Reem Investments, Al Ghanim Sons Group of Kuwait join hands to form automobile joint venture in UAE

The joint venture agreement was signed in Abu Dhabi by Mr. Abdulhamid Saeed, Managing Director of Reem Investments and Mr. Adel Alghanim, Chairman of Alghanim Sons Group of Kuwait.

Unveiling the details of the partnership and future plans, senior officials of Reem and ASG also announced that the joint venture has partnered with a leading commercial vehicle company in China, Shanghai Huizhong Automotive Manufacturing Company (SHAC), for heavy trucks and mini-buses targeted at the UAE market.

Commenting on the strategic diversification, Mr. Abdulhamid Saeed, Managing Director of Reem Investments, said: 'Reem Investments is committed to bringing to the UAE projects that will contribute to the growth of the national economy. The joint venture is also in line with our strategy to diversify our investments into growth-oriented sectors of the regional economy."

He said the joint venture will contribute to adding value to the economic diversification exercises under way in the UAE and will in turn help accelerate the development of the automotive manufacturing sector. "Apart from distributing SHAC trucks in the UAE, the joint venture is studying plans to assemble heavy commercial vehicles with a view of distribution in the Middle East," said Mr. Saeed.

In the first phase, the joint venture will focus on distribution of SHAC trucks which are built to the highest specifications to compete with the leading brands operating in the market. Initially, the company will operate through showrooms in Abu Dhabi and Dubai and three service centers covering the UAE. Subsequent phases will introduce buses, light commercial vehicles and passenger cars.

Speaking at the signing ceremony, Mr. Adel Alghanim, Chairman of Alghanim Sons Group said: 'The UAE joint venture is one of seven that ASG is establishing in the GCC, Iraq and Lebanon. We hope to further develop our relationship with Reem Investments to set up other Joint ventures in the region and internationally.'

SHAC is a subsidiary of SAIC Group which is already recognized as one of the largest manufacturers in China with over 33 per cent of the total market share. The company is also one of the leaders in quality manufacturing in China producing for Volkswagen, General Motors and Volvo products under license in China.

The Company's first products in the UAE will be the SHAC trucks, which come with components from renowned brands such as Cummins Engines, ZF transmissions and steering systems.