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.