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Dubai Cable is expected to become the largest rubber cable manufacturer in the Middle East and North Africa. Because it tried to expand production to meet the growing demand for special cables in the region due to industrialization.
Dubai Cable disclosed that last year the company’s profits increased by 10% from 2011, but did not disclose the specific figures. The company is a joint venture between the sovereign wealth fund Dubai Investment Corporation owned by the Dubai government and Senaat, a state-owned industrial holding company in Abu Dhabi. The current chairman is Al Dhaheri, chief operating officer of Senaat.
Al Dhaheri's current important task is to diversify the cable product portfolio beyond the original product portfolio consisting of PVC or XLPE insulated cables, copper rods and copper wires.
General Manager Andrew said, “We are expanding the production of these products in the country. This not only reflects our desire to expand our product range, but also reflects the economic development of the UAE and the entire Gulf region. This will be due to the industrialization of the Gulf region and the construction of the railway. To increase the demand for these products, we must make adequate preparations to meet the needs of the local market. This also gives us the opportunity to increase exports."
Rubber cables are widely used in railways, shipbuilding and heavy industries because of their good insulation, high temperature resistance and chemical resistance. Emirates Steel Company is a customer of Dubai Rubber Cable.
Last year, Dubai Cable’s overseas sales were strong and its financial performance was encouraging. This helped offset the adverse impact of the weak domestic market. Last year, exports accounted for 42%. At present, the markets with the greatest demand are post-war Iraq and Libya. The company’s exports to Iraq have increased by 7 times.
Al Dhaheri, Chairman of the Board of Directors, said, “Because of the successful development of new markets, the introduction of new products and the tightening of fiscal policies, this resulted in an increase in profits in 2012. Despite the increased difficulty of market conditions last year, Dubai’s presence in the core market The share is still rising."
Last year, as copper prices fell by 10%, the revenue was lower than in 2011, but profits rose by 10%. The board of directors has agreed to increase the dividend by 25%.