Danube to capitalize on market growth with implementation of key expansion initiatives

November 29, 2010

The UAE construction industry is expected to witness a compound annual growth rate (CAGR) of around 20 per cent from 2010 to 2013, according to the ‘UAE Construction Industry Outlook for 2012′ report by industry intelligence provider RNCOS, as rapid economic development continues to drive construction activities and infrastructure development in the emirate. Eyeing further growth in the local market, Danube Building Materials, the leader in construction, building materials and shop fitting industries, has revealed its aims to capitalize on the predicted growth, in line with its moves to implement key expansion initiatives for its ‘Danube BUILDMART’ retail complex chain.

Among the latest developments in Danube’s expansion efforts in the UAE was the recent inauguration of its AED 50 million ‘Danube BUILDMART’ in Dalma Mall, Abu Dhabi, the largest of all showrooms opened by the company, and prior to that the opening of its AED 15 million store under the same banner in Ibn Battuta Mall, Dubai. At present, there are a total of 25 global Danube retail facilities - 17 in the UAE, one in Saudi Arabia, two each in Bahrain and Oman and three in India, in addition to procurement offices in China and Canada.

“The bullish projections directed towards the UAE construction sector has drawn our focus further into broadening our presence in the domestic market, as we believe that excellent opportunities for growth are in sight for investors, developers and other players in the construction arena,” said Rizwan Sajan, Chairman, Danube Building Materials. “Our continuous growth is also reflective of the UAE’s steady movement towards recovery, as well as the importance of building materials suppliers in the continuous growth witnessed by the country in terms of quality, design and aesthetic standards of iconic projects. We are committed to delivering the highest quality products to our local customers, and we are proud to be witnessing major successes in our efforts to address the needs of the UAE market.”

With aims to hit AED 2.5 to AED 3 billion in the next three to four years as the market fully recovers and prices normalise, Danube Building Materials has recently announced that it is looking at an initial public offering (IPO) listing in Saudi Arabia or the UAE within the next 5 years. The company’s decision to go public is driven by the significant growth it has witnessed in the recent years, which peaked in 2009 when it secured a total of AED 1 billion in annual turnover despite the challenges presented by the financial crisis. The company further revealed that it is also open to dual listing in both countries.

“The payment situation between developers and contractors in the UAE is showing signs of improvement, thereby underscoring the steady path being taken by the emirates’ construction market towards a healthier growth. In line with this, we are focused on expanding our operations to strengthen our position and leverage the opportunities that will arise, as we are confident of the UAE construction market’s continuous development in the years to come,” concluded Sajan.

Local agency O2 Branding looks to KSA as a trend setter in the regional market

Al Riyadh - KSA, June 9, 2010 – Companies across the region flocked to the Kingdom of Saudi Arabia (KSA) this week for the “Saudi Brand and Communications Summit 2010”—held in Riyadh from June 5 – 8, 2010.  Noting the incredible potential in the KSA market for all kinds of communication expansions, Mohammed Johmani, CEO and Founder of O2 Network, spoke at the summit about the key drivers of Saudi branding and marketing sectors. Johmani’s agency O2 Branding served as a main sponsor of the event.    

Research reports suggest that total advertising spending in the Kingdom of Saudi Arabia (KSA) will recover at a compounded annual growth rate (CAGR) of nearly 10 percent from 2009-2013, with internet advertising expected to grow at nearly 32 percent.  With Saudi Arabia’s GDP being pegged as the highest in the Arab region, those in the branding and communications industry are excited to explore new innovations in the KSA media market.

“The strong foundations of the Saudi economy have encouraged companies to spend on growth during a time where most organizations are looking to cut costs, especially in marketing,” says Johmani.  “O2 Branding has definitely focused more of its energy on the Saudi market in the last few years, and this summit is the ideal platform to view the latest trends while networking with key decision makers in the region.”

O2 Branding is a perfect exemplar of the opportunities afforded to regional entrepreneurs looking to grow communication companies within KSA and the Arab world as a whole.  Part of the multi-discipline O2 Network, the agency assesses all aspects of a company’s “brand potential”, offering strategy design and development, brand-activation counseling, and company-wide workshops for brand management. 

O2 Branding grew out of the understanding that brands are organic in nature; an insight that is reflected in their mission to create ‘Living Brands’. The agency recognizes that brands look, speak, and behave according to their surroundings. In order to ensure an integrated brand culture, O2 Branding draws upon the expertise of the entire O2 Network, including interactive, PR, and advertising agencies, to offer clients integrated communication solutions.

