Middle East and North Africa’s needs, GFH chairman Essam Janahi announced at a launch event.
The investment will have an end-value of $5 billion, he said.
HadeedMENA would be officially established by the end of September while acquisitions and tie-ups would be decided from October onwards.
 “HadeedMENA will operate in several locations across Asia and Africa serving both upstream and downstream requirements in the marketplace,” said Janahi. “Upstream production will be located in countries rich in iron ore and coal, while downstream activity will focus on countries with exceptionally high demand across the GCC and the MENA region.”
Likely locations for the upstream ventures would be the Indian Subcontinent, Africa and Yemen.
Discussing objectives, Janahi said: “We intend to differentiate ourselves by taking a ‘top to bottom’ approach to the value chain. It will focus both on upstream production for steel billets as well as downstream manufacturing for steel rebars and structures.”
GFH, which conceived the conglomerate, has teamed up with strategic partners Emirates International Investment Company, Khaleej Development Company, Q-Invest and First Energy Bank and technical partners and market advisors MN Dastur and Gulf Organisation for Industrial Consulting.
The consumption of steel and steel products in the Mena region was estimated at 35.4 million tonnes in 2006 although the region produces only around 24 million tonnes.
The Middle East is said to account for $2 trillion of investments in the construction and real estate sectors stemming from enormous liquidity created by high oil prices.
Janahi said market studies showed the demand supply gap was projected at 10.2 million tonnes by 2020 in the Mena region and that the new company aimed to capture 10 per cent of the marketing share by 2012.
The plan was to have initially $1.25 billion coming as private placement from founding members plus some others, Janahi said.
The official said the founders were interested in an IPO but that was not a critical issue at the moment. An IPO would entail obtaining approvals from the concerned authorities. What was important at the present time was to “capture the opportunity.”

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The specially designed profile is made of two pieces and weighs 30kg/m with a width of 1,000 mm. Gulf Extrusions had been specifically chosen to supply the customised profile because of its undisputed leadership and reputation as a world-class producer of extruded products. The Index Tower, which is located at Dubai International Finance Centre (DIFC) and considered one of the most important projects in the region, will feature residential floors with the highest views in the world.
“This is another important milestone for Gulf Extrusions and validates the company’s status as the preferred supplier of world-class extruded aluminium profiles in the regional market. There has been so much anticipation surrounding the Index Tower both from developers and prospective investors; these expectations can only be met or exceeded by utilising the most advanced components required for the project,” said Modar Al Mekdad, general manager, Gulf Extrusions.]]>

Gulf Extrusions, one of the largest aluminium extrusion plants in the Gulf, has announced that it has produced the biggest aluminium extruded profile in Asia and Africa, fulfilling its part in a partnership with Multiforms to supply world-class aluminium profiles for the iconic mixed-use building project Index Tower. Production of the profile has recently commenced as the skyscraper in Dubai’s financial district is projected to be completed by the end of this year.
The specially designed profile is made of two pieces and weighs 30kg/m with a width of 1,000 mm. Gulf Extrusions had been specifically chosen to supply the customised profile because of its undisputed leadership and reputation as a world-class producer of extruded products. The Index Tower, which is located at Dubai International Finance Centre (DIFC) and considered one of the most important projects in the region, will feature residential floors with the highest views in the world.
“This is another important milestone for Gulf Extrusions and validates the company’s status as the preferred supplier of world-class extruded aluminium profiles in the regional market. There has been so much anticipation surrounding the Index Tower both from developers and prospective investors; these expectations can only be met or exceeded by utilising the most advanced components required for the project,” said Modar Al Mekdad, general manager, Gulf Extrusions.

