How important is the Abu Dhabi Economic Vision 2030 strategy in guiding your business decisions and project expansions?
Senaat focuses on four sectors identified in the Economic Vision 2030: metals, building materials, food and beverages, and oil and gas services. Our strategy is to leverage the advantages of the emirate of Abu Dhabi. The government has invested heavily in infrastructure and provided all the required support in terms of regulations and resources to enable the smooth development of the industrial sector and allow for the creation of further investment opportunities.
Senaat plays its part by identifying, developing and operating capital and energy-intensive projects and businesses. These businesses act as anchor investments that allow for the development of downstream clusters.
Is Senaat planning any acquisitions in the near-term or is it more focused on organic growth?
“The best expansion opportunities for [Senaat] include investments that bring technology and know-how”
Suhail al-Ameri, Senaat
We are always looking to create, optimise and champion industrial assets in Abu Dhabi and the UAE, creating value and further expanding the industrial capabilities within the emirate. This could be through direct investments such as Emirates Steel, successful partnerships with the private sector such as NPCC, or the privatisation of assets as with Agthia and Arkan. Senaat has in the past focused on organic growth, but is open to acquisition opportunities as they come up.
What is the role of Senaat subsidiary Abu Dhabi Basic Industries Corporation (Adbic)?
Adbic has merged into GHC Senaat and is a significant part of the organisation. We have decided to bring business development operations under a single brand. That is in line with our overall vision and mission to contribute to the development of Abu Dhabi’s industrial sector and highlights the next stage in our successful journey to fulfil this mandate.
Under the Senaat GHC brand, Adbic will continue to act as GHC’s industrial business developer in Abu Dhabi, and it will develop projects in key sectors through public-private partnerships across the industrial value chain, linking upstream, midstream and downstream sectors.
In the first six months of 2012, Senaat increased its net profits 22 per cent year-on-year. What were the main drivers behind this growth?
Senaat has made total industrial investments of AED13bn ($3.54bn) since 2004, with an average annual investment of AED2.5bn over the past five years. We invested AED1.5bn in the first half of 2012 alone. Through the active management of these investments in our portfolio of industrial assets, we are able to maximise profitability and add value year after year.
What are the main areas the company will focus on for future growth?
There are many opportunities, but the best fit for Abu Dhabi’s needs include any investments that contribute technology and know-how and that have a high barrier to entry. We use such criteria when identifying the relevant opportunities that complement our existing portfolio, which is focused to produce high returns.
We have a proven track record for executing projects on the ground. A prime example is Emirates Steel, a true Emirati effort with Senaat as the driving force.