Gulf Finance House to create one of the largest cement companies in MENA region

In a deal with an estimated end value of $2bn, GFH will be collaborating with strategic partners including the Associated Group, Emirates Islamic Bank, Capcorp, and leading technical partners Holtec and China National Building Material Group Corporation (CNBM); all globally renowned and respected specialists within their fields. The project will comprise of multiple plants located across the MENA region. It is estimated that production will begin in 30 months, and the target is to supply 10% of the region's requirements in the future.

The tremendous growth in the MENA real estate sector, driven by huge numbers of private and governmental infrastructure projects, have created substantial demand for cement in the region. This, along with interest shown by European companies to secure supply into their markets from this region, are the principle factors behind GFH and its strategic partners' plan to create CEMENA.

The GCC alone consumes around 62 million tonnes per annum but over the next three to five years this figure is expected to increase by a projected value of 40%. To meet this demand CEMENA will operate multiple plants in the MENA region and is planning to enter seven initial markets (UAE, Bahrain, Syria, Jordan, Yemen, Oman and Libya), and in time, hopes to broaden its reach into other markets in the future.

GFH Chairman Esam Janahi commented today:

'There is a substantial wealth of opportunity in this marketplace. Accordingly, we have consolidated a team comprising of one of the biggest cement companies in the world, the cream of industry consultants and our own specialist teams to conceive this landmark project which answers the heavy demand in the GCC and MENA, but also offers our investors high returns on their equity.'

As a partner to GFH, Holtec Consulting Private Limited with its vast global experience, will take the responsibility of leading our technical advisory for project design and development. CNBM, which will also provide specialized technical support to CEMENA, is an EPC (engineering, procurement, construction) contractor, considered to be one of the leading experts in their field.

GFH has a reputation for innovation and initiatives that result in sector specific economic infrastructure initiatives, and CEMENA is set to reserve a proportion of its cement output for these projects, as well as GFH's partners' projects. The remaining cement output is expected to be channeled through Ready-mix providers and will feed the fast growing demand throughout the region and support the continuing construction boom.

H.E. Hamad Rashid Al Neaimi Chairman of Associated Group said, 'UAE is leading the region's construction and development boom and this trend will continue well into the future. The cement market presents clear and unequivocal opportunity across the MENA region and here we are sharing the same vision and strategy again with GFH in developing unique opportunities.'

EIB'S General Manager, Mr. Abdulla Showaiter said today, 'The shortage of cement supply in the region is well documented. The timing could not be better for the creation of CEMENA and we're proud to be working alongside GFH on a project that will inject critical new volumes into domestic markets and serve the huge growth in regional construction.'

Commenting on the initiative, Holtec Managing Director Mr. Sumant Shrivastava said, 'In CEMENA, we are delivering a bold solution to the challenges currently faced in the sourcing of cement in the region and in GFH, we have a seasoned partner with a reputation for intelligent innovation. We are proud to provide market leading technical knowledge to help make this a successful initiative '

CNBM Deputy Chairman Mr. Ma Jianguo said today, 'We are delighted to be working alongside GFH on an initiative that will create the first milestone for what will become one of the largest Cement companies in GCC and MENA region. We will leverage our global experience in this market to provide CEMENA the technical support required to deliver on its goals.'