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The Dh20 million ($5.4 million) contract for the Expo Centre in Pakistan’s second largest city was signed early this year and construction of the Multispan exhibition halls is set to provide more than 27,000 sq m of space on final completion.
Pakistan is already one of MBS’s most important export markets and this large project is an indication of growth from the organisation’s previous hard work in the country.
“With over 1,800 projects across the Middle East our growth in the region has been exceptional,” said Bob Webster, managing director, MBS.
 “Our long-term vision is to consolidate and build on our business in the region and beyond. The completion of this major project in Pakistan is a clear indication of the direction into which we are taking Mammut Building Systems,” he added.
MBS is a subsidiary of Emaar Industries and Investments (EII), the private joint stock company aimed at capitalising on the growth potential of the Middle East, North African and South Asian manufacturing sectors. MBS has benefited from the multi-faceted investment strategy employed by EII, which has strategically identical goals for its subsidiaries.
EII’s investment is not restricted to just financial support. It concentrates much of its investment in building managerial and operational capabilities within all its subsidiaries. MBS has been able to benefit from EII’s own in-house management, implementing this expertise for various elements of its growing business.
Founded in Jebel Ali, Dubai, UAE, in 1997, MBS is a leading manufacturer of pre-engineered steel buildings in the region. From its 30,000 sq m covered-area factory at Hamriyah Free Zone in Sharjah, MBS has the capacity to deliver 6,000 tonnes of pre-engineered steel and over 180,000 sq m of polyurethane-injected sandwich panels per month. Emaar Industries & Investments acquired a majority stake in MBS in April 2007 and since then has been involved in assisting the company in its plans to raise production capacity from 6,000 tonnes per month to 12,000 tonnes per month, and build a structural steel division.
EII, a member of Emaar Properties PJSC, is a private joint stock company established in August 2005 to capitalise on the growth prospects of the Middle East and North Africa (Mena) and South Asian manufacturing sector as a strategic investor and partner. EII strengthens industries by investing in existing businesses and establishing joint ventures with leading establishments. Since inception, the company has succeeded in creating an impressive brand that inspires confidence in investors.
EII is dedicated to investing in sustainable companies and projects that are economically beneficial and commercially sound. EII is focused on maximising its subsidiaries’ long-term value, exposing them to industrial best practices, improving corporate governance, providing a solid and flexible capital base and ensuring sustainable cash flow.
It focuses on exploiting the potential of the fastest growing sectors in the region, including building materials, FMCG, healthcare, metals, engineering industries including equipment and machinery, electronics and electrical equipment, and chemicals and petrochemical products.]]>

Mammut Building Systems (MBS), one of the leading manufacturers of pre-engineered steel buildings, has announced that it has begun delivery of the first of four exhibition buildings for the Lahore Expo Centre.
The Dh20 million ($5.4 million) contract for the Expo Centre in Pakistan’s second largest city was signed early this year and construction of the Multispan exhibition halls is set to provide more than 27,000 sq m of space on final completion.
Pakistan is already one of MBS’s most important export markets and this large project is an indication of growth from the organisation’s previous hard work in the country.
“With over 1,800 projects across the Middle East our growth in the region has been exceptional,” said Bob Webster, managing director, MBS.
 “Our long-term vision is to consolidate and build on our business in the region and beyond. The completion of this major project in Pakistan is a clear indication of the direction into which we are taking Mammut Building Systems,” he added.
MBS is a subsidiary of Emaar Industries and Investments (EII), the private joint stock company aimed at capitalising on the growth potential of the Middle East, North African and South Asian manufacturing sectors. MBS has benefited from the multi-faceted investment strategy employed by EII, which has strategically identical goals for its subsidiaries.
EII’s investment is not restricted to just financial support. It concentrates much of its investment in building managerial and operational capabilities within all its subsidiaries. MBS has been able to benefit from EII’s own in-house management, implementing this expertise for various elements of its growing business.
Founded in Jebel Ali, Dubai, UAE, in 1997, MBS is a leading manufacturer of pre-engineered steel buildings in the region. From its 30,000 sq m covered-area factory at Hamriyah Free Zone in Sharjah, MBS has the capacity to deliver 6,000 tonnes of pre-engineered steel and over 180,000 sq m of polyurethane-injected sandwich panels per month. Emaar Industries & Investments acquired a majority stake in MBS in April 2007 and since then has been involved in assisting the company in its plans to raise production capacity from 6,000 tonnes per month to 12,000 tonnes per month, and build a structural steel division.
EII, a member of Emaar Properties PJSC, is a private joint stock company established in August 2005 to capitalise on the growth prospects of the Middle East and North Africa (Mena) and South Asian manufacturing sector as a strategic investor and partner. EII strengthens industries by investing in existing businesses and establishing joint ventures with leading establishments. Since inception, the company has succeeded in creating an impressive brand that inspires confidence in investors.
EII is dedicated to investing in sustainable companies and projects that are economically beneficial and commercially sound. EII is focused on maximising its subsidiaries’ long-term value, exposing them to industrial best practices, improving corporate governance, providing a solid and flexible capital base and ensuring sustainable cash flow.
It focuses on exploiting the potential of the fastest growing sectors in the region, including building materials, FMCG, healthcare, metals, engineering industries including equipment and machinery, electronics and electrical equipment, and chemicals and petrochemical products.

