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Senaat General Holding Corporation Profit Up 20% in First Six Months

By admin on September 29, 2015

Abu Dhabi government owned industrial group, Senaat General Holding Corporation, saw a 20% increase in net profit in the first half of 2015, reaching Dh453 million. Earnings prior to interest, tax and depreciation exceeded Dh1 billion, rising 18% from the same period last year. In the first half of this year, Senaat’s revenues stood at Dh6.8 billion, showing a 2.5% increase from Dh6.6 billion the same time last year.

Senaat chairman, Hussain al Nowais, stated that the company has a number of investment plans and projects in the works to expand Abu Dhabi’s industrial base and increase the contribution of the non-oil industrial sector in the emirate’s domestic product.

“Senaat will continue to seed its own investments through using its own profits and through a prudent approach to debt which is supported by the confidence of financial institutions in the company’s ability to fulfil its future obligations,” said Nowais.

Senaat re-invests its profits to expand its current companies and establish new projects as it continues to grow its portfolio of companies. The company established Al Gharbia Pipe Company with two of Japan’s top companies in the steel industry earlier this year. Al Nowais expects the company to continue on its growth.

“All success factors are available for Senaat to continue to grow and perform well. It has the financial strength, qualified and competent Emirati management team and a clear investment vision. I am confident that Senaat will continue to successfully deliver on the government’s vision and contribute to its diversification efforts,” said Al Nowais.

The industrial group’s portfolio includes Emirates Steel (ES), National Petroleum Construction Company (Npcc), Arkan Building Materials Co, Agthia, Al Foah and Ducab as well as two companies under development; Taweelah Aluminium Extrusion Company (Talex) and Al Gharbia Pipe Company.

Senaat is a leading contributor to Abu Dhabi’s Economic Vision 2030, a comprehensive plan to achieve economic development in Abu Dhabi. It manages over Dh26.8 billion of industrial assets and employs more than 19,500 people.

 

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Challenges Facing Workers in the 21st Century

By admin on July 06, 2015

The requirements for being a part of the workforce and navigating it throughout our working lives have increased substantially in the last fifty years.  The increase in requirements have changed for a number of reasons: technology, globalization and the rising demand for more goods.  Technology may be one of the largest factors, what required workers 30-40 years ago, now can be done with computer programmed machines.  The machines and computer processes have eliminated a large number of jobs and as technology continues to improve it is likely that more manual labor jobs will be eliminated.

Another challenge of the modern day workspace is how rapidly techniques and processes are changing.  Many processes and skills in the workplace used to last workers a lifetime or close to it.   Nowadays, a set of skills may last a worker at most ten years, and the need to be reinventing yourself or learning new skills is now omnipresent.  For workers in this era, it can feel exhausting and challenging because of the need to always learn new skills.  Working at one company for a long time is also very likely today.  Adults in their 20s and early 30s are likely to have five jobs; whereas their parents probably had no more than two or three jobs.

The next challenge workers face in the modern economy is globalization and competition from abroad.  There are no longer only a few countries with enough education and technology to be the industrial hubs of the world.  Most countries which want to develop a manufacturing sector, or an IT sector or anything else need to simply put their mind to it and it can be achieved.  This has made keeping educated and capable workers in a country far more important now than ever before.  In Saudi Arabia and other Middle Eastern countries a brain drain of female talent has been happening for some time because of the discrimination against women in the workplace.

This is changing though because of women like Su-ad Yousif, Bodour Al Tamimi and Laila Al Hassan.   They came together to form the group Qyiadiyat in Saudi Arabia as a platform for career oriented women to network with.  They have used the group to network with business leaders like Hussain Al Nowais and many others to help bring attention to themselves and their abilities.  As views in Saudi Arabia continue to change, more women are slowly finding their way into the workplace.  This is good for Saudi Arabia because they will lose less high educated and ambitious women to jobs overseas which is damaging to their economy.

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A Smashing Start for Q1 of 2015

By admin on June 04, 2015

While the world economy is still proving to be sluggish overall and many companies are struggling, there are some which seem to have hammered out the rails to success.  Many countries have begun quantitative easing into the market and have made it difficult for investment companies to do well because of uncertainties in the market.  However, Waha Capital has seen their first quarter profits up a smashing 20% to Dh 182.2m.  Compared to the same time last year this is more than a 20% increase for the same period of time.

