UAE construction sector back on track |
Gulf Today - 21 July, 2012
The UAE-based Danube Group has recorded growth in sales for the first two quarters of the fiscal year 2012 following the steady growth in the construction industry and continued focus on expansion projects in the emirates.
Speaking to The Gulf Today, Founder & Chairman of the Danube Group, Rizwan Sajan disclosed that the beginning of 2012 has been a landmark year for the company, adding that expansion has not only strengthened their market presence in the region, but has also helped reach a wider audience.
Growth and demand for products in the Middle East and African markets has seen the company achieve a 20 per cent increase in sales.
The company is in excellent position to meet its target for the annual year with record volumes and sound profitability', said Rizwan.
'Our 20 per cent growth in sales, which reflects a year on year increase in growth, has also allowed us to expect higher sales for the end of 2012. Danube, as a company remains steadfast in meeting the requirements of growing customers and stake holders and will continue to live up to our reputation of being providers of world-class materials', he added.
Danube has a large presence in the UAE and sees impending growth across the Middle East region including areas such as Qatar, Bahrain, Oman and Saudi Arabia. To keep pace with the emerging market trends, the company continues to explore investment opportunities in untapped markets such as Africa.
The leading retail facility has been a major force in generating sales growth for the company indicating a share of 32 per cent in total sales for the first half of 2012. To date, there are 35 Danube Building Materials and Buildmart showrooms. The company also maintains procurement offices in Canada and China.
Speaking at the start of Ramadan on Thursday evening, Anis Sajan, Managing Director of Danube Group stated that UAE real estate sector is back on track with several companies reviving their projects while others were setting up new infrastructure.
With its strong cash position, Danube Group is well poised for a growth of 25 per cent for the next two quarters of 2012, explains Anis.
According to a statistics report released by Danube, the company maintained a constant price trend in the last few years.
However, the raw material and ocean freight charges were abnormally high this year which led to the increase on landing cost. This in a way added pressure to the profit margins thereby resulting in a price rise.
However, the prices would stabilize soon as the freight costs are expected to fall down in the coming three months.
Also, industrial reports indicate that the UAE’s construction industry will mark a growth of around 20 per cent from 2010 to 2013.
The expected growth is driven in by the continuous increase of strategic construction activities and infrastructure development. In line with this, Danube has expressed confidence in playing a major role by leveraging its diverse portfolio of construction and building materials across these major ongoing projects.
In line with this, Danube will continue to open more outlets and create a stronger market presence not only in the Middle East but also across the global market. Danube will open 20 new showrooms by next year across UAE, Oman, Qatar, Saudi Arabia and Africa.
The first half of this year saw the opening of three new Danube showrooms in key locations that include Saudi Arabia, Abu Dhabi and Al Ain. The increased demand for its products coupled with its expansion has resulted in the company growing its workforce since its inception, to 1700 people.
Since its establishment in 1993, Danube has been promoting community initiatives. Recently, Danube partnered with the Association of Professional Interior Designers (APID), to discover and promote the talent of emerging interior designers. The competition was developed as an adjunct to typical course work, where students could utilize skills learned through their current academic development, in the design of an interior environment with far-reaching appeal.
Danube’s growth in sales can be attributed to its provision of world class high quality building materials and home interiors combined with great value and special services. The company's dedicated focus on establishing facilities in high potential locations, has made it a major hit with the customers.
Rizwan was awarded ‘Visionary of the Year’ at the first CEO Awards held earlier this year.
He has also been recognised as one of the top 25 ‘Young Asian Achievers’ in the UAE and was presented with a plaque of recognition by Abdul Rahman Saif Al Ghurair, Chairman of Dubai Chamber of Commerce and Industry (DCCI).
He has also been recognized as the ‘Most Admired Retail Professional of the Year 2011’ by Images Retail ME Awards for his dynamic leadership and his important contributions towards UAE’s continued growth and development.
Danube, which started as a building materials supplier 19 years ago, has also found success with its introduction of a one-stop-shop concept called Danube Buildmart’ for home interiors. The outlets target a diverse retail segment ranging from developers to architects, interior designers to home owners.
'We are pleased that our strong belief in the potential of the UAE market is rewarded by the positive developments and growth in sales. The continuous year on year growth encourages us to expand our operations and leverage upcoming opportunities in other markets around the world”, concluded Rizwan.