Commenting on the ‘Living Brand’ approach, Johmani said: “To create living brands, we align brand strategies to consumer touch points.  O2 is unique in its communications approach because of its fundamental understanding that people interact with brands and experience them through multiple channels, which translate to the practices of marketing, public relations, and interactive digital media, all of which contribute to shaping certain characteristics of a brand. This approach ensures a comprehensive platform for the creation of an attuned brand culture. ”

Johmani was amongst amongst elite of regional and global figures who are speaking at the summit including Patrick Jephson, Former Private Secretary, HRH Diana, Princess of Wales; Mohamed El Fatatry, CEO, Muxlim, (Voted One of The World’s 500 Most Powerful Muslims); Werner Baumgartner, Managing Director, Swarovski Middle East; Terry Kane, Director Of Digital Strategy, Jumeirah Group; Majdi Al-Sahhaf, Director Marketing And Corporate Communications, Saudi Industrial Property Authority ‘MODON’; Shadi Bakhour, Director Sales And Marketing, Saudi Xerox; Rayan Qutub, Head Of Corporate Business Development And Investment Promotion ,Emaar, The Economic City; Cameron Walker, Director Corporate Communications, National Commercial Bank;  Siva Kumar; Global Head Of Customer Experience, HSBC; Tarik Hamou Hadi, Vice President Sales, Marketing And Innovation, Savola Foods; Mousa Obeid, Head Of Marketing KSA, Nokia;  Yasser Al-Kharobi, Head of Corporate Marketing, Rotana Media Group; Howard Belk, Co-President and CEO, Siegel+Gale.

Major topics of discussion at this year’s summit included connecting with Saudi youth, rules of branding in a post-recession environment, and the unique traits that define the Middle East communications industry within the larger, global scene. 

1.5 million sqm expected to enter domestic market over the next 2 years

April 18, 2010

The supply of mall-based retail Gross Leasable Area (GLA) in the Kingdom of Saudi Arabia (KSA) is expected to expand at a Compound Annual Growth Rate (CAGR) of 11.3 per cent to reach 8.3 million square meters by 2012, according to a recent report by Jiwar Real Estate Management & Marketing, a leading real estate company in the Gulf region and the marketing arm of the Saudi Bin Laden Group. The Saudi market is expected to produce an additional 1.5 million square meters of retail GLA within the next two years.

“The outlook for the Kingdom’s metropolitan mall-based retail market is excellent given the strong growth in demand and increasing occupancy rates. The government’s strategic focus on expanding the non-oil economy is likely to lead to the development of additional commercial industries, of which mall retailing will be a major beneficiary,” said Dr. Saleh Bin Abdullah Al Habib, CEO, Jiwar Real Estate Management & Marketing.

Jiwar is a leading player in the Saudi real estate market. The company actively pursues real estate opportunities based on feasibility studies undertaken in-house and with reputable consultants.

The KSA’s level of personal disposable income is anticipated to grow at a CAGR of 6.5 per cent to reach around SAR 659 billion by 2013. GDP per capita is also expected to rise at a CAGR of 7.3 per cent to SAR 78,723 by 2014. Both the personal disposable income and GDP per capita are expected to grow faster than inflation. Another factor contributing to the momentum of the Saudi retail market is the youthful composition of the Saudi population, with 63 per cent of citizens under the age of 30. The population growth in the KSA stands at 2.49 per cent as compared to the global average of 1.14 per cent.

More than 12 million people visit Saudi Arabia annually, thus making retail tourism a key driver in the Kingdom’s mall-based expansion. Jiwar constantly contributes to the growth of the domestic real estate market through the development, marketing and selling of prominent projects that help promote the KSA as a premier religious, residential, and cultural tourism destination.

Jiwar was established in 2002 as a subsidiary of the Saudi Bin Laden Group of companies. It was founded to serve the Abraj Al-Bayt mega project, one of the most prestigious developments in the holy city of Makkah Al-Mukarrama.  Providing overviews of Kaaba and Haram, the complex is one of the most prominent masterpieces and landmarks surrounding the Holy Mosque. Jiwar’s approach to property marketing, management and development is founded on the creative concepts embodied by its vision and mission, which both commit to the provision of complete real estate investment services.

Mindware targets growing IT market in the country via strong local channel network

Patrick Antoun, Lebanon Country Manager, Mindware

The information technology sector in Lebanon is forecasted to witness around 7 per cent compound annual growth rate (CAGR) in 2009, thereby underlining the market’s considerable growth potential after hitting an estimated USD 251 million last year. Read the full story