Bank plans $2billion building materials company for southern hemisphere building boom
Khaleeji Commercial Bank, an Islamic private bank, has announced they are to invest $2billion in creating a buildings material company to help meet the increasing demand in the Gulf, Middle East and North Africa. While the northern hemisphere suffers from financial crises and building slow-down this symbolises a strengthening development growth in the south.
The new company, called Binaa, will aim to produce more than 32 million cubic metres of ready-mix concrete, precast and cement blocks per year as well as trading in steel, glass and aluminium.
Bank board member and chief executive officer Ebrahim H Ebrahim told local press: "Due to a variety of factors, there is a huge opening in the market at the moment for a building supply company that can serve both the institutional and retail segments.
"Our intention is to build a first-class, regional brand that will effectively reposition the building materials industry in the region.”
Khaleeji has also recently announced the investment of $163.5 million into a real estate investment company for India.
Rising oil prices have meant that construction materials costs are also rising but with massive buildings growth and developments such as the Burj Dubai (pictured) bringing increasing investment this is seen as an opportunity for competition within the materials industry.
Binaa has forged several strategic relationship with existing companies to ensure their success. Gulf Organisation for Industrial Consulting (GOIC) has been working with Binaa as a market adviser to develop the market assessment and entry strategy and China National Building Materials Company will serve as a strategic technical and trading partner in the venture.
Niki May Young