Issue 1, May 2007
About EII
Latest News
CEO’s Message
EII ventures into the Power and Automation sector
It has been an eventful period for
Emaar Industries & Investments (EII)
since its establishment over a year
ago, and today we are glad that our
hard work and efforts have paid off.
We have managed to make EII a
force to reckon with in the regional
investment set-up. Following a series
of deals, some announced and others
in the pipeline, EII is on course to carve
out a special niche that will redefine
the course of industrial development
in the region.
Complementing the vision and
upholding the values and principles
of its parent company, EII is now wellestablished as one of the primary
conduits for converting the region’s
vast pool of capital liquidity into
sustainable industrial growth and
development. It also remains focused
on adding regional and international
industrialists and investment houses
to its list of partners and developing
strong relationships with private and
public initiatives in the UAE. While
on one hand we have been keen on
a strategic geographical expansion,
on the other, we have been steadily
increasing our employee strength in
the UAE to better serve our clients
and maximise value-creation.
Moving forward in 2007, we will take a
new direction for the implementation
of a three-year strategy to ensure
sustainable growth for the regional
manufacturing industry and further
increase our portfolio of companies
four folds by 2009.
In the last few months, we have also
ventured into new sectors as part of
our long-term plan to diversify our
portfolio. Our prime objective is to
establish ourselves as an industrial
zone specialist, a leading facilitator
of enduring industrial development,
and a first choice partner for new and
existing businesses.
As we look to fine-tune our strategy
and approach in 2007, the future
seems bright and opportunities
abundant, which means we are on
course to take EII to greater heights.
Dr. Ahmad Khayyat
Chief Executive Officer, EII
Emaar Industries & Investments
(EII) recently announced that it is
venturing into the local and
regional Power and Automation
sector through its established UAEbased company that will assemble
and supply Medium Voltage (MV)
and Low Voltage (LV) electrical
switchboards. The announcement
came during the 3rd ABB Technical Seminar 2007 held at ABB
Industries’ premises in Al-Quoz Industrial Park.
More on page 2.
EII partners with Damas in AED1bn jewellery-making
venture
EII unveiled a new partnership with
Damas, the international retail
jeweller, to set up an AED 1 billion
UAE manufacturing centre in Dubai.
The joint venture between EII and
Damas is set to pave the way for
regional jewellery manufacturing
to become a mainstream multibillion dollar industry with UAE at its heart.
More on page 2.
Multiforms, a subsidiary of EII,
recently announced a major tie-up
with Hyundai, the shipbuilding to
construction giant. The partnership
with one of Korea’s ‘gold standard’
industrial conglomerates confirms
the emergence of aluminium
fabricator, Multiforms, as one of the
market leaders. The partnership
with Hyundai will boost the company’s ability to explore opportunities
further afield in North Africa, Egypt and Europe.
More on page 2.
EII streamlines business processes with Microsoft
EII recently announced that it
is tackling its growing business
needs through a partnership with
Microsoft Gulf and Columbus IT. EII will implement the Microsoft
Dynamics NAV solution across its business with Columbus IT
supplying the complete suite of implementation services, from
Business Process Analysis (BPA) to post-implementation support.
EII is dedicated to investing in susttainable 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.
EII focuses on exploiting the potenttial of the fastest growing sectors
in the region, including building
materials, FMCG, healthcare, metals,
engineering industries including
equipments & machineries, electtronics & electrical equipment,
and chemicals & petrochemical
products.
Manufacturing Industry
Multiforms signs an MoU with Hyundai
Emaar Industries & Investments
(EII), a member of Emaar Propertties 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 establlishing joint ventures with leading
establishments. Since inception,
the company has succeeded in
creating an impressive brand that
inspires confidence in investors.
More on page 2.
Manufacturing is increasingly
becoming a mainstream activity
and a cornerstone of the booming
economy of the Middle East and
South Asia. Economic diversification
is being actively pursued and the
region is expected to witness in the
next few years the establishment
of environmentally safe, technological
advanced and capital intensive
industries producing high value
products that could compete in
international markets.
The development of manufacturing
capability offers economies a susttainable element of growth across
the region. The region presents an
attractive opportunity for private
equity investment in the manuffacturing sector due to the large
and rapidly growing economies,
institutional reforms and market
liberalisation which all create oppportunities for large-scale transacttions.
As a high-growth sector, manufacturing offers several investment
opportunities and Emaar Industries
& Investments is investing to turn
that opportunity into reality.
Subsidiaries
Multiforms
A leading manufacturer and suppplier of custom aluminum curttain walling and cladding and a
range of advanced architectural
materials.