A majority of these profits came from the Waha Capital’s shares in the New York-listed company AerCap Holdings which acquired International Lease Finance Corporation (ILFC) in mid-2014.  However, Hussain Al Nowais insists in a press statement “the financial results recorded during this quarter demonstrate Waha Capital’s stature as a successful investment company rooted in Abu Dhabi, with a strong portfolio of regional and global investments.  We have demonstrated sustained profitability through the strong performance of our diversified portfolio of direct investments.”  Some of the other investments the company holds are in areas such as education, health and oil services.

Despite Waha Capital’s positive gains last year and so far for the first quarter of this year their stock price has lagged behind in the market.  The stock is still trading at a discounted price in most places.  Analysts believe this is due to hesitation with investors not having a comprehensive understanding of Waha Capital’s investment portfolio.  They are seeing the major gains coming from AerCap Holdings and feel the company’s fortune is entirely reliant on that one stock, so if Aercap Holdings goes down so will Waha Capital.  If an investor takes the time though to inspect Waha Capital’s other investments they will see that most of them are also showing good growth.

Shareholders for the company once again approved a cash dividend distribution of .3 Dh per share which is a 140% increase from last year.  Hussain Al Nowais is looking forward to very positive gains during the next three quarters and it seems like now is the right time for investors to buy in on the company because of the market lagging behind on the price of Waha Capital’s stock.  Besides Waha Capital, Dunia Finance, Anglo Arabian Healthcare and National Petroleum Services also saw major gains in their businesses during the first quarter.  Overall it appears as though business in the UAE is doing extremely well.

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Khalifa Fund Activates $200M Egyptian Loan

By admin on May 07, 2015

Late last year, The Khalifa Fund for Enterprise Development announced plans to extend a $200 million loan to Egypt which was proposed to help their economy overcome their troublesome financial decline. That proposal has transitioned into reality as the loan has been activated for the government in Egypt to use. The loan activation stems just mere weeks after Egypt hosted a conference titled Egypt The Future which invited investors from outside nations to seek financial benefits of funding various aspects of Egypt’s economy.

Chairman of Khalifa Fund for Enterprise Development, Hussain Al Nowais, says the loan for Egypt is a representation of the United Arab Emirates keenness of leadership and how deepening the relationship with Egypt can be beneficial for both countries. The loan will be a part of microfinance programs that will be responsible for creating 100,000 projects, job opportunities that could reach up to 200,000 and enhance workforce skills by the year 2020.

While the funds of the loan trickle through Egypt’s economy, Egyptian citizens may see a better quality of life as a domino-effect of positivity sweeps through the nation. With over 60% of the population living below the poverty line due to high unemployment, the economic climate of Egypt may be on the upswing during the next few years of financial stimulus. With additional investments coming from different firms, Egypt’s economy may make a turn for the better and some loans are featuring attractive repayment plans that can lessen economic hardship in the near future with grace periods.

Hussain Al Nowais also stated that the loan will be directed towards remote and disadvantaged areas trough Egypt to improve those pockets of poverty. It will also assist women in rural areas looking for work and will give them resources to emerge as executives in the workplace.

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Paving The Way For Egypt’s Financial Future

By admin on April 10, 2015

Egypt has been under economic hardships for the past few years with struggles that include a 60% population below the poverty line, a high unemployment rate and years of economic stagnation. However, there is a silver lining that may change the future of Egypt and that involves the attraction of $60 billion in foreign investments over the next four years.

Despite the unforeseen risk from outside investors, the Egyptian president, Abdel Fattah El Sisi, believes that the financial help from other nations will be beneficial to all parties involved. Investors from all over were invited to attend the Egypt The Future conference, in the Red Sea Resort located in Sharm El Sheikh, where it was the chance for the country to deliver the assurance that risk is under control and investment opportunities are plentiful and worth it.

So far, Egypt has already received billions of dollars in aid from the UAE to help fund the country which have gone to good use thus far. Of the investors from the UAE, the Abu Dhabi-based conglomerate, Senaat, is expected to be the key player and highlight of current projects being promoted at the conference. Hussain al Nowais who is the chairman of Senaat stated that the support from the UAE to Egypt shows other country’s investors that the relationship between the two countries is a strategic and smart move.

Of some of the initiatives and agreements already in the works include a $200 million loan to be dispersed to Egypt from the UAE-based company Khalifa Fund for Enterprise Development. The new loan is targeted to reduce poverty, create job opportunities in upwards of 200,000 positions and help women in the country develop entrepreneurial skills. As economic investment opportunities continue to present themselves for Egypt, the entire country may be able to overcome past economic downfalls and emerge as a global player in the worldwide economy.

