UAE group Arkan approves 49pc foreign ownership

24/10/2016 05:39 AST

UAE-based Arkan Building Materials Company said it has won approval from the board of directors to open up its share register to foreign ownership.

A leading construction materials company, Arkan was established in 2005. It is 51 per cent owned by General Holding Corporation (Senaat), an entity wholly-owned by the Abu Dhabi government to promote sustainable industrial activity in the emirate.

The announcement comes following the company's general assembly, where the board endorsed the decision and amended its Articles of Association to reflect the necessary changes.

Starting from tomorrow, non-Emirati nationals will be able to buy up to 49 per cent of Arkan's 1.75 billion ordinary shares, said a company statement.

Arkan's portfolio companies include Emirates Cement Factory, Emirates Blocks Factories, Anabeeb and Al Ain Cement Factory. The company is also developing Arkan Dry Mortar, a high-capacity dry mortar plant located in Al Mafraq, which will produce a range of dry mix products.

Prior to this decision, the company's ordinary shares listed on the Abu Dhabi Securities Market (ADX) were held solely by UAE nationals. Arkan chairman Jamal Salem Al Dhaheri dubbed it as an important moment in the development of the business.

"We want to encourage greater liquidity in the shares and open to a broader set of investors looking for access to the development of Abu Dhabi and the UAE. Arkan has been instrumental in that development, producing materials for some of the highest profile nation-building projects," he remarked.

"At the same time we are focused on increasing our exports of specialist construction products," he added.

Arkan reported its first half results ending June 30, 2016 with revenues at Dh411 million and a net profit of Dh40 million. Operating margin was 25 per cent and the company had Dh67 million in cash and cash equivalent.

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