Sharjah Update Sharjah business & Investment News from Invest in Sharjah (Sharjah FDI Office)
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Sharjah Cement and Industrial Development Co. (SCIDC:ADX) has announced a 18.7% increase in sales revenue from AED 322.7 million (US$ 88m) in H1 2013 to AED 383.1 million (US$ 104m) in H1 2014 with a 135% increase on net profit for the first half of 2014, compared with the same period last year. The company attributed the rise in turnover to an increase in product exports and the larger AED 31 million (US$ 8.5m) net profit mainly to growing income from its investments.
The cement industry has long been considered a barometer for construction activity and the buoyant UAE construction market seems likely to continue to support future cement revenues. Export markets such as Yemen, Iraq and North Africa have also proved lucrative in recent years. The UAE has become largely self-sufficient in cement and although pricing has remained stable due to agreement between producers and the construction industry, some expect new pressure on prices due to increased demand and rising operational costs.
Locally produced cement has been readily available in the emirates at prices about AED 250 (US$ 68) a tonne. However, the UAE’s real estate sector has shown strong growth over the past 18 months and new mega-projects announced across the emirates and construction associated with the 2020 World Expo in Dubai could increase local demand.
According to Meed analysts, Sharjah alone could award up to AED 11 billion (US$3 billion) of construction projects by the end of this year and a further US$6 billion worth of construction projects are expected to be awarded by 2018.
Sharjah Cement and Industrial Development Co. was established in 1976 and currently owns and operates a cement factory manufacturing three different types of cement, plus a paper sacks factory. Additionally, the company owns 51.2% of a rope factory. The company listed on the Abu Dhabi Securities Exchange (ADX) in July 2005 and today there are eight UAE cement companies in total registered on the Abu Dhabi bourse.
Source: SCIDC, ADX, UAE media
