By Abdul Basit www.khaleejtimes.com
Ducab, one of the leading manufacturers of high quality power cables in the Middle East, seeks majority stakes for production facilities outside the UAE, but put it on hold due to political unrest in Arab world, Chairman Ahmad Al Shaikh said.
“We don’t want to go into any partnership as a minority … because we are not investors. We are cable producers and believe we can add value as a major shareholder rather than a minority shareholder,” Al Shaikh told reporters on Wednesday while announcing the company’s annual financial results.
He mentioned that there is a huge potential for the company outside the country. “We are pursuing this path, which is not to undermine the local or regional market,” he added.
He said Qatar and Saudi Arabia are important markets for the company. “Definitely Qatar and Saudi Arabia have been and will be on our focus in the regional expansion,” he said.
Ducab cables and copper products are currently sold in over 40 countries worldwide across Middle East, Europe, Africa, and Far East in Asia. Approximately 65-70 per cent of Ducab’s total sales are currently made within the UAE market.
Al Shaikh said that due to certain reservations regarding rule and regulation in Saudi Arabia nothing finalised for setting up any production facility in Saudi Arabia, but it is on the drawing board. Without mentioning the place and name of partner, he said the company has done some feasibility studies regarding production facility in Saudi Arabia.
The company is already present in Saudi Arabia through sales office, he said, adding: “There is certain issues in rules and regulations. We have been trying to overcome or see what can be done on these issues.”
The Gulf countries are major export markets for the Ducab and the company is looking to explore some new markets in Europe and Africa this year.
“It is difficult to mention name of the countries because we are looking at all the countries in Europe and Africa.
Regarding Ducab interest in GCC rail projects, company’s Managing Director Andrew Shaw said, “We have links with multi-national companies with same projects and we were also involved in Delhi Metro and Dubai Metro.” The company sees this is a growing sector, he added.
For major contracts under the pipeline with Ducab, Shaw said significant projects are in Abu Dhabi in oil and gas sectors. “We see large contracts coming in for delivery this year.”