Emirates Jewellery Manufactturing Company
A joint-venture company bettween EII and Damas producing
a full range of fashion jewellery,
from individual diamond and
gold collections to more generic
pieces.
Starwood Industries
Latest News
EII ventures into the Power and Automation sector through the establishment of Dynergy
Technologies
EII announced that it is venturing into the local and regional Power and Automation
sector through its recently established UAE-based company that will assemble
and supply Medium Voltage (MV) and Low Voltage (LV) electrical switchboards.
The announcement came during the 3rd ABB Technical Seminar 2007 held at ABB
Industries’ premises in Al-Quoz Industrial Park.
EII also announced its alliance with ABB Industries LLC, the regional arm of the global leader in Power and
Automation technologies, to provide technical and marketing support for the recently-established company. EII’s
industrial manufacturing expertise combined with ABB Industries’ technical know-how is set to create a leading
LV and MV assembly and distribution provider in the region.
Dynergy Technologies will operate with specific focus on energy solutions for local communities, hotels and tower
projects to begin with, after which it will expand its focus to include initiatives throughout the region. The new
entity is expected to generate a turnover of AED 100 million within the first three years of operations.
EII partners with Damas in AED1bn jewellery-making
venture
A primary manufacturer of qualiity internal and external doors,
wooden and aluminium kitchen
cabinets and wardrobes.
EII unveiled a new partnership with Damas, the international retail jeweller,
to set up an AED 1 billion UAE manufacturing centre in Dubai. The joint
venture between EII and Damas is set to pave the way for regional jewellery
manufacturing to become a mainstream multi-billion dollar industry with
UAE at its heart.
Haseeb Rasoul
Board members and senior executives from both companies recently met to
seal the partnership and announce the new venture. EII’s delegation, led by
Vice Chairman Mohammed Ali Al Hashemi and Chief Executive Dr. Ahmad
Khayyat, confirmed the terms and the structure with Mr. Tawhid Abdullah, the Managing Director of Damas.
A prime player in the field of
furnishing and interiors, speccialised in the production and
supply of woodwork in addition
to turn-key interior works and
decorations.
Advanced Composites
A design and manufacturing
company supplying quality and
high performance corrosion ressistant fiberglass products to
municipal, industrial, marine
and Oil & Gas industries.
Specialized Metal Systems
A key producer of school furnitture and a specialist in the field
of metal works and stainless
steel fabrication.
Dynergy Technologies
A UAE-based company speccialised in the assembly and
supply of Medium Voltage (MV)
and Low Voltage (LV) electriccal switchboards and operating
with specific focus on energy
solutions for local communities,
hotels and tower projects.
Depa United Group
A holding company for a group
of complementary subsidiaries
whose services include finishes
for floors, walls and ceilings;
refurbishment and upholstery
of furniture and case goods and
design coordination.
The new company, Emirates Jewellery Manufacturing Company, which is scheduled to start operations in July
2007 out of a 110,000 sq feet state-of-the art facility in the Dubai Multi Commodities Centre, will become the
single biggest jewellery manufacturer in the country and provide a base for the development and expansion of the
industry.
The company will consolidate local production for Damas’ retail network into one ‘super’ facility, from the previous
eight operations scattered around the country. Turnover is expected to amount to AED 1 billion within the first five
to six years of operations.
EII’s subsidiary, Multiforms, signs MoU with Hyundai
Multiforms, one of EII’s growing portfolio of manufacturing subsidiaries,
recently announced a major tie-up with Hyundai, the shipbuilding to
construction giant. The partnership with one of Korea’s ‘gold standard’
industrial conglomerates confirms the emergence of aluminium fabricator,
Multiforms, as one of the market leaders.
The partnership with Hyundai will boost the company’s ability to explore
opportunities further afield in North Africa, Egypt and Europe. It will not be limited to a single project and will
lead to the development of new business lines and increase the company’s ability to take on high tech engineering
projects.
This partnership signals Multiforms’ commitment to work with one of the giants of global industry and its emergence
as a major player in its specialist sector. It also enables the company to better serve its growing customer base and
meet the demands of more sophisticated projects and a rapidly expanding and developing market.
EII streamlines business processes with Microsoft
EII recently announced that it is tackling its growing business needs through
a partnership with Microsoft Gulf and Columbus IT. EII will implement the
Microsoft Dynamics NAV solution across its business with Columbus IT
supplying the complete suite of implementation services, from Business
Process Analysis (BPA) to post-implementation support.
