30 January 2006
Dubai: The Al Gaith group has announced that it will launch a major GCC-wide expansion initiative next month.Gaith Bin Hamel Al Gaith, director general of the group, told Gulf News yesterday that the group is building a steel mill in Oman with an annual capacity of 1.5 million tonnes.
The first phase of the project will cost $808 million. "We prefer to not mention the total cost now," he said.
Al Gaith has also bought into Gulf Merchant Group (GMG) and formed a partnership, becoming the GMG's first GCC investor.
Nabeel Maaloul, Managing partner of GMG, said the company is planning to expand its business in the GCC, offering financial services in line with international standards. "We studied about 10 projects in the region that would entail investments of around $7 billion," he added.
GMG's move is in response to strong regional demand for investment banking services, said Maaloul. He added western investors will be keen to invest in the GCC's growth with the assurance that their investments are being managed according to the international rules and regulations.
GMC will offer corporate finance, capital markets, fund management and private client services.
The key factors driving this demand are the deregulation of key sectors in the regional economies, upcoming privatisations, the much-needed broadening of private sector ownership and the inflow of foreign direct investments.
Gulf Merchant Group has planned a number of partnerships with financial institutions. The first to be announced is the partnership with Cantor Fitzgerald & Co, a leading global financial services provider.
By Mohammad Ezz Al Deen
Gulf News 2006. All rights reserved.
