Senaat is a corporation that was created by the Abu Dhabi government and charged with investing the government’s money and helping it generate profit and revenue. The other name for Senaat is the General Holding Corporation. Last year the Senaat saw a net profit growth of 5% which gave the corporation a total of Dh923 million. This is the corporation’s best year on record since its creation. The corporation is responsible for the industrial section of the Abu Dhabi government; this means it oversees the government’s stakes in gas services, construction, steel, oil and more. The corporation’s total earnings before depreciation, tax and interested was Dh2.1 billion.
The Senaat is vital to ensuring the diversification of the Abu Dhabi government’s holdings away from oil to ensure it is strong and healthy even when there is ups and downs in the oil markets. The company at present employs well over 15,000 people. The company’s strategy of investing in numerous industrial sectors has continued to prove successful despite the volatile economy last year. Their revenues rose 16% to Dh13.4 billion and their total assets for that same period was Dh26.8 billion. Hussain Al Nowais, chairman of Senaat said, “Senaat has completed the year with robust revenue and profit growth despite a volatile economic environment, thanks to the company’s flexible business model and its ability to weather the impact of market volatility and economic cycles”.
Another demonstration of the company’s success is its ability to reinvest in its own projects and new ones without the assistance of government funding. The company’s financial strength should be able to help strengthen the Abu Dhabi and UAE government. Hussain Al Nowais is looking to continue investing heavily in various industrial projects with an anticipated Dh5 billion over the next two years. The company is also planning to continue its diversification of investments in order to widen the base of its assets thereby fueling further growth.
Subsidiaries of Senaat have continued to show increasing profits and growth despite intense competition. The Emirates Steel was able to continue expanding and overcome Turkish and Chinese steel. The Ducab joint venture between the Dubai and Abu Dhabi government has been able to maintain its position as a leader in the region for cable and wire manufacturing. Several other subsidiaries in industries such as cement and food production also showed remarkably strong performances over the last year contributing greatly to the strength of the Abu Dhabi and UAE government.
Investment firms from the UAE have been making positive economic strides in their own country that is billowing out to international investments. Khalifa Fund for Enterprise Development has already begun to pave the way for Emirati innovators throughout the UAE by planning an entrepreneurial program that would help Emirati’s develop their ideas and bring them to reality. This program is a part of the many initiatives taking place within the UAE to fuel their own economy and with the positive strides, Khalifa Fund for Enterprise Development has its sights on helping other nations prosper.
Chairman of the UAE-based investment firm, Hussain al Nowais, announced the activation of a loan agreement totaling USD $200 million to be invested in developing the microfinance sector in the Arab Republic of Egypt. The Egyptian Ministry of International Cooperation and the Egyptian Social Fund for Development signed the loan agreement with Khalifa Fund.
Hussain al Nowais stated that the agreement represents the leadership of the UAE and how the two countries can enhance their mutual relationship to bring economic and social benefit to Egyptian citizens. The loan agreement is anticipated to produce more than 200,000 job opportunities and enterprises over the next six years. The focus of the loan is to help bolster employment and reduce poverty throughout the country. Additionally, it’s a great way to promote the role of women in business by fueling their entrepreneurial attributes and skills to help contribute to the national economy in the Arab Republic of Egypt.
With that being said, some of the parameters of the loan agreement are allotted to provide 25% of the financing strictly towards female enterprises while the remaining amount will be directly diversely split between men and woman. The loan will be a significant factor in the Egyptian governments’ efforts to improve social welfare, decrease poverty and support Egyptian citizens. According to Hussain al Nowais, the loan will reach tenure in 15 years with a six-year grace period which seems to allow for plenty of time for the Egyptian government to make good use of the funds.
In an effort to improve the energy sector in Egypt, Al-Nowais Investment Groups has signed an agreement with the Egyptian Electricity Holding Company to build a coal-fired power plant. This $4.5 billion agreement will be a first of its’ kind in the Suze region in Egypt and will help position the country as a global leader in the field of renewable energy.
Chairman of UAE-based Al-Nowais Investments Group in Abu Dhabi, Hussain al Nowais, signed the deal to help construct the coal-fired power plant with the chairman of Egyptian Electricity Holding Company, Gabr el-Desouky. The plant is expected to produce 2,460MW of power that will sustain economic development and enhance Egypt’s renewable energy resources. This new plant is a part of the growth of Egypt’s energy sector because another coal-fired power plant is in the works in the Delta governorate of Kafr el-Sheikh. The additional plant was a $1.5 billion deal made by Ahmed al-Hanafy who is the chairman of the Egyptian Electricity Transmission Company.
In addition to the Al-Nowais Investment Groups agreement and the one in the Delta governorate, The Egyptian Ministry of Electricity and Renewable Energy also signed other deals that total $21.2 billion with other international firms. This heightens Egypt’s power output to meet the demands of the nation and put them into the global position of a leader in renewable energy.
The international deal with Al-Nowais Investment Groups is just one of many stemming from Hussain al Nowais and his ventures. The investments are putting the UAE on the map as a global investor into many different sectors as they broaden their economic impact to other industries besides crude oil. The UAE is becoming the focus among other nations for investment agreements and making it the ideal, central location of enhancing economic growth.