The automation of EII’s business processes will take place across its entire organisation and subsidiaries - with
over 30 concurrent users set to enjoy the benefits of the new integrated end-to-end Enterprise Resource Planning
(ERP) technology. Microsoft Dynamics NAV integrates all the data and processes of an organisation into a unified
system. Specifically, the financial management, manufacturing and supply chain departments of EII will enjoy full
automation of functions and processes.
With over eight subsidiaries in its portfolio, EII has became aware of the need for a structured and user-friendly
system that will result in the smooth running of the business processes and ensure that the company is free to
focus on developing the business to help it reach its full potential. Microsoft Dynamics NAV works smoothly with
other products and EII has also implemented Windows Server 2003 and SQL Server 2005 as part of its mission to
innovate and use technology as a strategic business asset.
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Interview
Board of Directors
H.E. Mohamed Ali Alabbar, Chairman
H.E. Mohamed Ali Alabbar
is Chairman of Emaar, one
of the world’s largest real
estate companies. He brings
on board his visionary globaal perspective, successful
track record, and his proven
ability to develop and nurture
businesses across a range of
industries. Today, H.E. Alabbar is successfully taking the
Emaar business model to new markets across three continents.
H.E. Mohammad Ali Al Hashimi, Vice Chairman
What are the opportunities for EII in the region?
H.E. Mohammad Ali Al Hashimi, Vice Chairman
H.E. Mohammad Ali Al
Hashimi is widely respected
as a pioneer in the region’s
mortgage finance secttor. Moving from General
Manager to CEO following
a landmark IPO, he led the
transformation of Amlak
Finance to a multi-billion
Dirham public entity and a leading Islamic finance institution.
He is also the Vice-Chairman of Emaar Financial Services,
Executive Chairman of Zabeel Investments, a member of the
Young Arab Leaders Organisation and supports the Dubai
Autism Centre.
Mr. Hussein Mohammad Salem Al Meeza, Member of the
Board of Directors
Mr. Hussein Al Meeza is
the Managing Director of
Dubai Islamic Insurance
and Reinsurance Companny, Aman, a subsidiary of
Dubai Islamic Bank, and a
founding member of Emaar
Properties. Most recently Mr.
Al Meeza spearheaded the
launch of Emaar Financial Services, the UAE’s first online
brokerage house.
Mr. Saeed Humaid Al Tayer, Member of the Board of
Directors
Mr. Saeed Humaid Al Tayer is
the Managing Director of
Al Tayer Motors LLC,
Director of the Al Tayer
Group of companies, Board
Member of Dubai Media
Incorporated and Chairman
of the Dubai Racing Club.
His extensive experience
in the manufacturing and automotive sectors enables EII’s
business partners to gain an unequivocal advantage in their
fields.
Mr. Ali Ibrahim Mohammed, Member of the Board of
Directors
Mr. Ali Ibrahim Mohammed
is a Member of the Board of
Directors of Emaar Industries
& Investments and Vice
Chairman of Amlak Finance
PJSC. Mr. Mohammed is also
the Deputy Director General
for Executive Affairs in the
Department of Economic
Development, Dubai.
EII was founded with the objective of capitalising on the growth prospects of the
manufacturing sector in the region and supporting this growth as a strategic
investor and facilitator.
Today, winds of change are blowing over the Gulf region. The dependency of regional
economies on oil is giving way to stronger emphasis on the non-oil sector. For EII,
this presents a new opportunity to invest in high-growth companies and facilitate
their expansion, thus influencing the economy towards import substitution and
export promotion.
EII’s growth opportunities also come from the rapid strides made by the
construction, services and other related sectors.
What are the biggest challenges you might face in the regional market?
One of the key challenges faced by EII is in identifying the right growth associates,
which, however, is effectively addressed by our Investment department, which
undertakes extensive studies on market trends. As a company focused on equity
participation, EII also has to convince associates that our partnership is focused
on guiding their business to new heights. We streamline their processes and
help develop strategies, and play the role of facilitator for the growth of their
business.
How important is the Emaar brand name for EII?
The Emaar brand name provides high premium to EII as it instills immediate trust
in our associates, convincing them of our capabilities. Being part of Emaar also
helps us to leverage on the parent company’s expertise and procedures, and also
tap international markets.
Several banks and financial institutions also offer finance to manufacturers. Why
should they come to EII?
EII is more than a financial institution; it is a strategic investor and facilitator for
businesses. We help our associates form strategies and align their business for
greater growth through effective involvement in policy formulation.
We are focused on enabling the companies we invest in to incorporate international
best manufacturing practices, improve corporate governance, provide a solid and
flexible capital base and ensure sustainable cash flow. We also facilitate their
regional expansion into new markets. These are value-additions that financial
institutions do not offer.
