Al Basel acquires Al Shabak Contracting

Al Basel Group, one of the leading UAE-based companies with various business interests in the Gulf, announced yesterday that it has acquired Al Shabak Contracting as part of an expansion strategy to further broaden its business interests in UAE.

The deal is worth a couple of million dirhams in both investment and takeover, CEO of Al Shabak told Emirates Business yesterday.

"The move will complement our real estate activities, which achieved a turnover of Dh500 million in its first year of operation in 2007. The takeover will enhance Al Basel Group and position us well in the booming regional construction market," said Basel Al Kasem, CEO, Al Basel Group. "Al Shabak expects contracts and projects worth Dh300m this year. We already have won two contracts and are in the process of bidding for another project in Dubai. We will cover commercial and residential projects but do not want to overstretch ourselves at the moment."

Talks were initiated six months ago between the two companies but the legalities were finalised recently, he said. "Besides, we have just finished building labour camp for our workers," said Al Kasem.

Established in 1996, Al Shabak has completed 22 projects and maintains a productive business partnership with Belhasa International Co., one of the leading proponents of industrial development in the UAE. "In the mid-term, we are looking at new projects in Dubai, but in the long run we will look at projects in Sharjah and Abu Dhabi," said Al Kasem.

"Our inclusion in the Al Basel Group provides us access to an established regional brand name and flexibility to explore new markets. While we face new management challenges as a result of our acquisition, we shall continue adopting advanced administrative and technical methods to efficiently meet the needs of domestic and regional construction sectors," said Ayman Yahia, general manager of Al Shabak Contracting. The company is in the process of setting up a branch in Sharjah. Al Basel Group's current portfolio consists of Najd Rent A Car, Al Basel Consultancy and Al Basel Real Estate Brokers.

Al Kasem admits the current construction scenario has its own challenges in terms of rising prices. "The rise in the prices of steel and cement is definitely a challenge to the industry. But we hope more regulations will be adopted to regularise the market," said Al Kasem.