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11 February 2006
DEPA United Group eyes a global top 20 rank by year-end Dubai – Institutional and individual investors have joined hands to set up a regional contracting interior giant to tap a thriving industry home and abroad.
The Dubai-based DEPA United Group (DUG) PrJSC has raised a total capital of Dh475m from selected investment houses and high-net-worth individual investors.
The first general assembly and board meeting of the new company was held Wednesday 8 February at Al Bustan Rotana Hotel in Dubai.
“The very well received offering was oversubscribed and we are happy with such a warm response,” said Mr. Abdulla Al Mazroui, Chairman, DUG. The National Investor was the financial advisor and lead manager for the offering which attracted some major stake holders including Emaar Industrial and Investment Co., Al Futtaim Capital and Global Investment House as well as many other blue-chip investors from UAE, Saudi Arabia and other GCC countries.
“DUG is the largest interior contractor in the Middle East, North Africa and South East Asia cashing in on the positive economic growth backed by higher oil prices and rising public spending”, says Mr. Marwan Shehadeh, Managing Director, Al Futtaim Capital in Dubai, UAE. “The construction boom in this region as well, plus growing demand for hotel rooms boosted by inbound traffic are sound fundamentals for our growth projections.”
Driven by huge demand on interior work solutions in the region, DUG plans to earn Dh800m in revenues by year-end which places it at top 20 specialist contractors globally.
Recent reports indicated that construction investments in the GCC alone could exceed US$300bn by 2015.
In addition to the core activities, DUG’s growth strategy focuses on a matrix of acquisitions and business alliances during 2006.
“The strategy of Depa United Group is to expand vertically and by backward integration through acquisitions or partnerships capturing a large part of the value chain. Additionally, we will look at horizontal expansion by introducing new interior services,” explains Mr. Mohannad Sweid, CEO, DUG. According to Mr. Sweid, DUG plans to set up and acquire over 20 new companies this year, adding that the construction boom in the region lays down for the industry a solid base to achieve sustained growth.
On DUG’s acquisition radar screen is Depa Interiors with its subsidiaries Mivan Depa, Pino Meroni Yacht Interiors, El Diar and Deco. “This acquisition will give DUG immediate access to regional and global markets from Morocco on the Atlantic to China” says Ms. Maha Al Ghanem, CEO, Global Investment House Co. of Kuwait.
“Our acquisition strategy would help DUG leverage its value proposition as the foremost interior player in the region with a prestigious and flying- colours track record,” noted Mr. Orhan Osmansoy CEO of The National Investor Abu Dhabi.
NOTE TO EDITOR
DEPA is an Interior Contracting company specializing in full scope fit-out and furnishing of five star luxury hotels and facilities. DEPA’s main office is in Dubai with branches in Abu Dhabi, Doha, Cairo, Casablanca, Khartoum, Jeddah, Milan and Shanghai, Our site offices are in various cities of the Middle East & North Africa. Our network allows our clients to benefit from the knowledge, organizational ability, purchasing power and facilities it provides.
Some of DEPA’s references in UAE are: Burj Al Arab, Emirates Palace Hotel, Jumeirah Beach Hotel, Ritz Carlton, Grand Hyatt, Rotana, Fairmont, Sheraton and Hilton. In Egypt: Four Seasons Sharm, Four Seasons Nile Plaza, Four Seasons San Stefano, J.W. Marriott Cairo, Sheraton Alexandria, Hilton Luxor, and Crown Plaza Sharm. In other areas: Four Seasons Doha, Sheraton Bahrain, Grand Hyatt Muscat, Sheraton Amman, Le Royal Amman, Hyatt Casablanca, Radisson SAS Cannes, Ledra Marriott Athens, Radisson Parkway Orlando, Hilton Osaka among others. After three decades of prestigious Interiors accomplishments DEPA continues to present magnificent achievements in turnkey interiors of luxury Hotels and Yachts, and has developed professional customized services for financing and products leasing that allow clients to benefit from extended financial facilities.