You serve on the board of several companies and have been involved with Zabeel
Investments, Amlak and EII. What is your learning from these and how do you
manage all these responsibilities?
Every responsibility presents a new learning. My involvement with Zabeel
Investments, Amlak and EII has given me a clear insight into the functioning of
industries and the investment sector in the UAE and the region. Managing these
various responsibilities is strictly through proper time management and with the
support of a strong and highly dedicated team.
How does EII complement Dubai’s nine-year economic plan announced earlier
by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and
Prime Minister of the UAE and Ruler of Dubai?
The Dubai Strategic Plan announced by His Highness Sheikh Mohammed
envisages an annual GDP growth rate of 11 per cent for the emirate by a focused
approach on Economic Development, Social Development, Infrastructure, Land
and Environment, Safety, Security and Justice, and Public Sector Excellence.
Sheikh Mohammed’s Economic Development initiative focuses on the non-oil
sector, especially industries, manufacturing and services. This aligns perfectly
with EII’s founding objective of supporting industrial growth through strategic
investments.
The private sector will have a key role in this as it will drive the economy’s non-oil
dependent growth. The sector will play a key role in manufacturing and industries,
and EII can capitalise on and support the growth prospects in this direction.
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Our Team
Developing
a culture
of success
At EII we believe that teamwork is
essential to both our individual and
collective accomplishment. One of
the key elements practiced at EII
for the development of teamwork
spirits is building the commitment
and confidence of each team
member as well as the team as a
whole.
We aim to succeed as a trusted
investment partner to our clients
and continue to learn from our
employees, and strategic partners;
sharing skills, resources, and
experiences.
Shermin Mheidly,
Senior Associate,
Corporate Communications
Dr. Ahmad Khayyat
Chief Executive Officer
Mohammed Saeed Al
Raqbani
Deputy CEO
Jalal Jazzar
Chief Financial Officer
Asrar Mohammad
Senior Director,
Investments
Marcel M. Rached
Associate Director,
Business Development
Mousalam Alabdul Razzak
Senior Associate,
Investments
Mazhar Abid
Senior Associate,
Finance
Anjum Fatima
Senior Associate,
Industrial Zones
Wassim M. Saleh
Associate, Investments
Basel Khalil
Analyst, Investments
Asjad Mahmood Awan
Accountant
Heba Al Alami
PA to the CEO
Events
EII Management meets international trade delegates
Members of EII’s senior management, including Board Member Mr.
Ali Ibrahim Mohammed, gave an upbeat assessment of the company’s
prospects to trade and commercial delegates from around the world at a
special closed meeting in Dubai. The delegates, drawn from countries as
far apart as Japan, the US, Australia and Russia, were briefed about EII’s
mission to become a first choice partner for new and existing businesses.
Introduction lunch with investors and financial institutions
EII unveiled details of the key elements of its strategy - industrial zones,
capital intensive projects and dedicated research facilities - to an audience
that included top global, regional and local financial institutions. This
initial introduction was followed by individual private meetings attended by
various strategic investors and financial institutions to discuss investment
opportunities.
EII meets with prominent Argentinean and Egyptian delegation in Dubai
Rubén Caro, Ambassador of the Argentinean Embassy in the UAE. The
meeting served as a platform for the group to explore direct investment
opportunities within the industrial sector in the UAE and Argentina.
Dr. Ahmad Khayyat, Chief Executive Officer and Mohammed Saeed Al
Raqbani, Deputy Chief Executive Officer also met with H.E. Mr. Ahmed
Nazif, the Prime Minister of Egypt. The Prime Minister met key private
sector business leaders in a series of private sessions in Abu Dhabi in a
bid to boost an initiative aimed at increasing regional investment in Egypt’s
booming industrial sector.
Cairo Investment Forum
During the Cairo Investment Forum recently held in Cairo, Dr. Ahmad
Khayyat drew attention to EII’s investment module. He discussed in detail
EII’s innovative strategies for targeting local and regional companies
with potential to grow and become market leaders. A special emphasis
was placed on industrial manufacturing and petrochemicals, and on the
investment opportunities that the Egyptian market has to offer.
EII received a senior official delegation from Argentina led by Mrs. Débora
Giorgi, Minister of Production for the Province of Buenos Aires and H.E.
Emaar Industries & Investments P.O.Box 37239, Dubai, United Arab Emirates Tel: +971 (4) 427 4890 Fax: +971 (4) 427 4891 Email: info@eii.ae
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