Danube to invest AED 80 million to expand reach and bolster operations within Saudi market in 2009
Construction of over 2 million new housing units to solve housing shortage in the Kingdom
Danube Building Materials, the leader in construction, building materials and shop fitting industries, has announced plans to invest AED 80 million in Saudi Arabia in 2009, as part of its efforts to support multibillion mega projects that are expected to rise within the Kingdom in the next few years. This is expected to result in a stronger presence for the company, thereby allowing it to address the demand spurred by the construction of over 2 million new housing units that are expected to solve the housing shortage in Saudi Arabia under the government’s 8th Development Plan. The company’s investment in the Kingdom is a continuation of its expanding presence in the GCC, which currently comprises 14 branches in the UAE, two in Oman and one in Bahrain.
Having maintained a steady presence in the Kingdom for the last two years, Danube is gearing up to partake extensively in a new wave of aggressive building and construction activities within the largest construction market in the entire Middle East. In addition to the planned launch of a huge retail complex in Jeddah next month, the company also has plans for two manufacturing plants in the pipeline, including factories that produce Malemaine pressing units and gypsum ceiling tiles. Amidst the growing demand for building materials in Saudi, the company is seeking to bolster its presence in the market, where it currently supplies a total of 15,000 products to support the construction of several high-profile developments and individual residential project for the benefit of owners, consultants and architects.
“The massive oil revenues of Saudi Arabia empowers it to undertake massive strides to address the demand for built space, which is inevitable in all rapidly-growing economies,” said Rizwan Sajan, Chairman, Danube Building Materials. “In line with this, the Saudi Government is making tremendous efforts to address the need for residential projects amidst the fast growth of its population. Our plan to expand to Saudi underlines our commitment to the regional market, and our goal is to provide all projects - current and future - with top-grade products that can increase the efficiency and aesthetic value of properties.”
Increasing its focus on the development of its non-oil sector, the Saudi Government is planning to build six mega-economic cities across the Kingdom, near the areas of Tabouk, Medinah, Rabigh, Jazan and the Eastern Province. The construction alone of these modern cities is expected to create 1.3 million jobs, while a total of 4.8 million people can be accommodated upon their completion. Furthermore, all the activities that will result from this massive initiative is projected to contribute USD 150 billion to the Kingdom’s gross domestic product (GDP) and raise its per-capita GDP from USD 15,000 in 2006 to USD 33,500 by 2020. Amidst the extensive building activities, Danube has recognised the significant contribution it can extend to Saudi Arabia’s construction market and the economy as a whole.
“We can see extended growth opportunities given the continued period of expansion in the Kingdom, especially in the construction and infrastructure sectors. With our extensive range of products, we are confident that we will be able to deliver the building materials suitable for developments of all kinds, while matching the quality specifications and style requirements of Saudi customers. We are also looking at several economies within the Middle East where we can set-up concentrated business hubs to effectively address our regional customers’ building material needs,” concluded Sajan.