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The inaugural two-day summit will focus on the Middle East-China diamond and jewellery trade, and will be held from November 8 – 9, 2008 at the Atlantis Hotel, Palm Jumeirah.
The summit builds on the visit to China by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and reinforces ongoing efforts to further strengthen trade relations between both countries. It also follows two strategic agreements signed earlier this year by DMCC with the Government of Panyu, China, and with the Gems & Jewellery Trade Association of China, for increased cooperation towards mutual growth and promotion of diamond and jewellery trade.
The diamond trade in the UAE alone witnessed record growth in 2007, crossing the stellar $10 billion mark. Dubai’s rough diamond trade alone witnessed a 32 per cent growth in the first quarter of 2008 as compared to 2007, standing at a total of $1.5 billion while thepolished diamond trade reached $2.7 billion. The Chinese jewellery industry has also achieved record sales in 2007, with a growth of 11 per cent compared to 2006 to reach over $26 billion.
Ahmed Bin Sulayem, executive chairman, DMCC, said: “Emerging economies such as the UAE, Saudi Arabia, Turkey and Egypt are all set to become the centre of the fast-growing jewellery business in the next three years, with Dubai being the natural gateway for the wider region. In fact, the UAE and Hong Kong are among the prominent markets experiencing exponential growth. This summit will focus on the growing business potential between China and the Middle East, two major global trading blocs.”
According to Peter Meeus, executive director – diamonds, DMCC, the summit will serve as a platform for the manufacturing, trading and retail jewellery communities between both countries to mutually grow trade opportunities. He added that the event is poised to further boost the diamond trade industry, promote Dubai as a major diamond hub and present DMCC as the facilitator of the growing diamond trade in the region.
Commenting on the opportunities for the diamond industry, Meeus said: “Although diamonds are relatively new in the Chinese and Middle Eastern markets, leading retail jewellery companies have witnessed phenomenal growth in the past decade. DMCC’s strategic objective in hosting this summit is to bring these companies together and create opportunities for them to further grow their business.” ]]>

Dubai Multi Commodities Centre (DMCC) has announced that it will organise the first Dubai Diamond and Jewellery Summit with the aim of providing the international jewellery trade with a forum to initiate relationships in the Middle East - the fastest growing market for diamonds.
The inaugural two-day summit will focus on the Middle East-China diamond and jewellery trade, and will be held from November 8 – 9, 2008 at the Atlantis Hotel, Palm Jumeirah.
The summit builds on the visit to China by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and reinforces ongoing efforts to further strengthen trade relations between both countries. It also follows two strategic agreements signed earlier this year by DMCC with the Government of Panyu, China, and with the Gems & Jewellery Trade Association of China, for increased cooperation towards mutual growth and promotion of diamond and jewellery trade.
The diamond trade in the UAE alone witnessed record growth in 2007, crossing the stellar $10 billion mark. Dubai’s rough diamond trade alone witnessed a 32 per cent growth in the first quarter of 2008 as compared to 2007, standing at a total of $1.5 billion while thepolished diamond trade reached $2.7 billion. The Chinese jewellery industry has also achieved record sales in 2007, with a growth of 11 per cent compared to 2006 to reach over $26 billion.
Ahmed Bin Sulayem, executive chairman, DMCC, said: “Emerging economies such as the UAE, Saudi Arabia, Turkey and Egypt are all set to become the centre of the fast-growing jewellery business in the next three years, with Dubai being the natural gateway for the wider region. In fact, the UAE and Hong Kong are among the prominent markets experiencing exponential growth. This summit will focus on the growing business potential between China and the Middle East, two major global trading blocs.”
According to Peter Meeus, executive director – diamonds, DMCC, the summit will serve as a platform for the manufacturing, trading and retail jewellery communities between both countries to mutually grow trade opportunities. He added that the event is poised to further boost the diamond trade industry, promote Dubai as a major diamond hub and present DMCC as the facilitator of the growing diamond trade in the region.
Commenting on the opportunities for the diamond industry, Meeus said: “Although diamonds are relatively new in the Chinese and Middle Eastern markets, leading retail jewellery companies have witnessed phenomenal growth in the past decade. DMCC’s strategic objective in hosting this summit is to bring these companies together and create opportunities for them to further grow their business.”