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Egypt Receives $200 Million Loan

By admin on April 09, 2015

Egypt may be home to the Great Pyramids but many on the outside do not know it’s stricken by poverty, high unemployment rates and slim business opportunities for women. However, a new $200 million loan may be able to turn the nation around and positively change the current financial hardships. Khalifa Fund for Enterprise Development, based in Abu Dhabi, has announced a $200 million loan agreement that will focus on the development of the microfinance sector in Egypt.

The loan is aimed to promote entrepreneurship opportunities for women, bolster enterprises and reduce poverty. Chairman of Khalifa Fund, Hussain al Nowais, hopes the loan can help Egypt’s government economically support their citizens with better opportunities which could lead to a plethora of benefits. When the loan is dispersed, it’s estimated to create over 200,000 enterprises as well as open up more than 200,000 jobs for Egyptian citizens.

Hussain al Nowais discussed ways the loan can be efficiently implemented into various projects with the Secretary-General of the Egyptian Social Fund development, Suha Suleiman. To achieve the ideal results, the Egyptian government must focus on strengthening the economy with new enterprises that will translate into thousands of job opportunities. Additionally, the loan is segmented to help women entrepreneurs find success in the business world where 25% of the loan will be dedicated solely towards women and the remaining amount will be used between other enterprises for both men and women.

As it stands now in Egypt, 60% of the citizens are below the poverty line and the loan may help alleviate the struggles within the country because jobs will become available to support better lifestyles. In addition to the loan from Khalifa fund, other UAE and international companies have signed other deals with Egypt to help the Egyptian economy improve. One deal includes a $2 billion investment that would be used towards health, money exchange, renewable energy and waste management sectors.

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Khalifa Fund: Creating a Stronger System for Emirati Innovators

By admin on March 03, 2015
Khalifa Fund: Creating a Stronger System for Emirati Innovators

The UAE has established itself as one of the global financial hubs and is in the midst of major economic development as it continues to industrialize and innovate.  The Khalifa Fund for the Enterprise Department has begun discussing methods of helping small and medium sized enterprises (SMEs).  Right now, the leading idea is an incubator program to help Emirati innovators receive the financial support needed to give them the resources to develop their ideas.

Chairman of the fund, Hussain al Nowais, believes the development of SMEs across the UAE is important to the economic future and stability of the country.  He commented on the fund saying “The fun is currently working on developing a vision for those incubators and the mechanism of action, the services and facilities to be provided by the beneficiaries’ sectors including finance”.  The Khalifa Fund is also in the midst of discussions with other potential partners from the investment and education sectors.

Innovation concept_shutterstock_165062033

Currently the fund is developing digital services that will allow interested in entrepreneurs to electronically submit their projects.  The aim is for this service to be completed by next year.  The incentives being offered to Emirati owners of SMEs will not just come from the fund though, the Federal Law #2 which was approved by Sheikh Khalifa, President of the UAE last year has provisions for providing funding.  As it stands only about 3% of the government’s overall loans go to SMEs which is startlingly low, but is set to increase in the coming years.

Hussain al Nowais has discussed how important SMEs are important to the UAE; they provide roughly 86% of the jobs in the private sector.   The current belief in the UAE is that the total contribution to the economy of SMEs will rise form 60% to 70% by 2020.  This is a large increase in the next five years which means providing them with better financial support is critical.  If the incubator program is able to go into effect many SME entrepreneurs will have a higher chance of success.

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Challenges and Opportunities Facing the World Economy: GFMF 2015 Discussion

By admin on March 02, 2015
Challenges and Opportunities Facing the World Economy: GFMF 2015 Discussion

The world economy is rapidly evolving every year – each year seems to hold unexpected surprises that need to be overcome.  This year the Seventh Global Financial Markets Forum (GFMF) will be held in Abu Dhabi and organized by the National Bank of Abu Dhabi (NBAD).  The purpose of this forum is to discuss challenges and opportunities on the near horizon that face the world economy and see the perspectives of those who are regulators, bankers, politicians and other high level leaders.

GFMF conference

2014 GFMF conference, source: https://www.gfmf-nbad.com/cms/Images/gallery/2014/1/_1DX5387.jpg

The conference will run from March 1st-2nd and is expected to draw over 1,300 attendees.  The inaugural address will be given by the Abu Dhabi Department of Energy and Chairman of NBAD, H.E. Nassar Ahmed Alsowaidi.  The forum will be filled with numerous high profile financial, political and social leaders throughout the two days giving speeches covering challenges and opportunities they foresee.  The first day’s keynote speakers include H.E. Hussain al Nowais who will give his views and ideas about “Industrialization in the UAE”; H.E. Sheikh NahayanMabarak Al-Nahayan – UAE Minister of Culture, Youth and Social Development; General Colin L. Powell and many more.  Needless to say, this forum will have an excellent group of speakers with a large amount of diversity in their backgrounds and experiences.

