The fortunes of this international access-control company are inextricably tied to the construction sector in the MENA region. Zawya interviews Dorma's regional sales director, Nassim Abu Yousef, for insight.
The Middle East and North Africa construction sector has witnessed a divergence in fortunes in the wake of the global financial crisis, with the focus shifting to new growth markets. Zawya spoke to Dorma, one of the most prominent regional companies supplying door technology products and systems, movable walls and glass fittings and accessories. Dorma is also involved in the security, time management and access control segment and the number one in Germany for emergency exit control and escape route security systems.
The company, with production plants in Europe, Singapore, Malaysia, China and North and South America, employs 6,500 people, posted sales of EUR856 million in the fiscal year ended June 30, 2010, and operates on an international scale with 71 wholly owned companies in 47 different countries. Currently Dorma operates four companies in the MENA region, of which three are based in the UAE and one in Saudi Arabia with branches in eight cities and a total of 191staff across the Middle East.
Dorma, one of the contractors on Burj Khalifa, the world's tallest manmade structure, is currently working on Dubai International Airport Concourse 3, the Doha International Airport in Qatar, King Abdulla Financial District in Saudi Arabia, and the Doha Convention Centre, among other projects.
The Dubai Mall, Burj Al Arab, Dubai Metro, Meydan Racecourse, Qatar Convention Centre, Mall of Arabia (Jeddah), Bibliotheca Alexandrina (Alexandria), Emirates Palace Hotel (Abu Dhabi), and the Abu Dhabi Convention Centre are among other projects it has been involved in.
Dorma's fortunes are intricately tied into the cycles of the global and regional construction sector. Zawya spoke to Nassim Abu Yousef, Regional Director of Sales for the UAE, Qatar, Oman and Kuwait, to assess which way the construction winds are blowing. Excerpts:
Did Dorma face any special challenges on the Burj Khalifa project and how were they overcome?
We were involved with the architectural consultants Skidmore Owings and Merrill (SOM) from the start, and worked on every detail of the specific requirements for each of the 12,000-odd openings. We faced both functional and design challenges. Some of the functional challenges were to do with corridor doors which had a smoke vent function in emergencies, but the same opening had to be normal swing doors for regular use.
Similarly we offered special design solutions like a designer lever from the 'Create' series from Dorma, and conceptualized suite entry doors for the Armani Hotel with minimalistic visual elements on the door. Burj Khalifa, one of the world's iconic structure, required the entrances to have its own unique appeal and Dorma responded by installing revolving doors with glass ceilings. All along the conversations in this process, it was clear that the solutions suggested have to be unique for such an iconic project.
What is the current size of your order book?
We expect to achieve 30% more compared to last year, with good business prospects coming in from Abu Dhabi, Saudi Arabia, Qatar and Kuwait. Some of the projects that Dorma has executed successfully so far are the Al Zeina development in Abu Dhabi and Princess Noura University, Saudi Arabia.
How was your business impacted by the property/construction slowdown in the region?
Most Dorma products come at the finishing stage; hence we fended off the effects of recession well. Simultaneously, our investments in Saudi Arabia, Qatar and Kuwait helped us avoid the dip in sales.
What steps did Dorma take to combat the effects of the slowdown?
Dorma has always been in the lead in establishing a presence, unlike others. As an example, we were the first multinational company in our industry to establish a regional office and warehouse facilities more than a decade ago. We have gone ahead and set up country offices in Saudi Arabia, Qatar and Abu Dhabi. We have been amply rewarded with good business from other parts of the Middle East when the recession affected the region, predominantly Dubai.
What is your view on the emerging business landscape in your sector?
We see a clear growth happening in the infrastructure industry in Saudi Arabia, Qatar and Kuwait. Commercial and residential construction activity will be followed by infrastructure development and we see this trend happening in these countries. Major events like FIFA 2022 also boosts this process. As against simple locks and levers for a door being asked by customers in former times, extensive travel and web connectivity have made customers very knowledgeable and demanding, asking for the latest in the field, having seen it in other parts of the world.
What plans do you have to expand or invest in the region?
We have a 10-year plan to make further acquisitions in any of the countries depending on the opportunity, to cover the entire MENA region. There will be a few more offices in the emerging countries in MENA.
What new technologies / processes have you brought to the region and do you have plans to bring new ones?
Sustainability is a high priority at Dorma and all its new products conform to sustainable standards. Dorma is the market leader and the first company to get its products approved in Masdar under the Future Build portal. The Project Management Team has already set a very high benchmark with architects, designers and consultants in terms of its design and planning services.
© Zawya 2011
