Stroer and Shoof JV for Metro advertising
(DENNIS B MALLARI)
The alliance will result in the formation of a third entity governed by representation from both SCO and AMG on the board of directors. The deal will allow the alliance to benefit from Ströer’s 142 years of experience in out-of-home media and AMG’s understanding of local markets.
Dubai Metro is considered the world’s biggest driverless metro project implemented as one unit. The total cost of the Red and Green lines is about Dh15 billion. Once fully functional, the Metro system will be able to carry about 1.8 million passengers every working day. This will result in the Metro becoming one of the most prized outdoor media opportunities.
“We are delighted to align with the German leader in outdoor marketing solutions for the region’s most prized outdoor advertising project. Ströer has years of experience in out-of-home media and an impressive track record with the railway project in Germany.
Through this alliance, we not only intend to secure the Dubai Metro outdoor contract, but also make it the most viable project of its kind in the region,” said CEO of AMG Abdullatif Al Sayegh.
Concept Outdoor joined hands with Stöer to qualify for the Metro’s tender bid.
It is a pre-requisite that only companies with past experience of advertising in Metros could bid.
“The alliance with Arab Media Group comes at a time when both companies have significantly established themselves as leaders in their own right,” said Aldrin Fernandes, Chairman of the Concept Group.
“This is indeed a turning point in the region’s outdoor industry, and by forging this strategic alliance with one of the leading media groups in the UAE, we will ultimately create the added value we continuously strive to deliver with all our projects.”
Ströer AG, Germany’s market leader in out-of-home media and principal holding company of Ströer Concept Outdoor, which is based in the UAE, took over Deutsche Eisenbahn-Reklame GmbH in 2005, making Ströer a specialist in railway station and transport media by adding advertising space in 6,000 railway stations, 3,670 main-line trains, 14,700 local and regional trains and 7,000 railway bridges.
“We are confident this alliance will benefit the development of this project,” said Udo Muller, CEO, Ströer.
“We recorded 200 per cent growth in two years following our acquisition of the German Railway Advertising Group, and I am confident we will exceed it with the Dubai Metro project.”
Pierre Pereira, CEO, SCO, added: “Dubai is experiencing phenomenal economic growth and Dubai Metro will further fuel it by enhancing the mobility, while almost doubling the size of its out-of-home media market.
We at Ströer Concept encourage projects that will play a role in the UAE’s development and along with Shoof, we intend to make Dubai Metro the most successful project of its kind in the region.”
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