Emaar Industries and Investments partners with Damas in AED 1billion jewellery-making venture

The joint venture between EII and Damas, announced at a ceremony in Dubai earlier today, paves the way for regional jewellery manufacturing to become a mainstream multi-billion dollar industry with UAE at its heart.

Board members and senior executives from both companies met at the Park Hyatt hotel to seal the partnership and announce the new venture. EII's delegation, led by Vice Chairman Mohammed Ali Al Hashemi and Chief Executive Dr. Ahmad Khayyat, confirmed the terms and the structure with Mr. Tawhid Abdullah, the Managing Director of Damas.

The new company, Emirates Jewellery Manufacturing Company which is scheduled to start operations in July 2007, out of a 110,000 sq feet state-of-the art facility in the Dubai Multi Commodities Centre, will become the single biggest jewellery manufacturer in the country and provide a base for the development and expansion of the industry.

The company's five-member Board will include two directors from EII and two from Damas in addition to a fifth independent board member mutually agreed upon by both companies. It will consolidate local production for Damas's retail network into one 'super' facility, from the previous eight operations scattered around the country. Turnover is expected to mount to AED 1 billion within its first five to six years of operations.

Speaking at the official announcement ceremony, Dr. Khayyat said: "This agreement marks a pivotal leap in the development of this industry in the region. It will stand out as a model for our business, especially since it reflects EII's strategy of building a portfolio of premium manufacturing businesses that can draw on local expertise to expand across borders and become regional players."

"Our expectations are high for both the gold industry and this venture. This partnership - capitalizing on our manufacturing 'know-how' and the strength of our partner's retail brand - will help the industry realize its potential and provide a significant boost for the 'Made in UAE' label we are so keen to see become established as a quality marque."

Damas' blend of retail and marketing 'know-how' and the access it provides to buoyant local, regional and international markets, will offer a sound foundation for the venture. A full range of fashion jewellery, from individual diamond and gold collections to more generic pieces, will be produced for a network that stretches from the GCC through North Africa, the Arab countries and the Indian Subcontinent to the UK.

Mr. Abdullah said: "This joint venture company signals an important step forward for Damas and our participation in the "Made in UAE" initiative that is poised to become an important marketing dynamic for Damas. We believe jewellery produced by the new company will compete effectively against the top manufacturers in the sector and will become established even at the most luxurious end of the market.

"We expect that initially 50 per cent of output from the new facility will remain within the UAE part of our retail network while the remaining 50 per cent will go to our international outlets. Production from the new facility will extend the overall market and offer new options and a raised profile for the industry. The potential is tremendous."

According to the Dubai Multi Commodities Centre (DMCC), gold trade in Dubai rose by 37 per cent to reach USD 14.75 billion in 2006 compared to USD 10.73 billion in 2005. The significant amount of gold traded through Dubai with prices at historic highs, fully reflects Dubai's role as a gold centre within the region. Whereas, Dubai's gold industry sales rose by 5 per cent in 2006 as a result of a booming tourism sector.

The partnership between EII and the Dubai-based niche retailer offers a template for regional growth and expansion that is increasingly being rolled out by Emaar Industries and Investments. Mr. Al Hashemi said: "We invest in manufacturing businesses that have growth potential, regionally-based, sustainable, clean, offer exceptional value to our stakeholders and partners, and are of benefit to our community. This partnership meets these requirements on every count."

"This joint venture is in line with the vision of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai to establish manufacturing in the UAE as a primary activity. Initiatives such as this have a key role to play in transforming and diversifying the local economy. First, it highlights the UAE's increasing importance as a manufacturer of high quality items and not solely as an importer of goods.

'Second, there are social consequences and benefits from this venture for our people in terms of opportunities, employment and openings for new talent. We will not only be employing some four hundred people at this manufacturing facility, we will also work on enhancing the skills of UAE Nationals through the comprehensive training and development programme that will be offered."