The marine industry is a significant supporter to the economy in the UAE. Therefore, “Gulf Navigation Holding PJSC” is expanding through signing a Memorandum of Interest & Cooperation with “Ali & Sons Marine Engineering Factory (ASMEF)”. This potential cooperation indicates that the maritime services inaugurates a promising significant investment opportunity.
The Dubai-based Gulf Navigation Holding PJSC, listed on the Dubai Financial Market under “GULFNAV”, continues its rapid commercial and performance success. Gulf Navigation has announced a potential strategic cooperation with “ASMEF” in Abu Dhabi with the intention to establish a joint venture company in rendering services in the Oil & Gas, Offshore, Ship Building/Repairs and Marine Services. This cooperation seeks to expand and develop business and strengthen the national maritime economy.
This potential cooperation is considered as reinforcement towards exploring the future of energy, production and export services, and the positive and attentive transformation taking place in the most important and largest economies in the Gulf region, specifically the UAE and Saudi Arabia. The countries in the Gulf region are planning to invest at least 140 billion dollars in oil and gas and petrochemicals projects in the next 10 years. This investment will be utilized towards the new oil and gas and transportation projects and to support the maritime operations, in order to meet the future growing demand for energy and oil derivatives and to increase the petrochemical production. It is clear that the national transformation programs and initiatives encourages the involvement of the national private sector in the maritime industrial and services sectors.
There are numbers of new and enormous projects in Abu Dhabi that aims at increasing the oil and gas production capacity supported by ADNOC’s innovative and advanced strategy to develop new and high-quality petrochemical products to meet with the increasing demand worldwide, and to increase refinery capacity to create new income resources. Moreover, ADNOC is planning to produce approximately triple the quantity of petrochemicals and high-quality products. This will be achieved by increasing the current oil production capacity of 4.5 million tons per year to 11.4 million tons per year by 2025. Furthermore, Saudi Arabia is planning to increase oil refining capacity from 2.9 million to 3.3 million barrels per day by 2020, as well as, developing and producing high-quality and efficient clean fuel, in addition to maintain the oil production level at 12.5 million barrel per day.
H. E. Khamis Juma Buamim, Board Member, Managing Director and Group CEO of Gulf Navigation Holding emphasized, “Our new strategy targets collaborating with the leading national companies in the UAE, in line with our wise leadership’s vision to establish a national maritime industrial cluster that will position the UAE amongst the world's most important maritime centers. We look forward to our potential strategic partnership with “Ali & Sons Marine Engineering”, that is considered as one of the leading oil and gas, and maritime service provider in this region. The entity has an excellent ship building and repair facilities, in addition to its advanced marine platform. We aim to jointly expand our current business activities in the maritime sector in order to secure maximum returns on our investments.”
Buamim further added, “Gulf Navigation Holding is an icon of success and determination. We are now taking a new step to enhance our expansion by exploring this potential partnership in oil and gas and maritime services with Ali & Sons Marine Engineering. This potential partnership will enable us to benefit from the promising opportunities ahead, especially that the volume of investments allocated by the Gulf regional countries to develop its offshore fields exceeds 40 billion dollars over the next ten years. We aim at having a share of these investments.”
Potential strategic partnership and a promising collaboration
Shamis Al Dhaheri, Board Member of Ali & Sons Holding highlighted the importance of this potential strategic partnership. He said, “After we have witnessed the outstanding financial performance of Gulf Navigation Holding over the past years, we have taken into consideration of their international network and expertise in the oil and gas, as well as, the maritime sectors, and taken a decision to inaugurate a potential partnership with them.”
Al Dhaheri added, “We, at Ali & Sons, always looking out for opportunities such as this where an entity such as Gulf Navigation could add value to our existing business to and enhance success. We believe that gathering the national companies’ capabilities is our guarantee to expand globally and to strengthen the UAE’s position as a key player in the oil and gas industry and the international maritime services.”
Gulf Navigation Holding is announcing this potential partnership with Ali & Sons Marine Engineering concurrently with the issuance of Sukuk according to the Islamic Law with a total value of 250 million dollars in order to finance its expansion plans, diversify its investments portfolio and upsurge profits. This step will position the maritime sector as one of the prime investments sectors that surpasses the traditional investment sectors such as, real estates and other services.
Significant Financial Results
According to the company’s latest financial reports, Gulf Navigation Holding has continued its steady financial performance improvement, with net profit reaching AED 12.4 million (US $ 3.4 million) in Q3 of 2017 compared to AED 10.2 million (US $ 2.8 million) in Q2 2017, at a growth rate of 21%.
Buamim clarified, "Gulf Navigation continues to maintain its robust position despite regional economic challenges. Our financial results reflect the strong growth of the maritime sector, which is one of the most important future sectors with a significant role in the sustainable development of the future and post-oil economy of Dubai and the UAE. We continue to focus on our strategic direction while monitoring and anticipating market variables. I want to emphasize that we always put our customers, partners and shareholders at the top of our priorities, supported by our knowledge of the market. We develop a portfolio of competitive services that maintain the company’s current and future readiness and leadership."