This diversity and wealth of knowledge which accumulates here once per year is what has earned the NBAD Global Financial Markets Forum the prestige of many.  It is rare that so many of the world’s most influential decision-makers and thinkers come together to discuss as one group.  After this forum in March there will be another event held in Mumbai, India in June 2015.

The top five important industry sectors to the GFMF are financial institutions, energy, aviation and transportation, real estate and family conglomerates, and retailers.  The goal of the Global Financial Markets series is to create a continuous discussion about these markets and how to improve them.  This is why high profile thinkers and leaders such as Hussain al Nowais are coming to the UAE in March to have these discussions.  The 1st day’s panel discussions cover “Vision Abu Dhabi 2030”, “the role of Asia within the West-East Corridor” and much more.  Some of the panels’ speakers include Waleed Al Mokarrab Al Muhairi – Deputy roup CEO of Mubadala Development Company; Mark Schwartz – Vice Chairman of the Goldman Sachs Group Inc. and Nizar M. Al-Adsani – CEO of Kuwait Petroleum Corporation.

The second day will include discussions on “Sovereign Wealth Funds’ view on the world today”, “global asset manager and allocators” and more.  These will generally include managers, bankers, investors and thought leaders looking to collaborate and further discuss how to tackle coming challenges and opportunities for countries that are industrializing.  A couple of the speakers will be H.E. Mubarak Al Mansoori, Governor of the Central Bank of UAE and Sir Paul tucker – Former Deputy Governor of the Bank of England.  The continued gathering of such an impressive array of leading thinkers and leaders in Abu Dhabi not only cements it as a global financial hub but cements the importance and power of the GFMF.

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Why Egypt’s Energy Industry Has Much to Look Forward to In Coming Years

By admin on January 26, 2015
Why Egypt’s Energy Industry Has Much to Look Forward to In Coming Years

The early fall 2014 announcement that an Abu Dhabi private investment firm, Al Nowais Investments, had finalized plans for the development of coal-fired power plants in the Suez Canal region was the type of news that many Egyptians had long been awaiting. Egypt, which has suffered chronic energy shortages since the aftermath of its recent political upheaval, has made no secret of its dire need for additional power sources.

According to a Reuters report, Al Nowais Investments, owned and chaired by Hussain al Nowais, is the lead developer of the two coal-fired power plants, the final cost of which has not been determined. Coal for the plant, which will be constructed in the coming years, will be sourced from various international locations including Indonesia and South Africa.

hussain al nowais

Al Nowais Investments’ move into the Egyptian energy industry is notable for a number of reasons, the first of which is its role as one of the first private investors in the nation’s energy supply. The shortage in power explains why the country decided to open up opportunities to private investors. Al Nowais noted that he was eager to be one of the first investors to take Egypt up on its offer for private investments in energy, a trend in energy that is gaining traction around the world. Al Nowais Investments’ arrival could also help aid efforts to modernize the nation’s significantly inadequate power grid, which Reuters estimates will ultimately cost approximately $5 billion to fully overhaul. This largely dysfunctional grid is lacking in large capacity reserves and is supported by 51 aging gas-fired power stations, 25 percent of which are over 20 years old. Al Nowais Investments could be just the commitment the country needs to realign its energy initiatives and re-emerge as a stable Middle Eastern economic power.

Why else does this new activity in the Egyptian energy sector matter? Energy has recently been a significant cause of public dissent. For the first time in decades, power outages have been common across the nation, most prolifically during the summer of 2014. A private entity’s willingness to claim a stake in the Egyptian energy industry is also significant for both its unexpectedness and its potential to persuade additional investors to join on. Egyptians currently pay between 1 and 7 cents per kilowatt hour, while Americans pay between 7 and 38 cents for this same amount of electricity, according to Reuters. The minimal return on investments a private supplier would gain from an Egyptian customer base has therefore long been a deterrent to investors, but now those like Al Nowais hope that the commitment of just one entity to this region will be the catalyst needed for others to jump on board, and ultimately raise prices over time.

While the current landscape of Egypt’s energy industry is far from sufficient, the announcement of Al Nowais Investments’ plans for new power plants have left many hopeful that there’s a much brighter future to come.

 

 

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