Senaat to spend $1.36bn on industrial products
Chairman also calls for financiers to develop local bond market to support industrialists' investment plans
Industrial holding company Senaat has announced that it is to invest $1.36bn on industrial projects over the next two years.
The company, which was created by Abu Dhabi's government as a way of diversifying the emirate's economy, owns a number of construction-related businesses including oil & gas contractor NPCC, Emirates Steel, Arkan Building Materials and Dubai-based cable manufacturer Ducab (in a joint venture with Dubai's government). It also owns the Taweelah Aluminium Extrusion Company Talex) in a joint venture with Al Ghurair Group's Gulf Extrusions and manages its 50,000 tonne capacity plant at Khalifa Industrial Zone (Kizad) in Abu Dhabi.
The company's plan was announced by its chairman, His Excellency Husain Jasim Al Nowais, at an investment conference organised by the National Bank of Abu Dhabi. It follows on from an investment
He argued that the industrial sector needs more support from the financial community, including the creation of a domestic bond market "to provide longer-term funding that better matches the average life of assets on the balance sheet of industrial players".
He also said industrialists would like to see more involvement from export credit agencies and the development of the commodities trading market to help with hedging prices.
“I am very confident about the future of our country and this is why we are investing AED 5 billion in more industrial projects over the next two years," he added.