The UAE's central location continues to boost its attractiveness as a regional hub for foreign investors, with the availability of excellent logistics infrastructure and a recovering economy facilitating the country's growth as a world leading international business, re-export and trading centre. As a result, business opportunities for global companies are starting to re-emerge after the local economy took a hit from the worldwide economic slump, with massive recovery efforts being undertaken by governments and the private sector breathing new life into the investment market. With aims to leverage the expanding market prospects, Danube Building Materials, the leader in construction, building materials and shop fitting industries, has rolled out an ambitious growth initiative, thereby underlining its confidence in the local market and the prospects it offers global businesses.
Successfully breaking away from being an oil dependent economy into a highly diversified international business centre, the UAE has provided Danube an ideal base for its rapidly expanding operations across the region. With a total of 22 global Danube retail facilities - 16 in the UAE, two in Oman, one each in Bahrain and Saudi Arabia and two in India, in addition to procurement offices in China and Canada, the company has recently diversified into a one-stop shop concept called 'Danube BUILDMART'. Another testament to the company's trust in the UAE's investment atmosphere is the recent launch of its AED 15 million 'Danube BUILDMART' in Ibn Battuta Mall, Dubai.
"The construction of our new manufacturing facility in TechnoPark is going at a steady pace, and we expect to start operations by early 2011. This investment, along with all other plans we have outlined for the UAE, is a strong indication of our unwavering confidence in this market and in its capacity to support our bold growth plans in the coming years," said Rizwan Sajan, Chairman, Danube Building Materials. "Working to elevate Danube BUILDMART's status as the top brand in the home interiors and building material industry with a presence in all major malls in the region, we aim to acquire major market share throughout the region within the next 5 years. After reaching that stage, we will be planning to take our business on a global scale."
Danube recently announced that it is looking at an initial public offering (IPO) listing in Saudi Arabia or the UAE within the next 5 years, following the significant growth it has achieved in the recent years in terms of geographical expansion and revenue targets. The company further revealed that it is also open to dual listing in both countries, as part of its aims to secure AED 2.5 to AED 3 billion in total revenues in the next three to four years, after hitting a total of AED 1 billion in annual turnover despite the challenges presented by the financial crisis.
"The UAE's strategic location also allows it to be an excellent venue for import and export activities in the GCC region. This unique advantage has allowed the country to become a central trading post and gateway for goods that go in and out of the region. There is no language barrier as English is widely spoken in the region. The country's wide array of Free zones also acts as investment opportunity magnets with its excellent investment packages and incentives - perfectly complementing the strong support provided to investors by the local government and banks, "concluded Sajan.
