Fakhruddin Group becomes Holding Company

The decision was welcomed by the boards of all the companies in the group.

Making the announcement, Fakhruddin Holdings Chairman, Mr. Akbar Fakhruddin, said:

"This development has been two years in the planning. During this time our company has undergone tremendous change in terms of culture and values. This restructuring has created renewed synergy and efficiency, and has seen us specialize in, and diversify, our core services in an effort to stay one step ahead of changing global markets."

"Taking the leap to becoming a holding company is a reflection of our vision, it is a move that will strengthen our business, and it is the result of our vast experience spanning 45 years across various economic fields," he added

The announcement comes at a time when markets globally are struggling with the negative effects of the economic slowdown. The UAE's economy, however, continues to grow vigorously. In fact, the country's economy has ranked 17th - with a percentage of 62.8% - on the Economic Freedom Index, a system which uses data-driven equations to grade countries in an unbiased way in terms of economic freedom.

The Economic Freedom Index covers the economical activities for 126 countries by measuring 10 types of freedoms, including trade freedom, business freedom, investment freedom, and property rights. Some of the areas in which the UAE scored extremely high include fiscal freedom - 99.9%; freedom from government - 80.2%; freedom from corruption - 62%; and labor freedom - 76.2%. Essentially, this indicates that there is no individual income or corporate tax at the federal level, and that the labor market is highly flexible. Furthermore, the level of corruption is admirably low for a developing nation.

Akbar Fakhruddin said, "The UAE scored above the world average in terms of fiscal freedom, labor freedom, freedom from corruption, government size, and trade freedom, thus surpassing a lot of industrial countries. In addition, the UAE's economy is gradually growing, in spite of the global financial crisis. Since our inception 45 years ago, our aim has been to maintain our status as a self-financed family business. It is because of our beliefs, our deep-rooted ties in the country, and the favorable economic climate of the UAE - as proved by the country's ranking - that we have been able to expand to this extent. We now have to seize all opportunities for the formation of major partnerships to ensure expansion and consistency in the market."

The list of companies intending to join Fakhruddin Holding includes Hamidi, Premier Cosmetics, Premier Plastics, as well as four general trade companies and three industrial companies, including Al Wared, Mulla Fakhruddin Ibrahim and Partners, Fakhruddin Gifts and Novelties and Fakhruddin General Trading. In addition, four companies working in the fields of management, investment and development in the property sector, including Fakhruddin Real Estate Development, Fakhruddin Real Estate Management and Fakhruddin Properties, will form part of this new venture.

Akbar Fakhruddin concluded, "Our progression into a holding company can be largely attributed to the vision of H.H Sheikh Mohammed, who has not only encouraged increased transparency, but who has also allowed our company to flourish and fulfill its ambition."