GIC and GIH buy equity stakes in UAE-based Alumco

Alumco says the deal will give a push to its expansion plans (SUPPLIED)

Alumco, the leading specialised aluminium façade manufacturer and major glass façade processor in the UAE, yesterday said Gulf Investment Corporation (GIC) and Global Investment House (GIH) bought 24.4 per cent and 8.4 per cent equity stakes respectively in the aluminium company.

Managing Director Samer Barakat said: "This investment is a major shot in the arm as it will further enhance Alumco's growth and will give us massive expansion possibilities. With this investment we aim to position ourselves to become the number one aluminium and glass façade manufacturing company in the Gulf."

Hisham Al Razzuqi, CEO of GIC, said: "We are very pleased with this investment as Alumco has proven to be a formidable player in the aluminium and glass industries. We see this investment as a launch pad for the company's further growth into the regional markets. The investment in Alumco's equity fits with our strategy of expanding in the GCC region's manufacturing sector by partnering with the private sector."

GIC, owned by the six GCC governments, is a leading investment firm and has assets under management of more than $9 billion (Dh33bn). It has made several investments in the building materials and construction industry in the UAE and other GCC countries.

Shailesh Dash, senior vice-president and head of Alternative Investments at GIH, said: "This investment indicates our continued confidence in Alumco to become the leading regional supplier of aluminium façades and glass products to the booming Gulf construction markets. Upon the completion of the agreement, Global's private equity funds will now hold a total stake of 29.7 per cent in Alumco as it already owns 21.21 per cent of the company."

Alumco has completed several prestigious projects, including 15 towers at Burj Dubai Residence, Dubai Police Headquarters, Al Murroj Complex, Shatha Tower in Dubai Media City, four towers at the JBR Sector Six complex, the Burj Dubai Lake Tower Hotel, Sky Gardens at Dubai International Financial Centre and Marine Tower in Dubai.


The numbers

24.4%: Stake in Alumco that was bought by GIC

8.4%: Stake in the firm that was acquired by Gulf Investment House