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Khaleeji Commercial Bank (KHCB) will be establishing a building materials company to serve the construction wholesale and retail markets in the Gulf, Middle East and North Africa.
The new company, which will be called Binaa, is expected to have a cumulative investment value of more than $2 billion. It will aim to achieve a consolidated total capacity of more than 32 million cubic metres of ready-mix concrete, precast and cement blocks, per annum in addition to trading of building steel structure, aluminum, glass and various type of aggregates.
"Due to a variety of factors, there is a huge opening in the market at the moment for a building supply company that can serve both the institutional and retail segments," said KHCB board member and CEO Ebrahim H Ebrahim.
"Our intention is to build a first-class, regional brand that will effectively reposition the building materials industry in the region," said Mr Ebrahim. "We will also be looking selectively at consolidation targets as a way to execute the company's growth strategy."
Success of the venture is predicated on the fundamental understanding that building materials comprise more than 40 per cent of the construction cost and with the rapid rise in large-project and real estate development throughout the region, market size for building materials is expected to exceed $600 billion.
