Hydra Properties acquires 20 per cent of RAK Cement

The company plans to increase its share by the end of 2007.

Describing RAK Cement as one of the leading cement producers in the regional market, Dr Sulaiman Al Fahim, Chief Executive Officer, Hydra Properties, said the emphasis is on acquiring shares in companies dealing in building materials as this is in line with the company's strategy for property development.

'Our vision is to expand Hydra Properties in a greater way and investing in the stock of Ras Al Khaimah Cement Company represents one such move in the right direction, as there is a great demand for the company's cement and other products with its sales charts indicating considerable growth and profits over the years.' he said.

The UAE is heading the construction industry in the GCC region with $35.6 billion worth of projects that comprise 63.7 per cent of the total development projects, according to a report by Abu Dhabi National Exhibitions.

'Ras Al Khaimah Cement Company produces the maximum amount of cement among the producing companies in the UAE, which are making continuous efforts to meet the demands of the massive, cement-hungry construction industry in the Emirates. Since Hydra Properties has many ongoing and planned construction developments in the UAE, holding a stake in Ras Al Khaimah Cement Company will also enable us to avail of cement supplies on a priority basis to meet our construction needs,'

Dr Al Fahim said.

The real estate development industry represents a key component of the UAE economy and Hydra Properties is transforming the UAE landscape by providing the latest concepts in state-of-the-art living that can be seen in some of the most prestigious residential and business developments in the UAE such as the Hydra Downtown Towers, Hydra Twin Towers, Hydra Towers, Hydra Golf Walk and Hydra Village, besides the Hydra Wave Resort coming up in Mexico.

Hydra Properties is utilizing its professional expertise to manage projects from end to end including land purchase, appointment of award-winning architects, execution and monitoring of projects with contractors and follow-up to final handover through processes and practices that are in line with world standards.

Cement production is one of the oldest manufacturing industries in the UAE with the emirate of Ras Al Khaimah starting in 1975 and continuing to be the major producer even today, besides Dubai, Sharjah, Al Ain, Fujairah, Ajman and Umm Al Qaiwain having their own factories. The UAE's booming construction industry, which includes numerous mega-projects, has led to demand for cement which is being met by imports from India, China, Iran and Egypt to supplement the supply from domestic production.

The UAE is set to become the GCC's largest producer of cement overcoming Saudi Arabia with expansion plans in the pipeline for increasing such plants and production lines. Last year, the UAE's cement production was 12.9 million tones and its consumption was 13.3 million tones. The construction sector in the region, is witnessing a huge demand for cement which is essential in this sector.

Ras Al Khaimah Cement Company is a public share-holding company that exports cement worldwide. The company uses prime quality raw materials available in Ras Al Khaimah for making cement and clinker through its state-of-the-art production equipment.