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The company, which accounts for about a fifth of steel and by-products sales in the kingdom, plans to start a 1-million-tonne reinforced steel plant in Jeddah by early 2011, CEO Mehdi bin Nasser Al-Qahtani told Reuters.
It also hopes to start production from a planned 1.8-million direct reduced iron plant which will most likely be located in the gas-rich Eastern Province towards the end of 2012 at the earliest, he added.
The two projects will cost between SR3.6 billion ($484.4 million) and SR4 billion and increase the company’s overall production of steel products to 4.6 million tonnes to cater for an expected rise in domestic demand in the coming years.
“We are working on financing ... Our group is linked to Al Rajhi Bank so there will be equity injection from owners and loan contribution from (state-run) Saudi Industrial Development Fund as well as from other banks,” he said.
The firm plans to cut prices of its products by between 6 and 10 per cent, starting this week, Al-Qahtani said.
The planned price cut follows a decline in the prices of scrap metal, the main input the company uses to make steel products, Al-Qahtani said in a telephone interview.
“The government’s decision to ban scrap metal exports has led to a 10 per cent drop in the price of this input ... We want to reflect this decrease on the final consumer,” he said.
Prices of steel have almost doubled over the past two years as demand has outpaced supply in Saudi Arabia, where the government and the private sector are spending hundreds of billions of riyals on infrastructure and housing projects.
The rise in steel prices, exacerbated by increases in other input costs, has raised fears on the viability of some projects. A Riyadh commerce and industry chamber official said in November that some 80 per cent of small and medium-sized construction projects have been put on hold because of the surge in building materials and labour costs.
Saudi steel producers have a combined annual capacity of 8.43 million tonnes, according to Arab Steel, an industry association. Other steel producers in the kingdom include Hadeed, which is controlled by Saudi Basic Industries Corp, and Al-Tuwairqi Group.
Rajhi Steel Industries is a unit of industrial conglomerate Mohammed Abdul-Aziz Al-Rajhi and Sons, the owners of which are related to the main owners of Al-Rajhi Bank, the Arab world’s largest lender by market value.]]>

Al-Rajhi Steel Industries, one of Saudi Arabia’s three largest steel producers, has said it plans to spend up to SR4 billion ($1.07 billion) to more than double its production capacity by as early as 2012.
The company, which accounts for about a fifth of steel and by-products sales in the kingdom, plans to start a 1-million-tonne reinforced steel plant in Jeddah by early 2011, CEO Mehdi bin Nasser Al-Qahtani told Reuters.
It also hopes to start production from a planned 1.8-million direct reduced iron plant which will most likely be located in the gas-rich Eastern Province towards the end of 2012 at the earliest, he added.
The two projects will cost between SR3.6 billion ($484.4 million) and SR4 billion and increase the company’s overall production of steel products to 4.6 million tonnes to cater for an expected rise in domestic demand in the coming years.
“We are working on financing ... Our group is linked to Al Rajhi Bank so there will be equity injection from owners and loan contribution from (state-run) Saudi Industrial Development Fund as well as from other banks,” he said.
The firm plans to cut prices of its products by between 6 and 10 per cent, starting this week, Al-Qahtani said.
The planned price cut follows a decline in the prices of scrap metal, the main input the company uses to make steel products, Al-Qahtani said in a telephone interview.
“The government’s decision to ban scrap metal exports has led to a 10 per cent drop in the price of this input ... We want to reflect this decrease on the final consumer,” he said.
Prices of steel have almost doubled over the past two years as demand has outpaced supply in Saudi Arabia, where the government and the private sector are spending hundreds of billions of riyals on infrastructure and housing projects.
The rise in steel prices, exacerbated by increases in other input costs, has raised fears on the viability of some projects. A Riyadh commerce and industry chamber official said in November that some 80 per cent of small and medium-sized construction projects have been put on hold because of the surge in building materials and labour costs.
Saudi steel producers have a combined annual capacity of 8.43 million tonnes, according to Arab Steel, an industry association. Other steel producers in the kingdom include Hadeed, which is controlled by Saudi Basic Industries Corp, and Al-Tuwairqi Group.
Rajhi Steel Industries is a unit of industrial conglomerate Mohammed Abdul-Aziz Al-Rajhi and Sons, the owners of which are related to the main owners of Al-Rajhi Bank, the Arab world’s largest lender by market value.

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