RAS AL-KHAIMAH, 10 August 2007 — Hydra Properties has acquired 20 percent stock in Ras Al-Khaimah Cement Company (RAK Cement) as part of the company’s strategy to diversify its investments within sectors that are related to real estate. The company plans to increase its share by the end of 2007.
Describing RAK Cement as one of the leading cement producers in the regional market, Dr Sulaiman Al-Fahim, chief executive officer, Hydra Properties, said in a press statement that the emphasis is on acquiring shares in companies dealing in building materials as this is in line with the company’s strategy for property development.
“Our vision is to expand Hydra Properties in a greater way and investing in the stock of Ras Al-Khaimah Cement Company represents one such move in the right direction, as there is a great demand for the company’s cement and other products with its sales charts indicating considerable growth and profits over the years,” he said.
The UAE is heading the construction industry in the GCC region with $35.6 billion worth of projects that comprise 63.7 percent of the total development projects, according to a report by Abu Dhabi National Exhibitions.
“Ras Al-Khaimah Cement Company produces the maximum amount of cement among the producing companies in the UAE, which are making continuous efforts to meet the demands of the massive, cement-hungry construction industry in the emirates. Since Hydra Properties has many ongoing and planned construction developments in the UAE, holding a stake in Ras Al-Khaimah Cement Company will also enable us to avail of cement supplies on a priority basis to meet our construction needs,” Al-Fahim said.
UAE is set to become the GCC’s largest producer of cement surpassing Saudi Arabia with expansion plans in the pipeline for increasing plants and production lines. Last year, UAE’s cement production was 12.9 million tons and consumption was 13.3 million tons. The construction sector in the region is witnessing a huge demand for cement.