ADSB and Drydocks World sign agreement

12/01/2016 05:53 AST

Abu Dhabi Ship Building has struck an initial agreement with Dubai’s Drydocks World to work together on maritime projects.

The Abu Dhabi-based marine services company said the memorandum of understanding paved the way for the creation of “an industrial entity to strengthen maritime projects in the UAE and across the GCC”.

A Drydocks World spokeswoman said the main intention of the agreement was cooperation on maritime projects, without elaborating further.

ADSB did not respond to requests for comment. The agreement between the pair aims to “enhance knowledge transfer and capabilities exchange between the two companies” and provide “the basis for future cooperation”.

It comes as Drydocks World attempts to break a stalemate in talks to restructure about US$2.3 billion worth of debt. ADSB was formed in 1995 to provide repair and refitting services for the UAE Navy, but has expanded its service offering to commercial vessels.

The company signed an agreement with France’s Thales last year for the provision of maintenance services for GCC naval vessels.

ADSB is 40 per cent owned by Abu Dhabi’s strategic investment company Mubadala and 10 per cent by the government of Abu Dhabi, with the remaining 50 per cent publicly traded on the Abu Dhabi stock exchange.

It posted net income of Dh96.2 million for the first nine months of last year compared with a Dh53m loss in the same period for 2014, thanks to growth in its naval ship building segment. The company’s shares closed down 3.33 per cent on Monday at Dh2.90.

The National