Dubal Holding LLC (DH), the investment arm of the Dubai Government in the commodities and mining, power and energy, and industrial sectors, recorded a net profit of Dh1.79 billion in 2023, representing another year of good performance for the group.
The results were announced at DH’s annual general meeting (AGM), held under the leadership of its chairman, Saeed Mohammed Al Tayer.
Members of the board and management of DH were present at the meeting, along with its auditors and shareholder representative from Investment Corporation of Dubai (ICD). DH had a remarkable year due to its international acquisition, new expansion as well as effective operational performance.
Al Tayer said: “We are working diligently in line with the directives of our wise leadership. With its vision that shapes the future, we made an early investment in the aluminium industry. This strategic direction contributed to enhancing the competitiveness of the UAE and Dubai in the global aluminium markets. When reflecting on the successes of 2023, we are on track to make global investments in a range of industries to provide growth and long-term financial returns for our shareholder. Our investments are also driven by a commitment to building a greener future and have supported ambitious and sustainable initiatives including the Dubai Industrial Strategy 2030 that aims to make Dubai a preferred manufacturing platform for global businesses, Dubai Economic Agenda (D33), Dubai Clean Energy Strategy 2050, and Dubai Net-Zero Carbon Emissions Strategy 2050.”
Al Tayer and the members of the board were briefed on the status of various ongoing projects at DH, including its focus on aluminium downstream extrusion projects. In addition to the acquisition of Thermalex located in Alabama, USA, DH is also exploring the possibility of other opportunities including large profiles and machined components for the automotive, industrial and new energy verticals such as hydrogen, as well as building a recycled aluminium/cast house facility from extrusions / profiles to utilize scrap generation from group companies to produce billets that meet specific customer requirements for low carbon initiatives.
Al Tayer was also informed of the diverse and strategic investments made during the period, which had a significant impact on the company’s positive outcomes. DH’s portfolio of investments includes a 50 per cent shareholding in Emirates Global Aluminium (EGA), UAE; a minority stake in Sinoway Carbon – a Calcined Petroleum Coke producing plant located in Shandong Province, China; and full ownership of both OSE Industries LLC (OSE), a Dubai-based aluminium extrusion company, and Thermalex.
Al Tayer was briefed on the efforts made by DH and its consortium partners to make major progress toward the construction of the largest waste-to-energy facility in the world, located in Warsan, Dubai. ‘First Fire’ or the production of electricity by burning municipal solid waste (MSW) and reaching the design capacity of burning 5,555 tonnes of MSW in a single day were also major achievements of the year. The project construction is estimated to be fully completed by July 2024 which is within time and budget.
Ahmad Hamad Bin Fahad, CEO of Dubal Holding, commented: “Sohar Titanium, a strategic project in which DH is a shareholder, made good progress in the year by awarding contracts for civil, structural steel, and high voltage substations, as well as by signing an offtake agreement for the sale of titanium slag and a feedstock supply agreement to obtain the necessary raw material, ilmenite ore. The project is expected to energise first furnace by the March 2025, marking a significant milestone in the company’s growth path.
“The acquisition of Thermalex in 2023 made it a particularly noteworthy year for us. Our expansion project at OSE further increased our capacity to meet the specific needs w.r.t precision extrusions for both new and existing EV Battery Cooling, Automotive HVAC and other industrial clients. We also increased our ownership position in OSE in order to focus on both domestic and international acquisitions, and help the company achieve its larger goal of ranking among the top two players globally.”