UAE cable maker Ducab aims to increase exports to India under CEPA deal

UAE cable manufacturer Ducab More growth opportunities expected in India Sign the Comprehensive Economic Partnership Agreement (CEPA) Relations between the UAE and Asia’s third-largest economy and strengthening of relations between the two countries earlier this year.

Chief executive Mohammed Al Mutawa said the company plans to supply cables and other metal products to the transportation sector as well as large infrastructure projects under construction in India. National.

“Our revenue in the Indian subcontinent has been constrained due to some previous trade barriers,” he said.

“Now, with the agreement we have reached, those barriers have been greatly reduced and business opportunities have increased significantly.”

The UAE and India signed the CEPA agreement in February, which is expected to open up more investment avenues by boosting non-oil trade between the two countries from the current US$60 billion to US$100 billion within five years.

As part of the agreement, 80 percent of tariffs on Indian and UAE goods have been removed, and all tariffs are planned to be removed within 10 years to facilitate trade between the two countries, said Dr. Sani Al Zeyudi, UAE Minister of State for Foreign Trade. .

The agreement is also expected to increase the UAE’s GDP by 1.7 percent or $8.9 billion by 2030, and boost exports by 1.5 percent or $7.6 billion.

“We first shipped to the Indian market in 1988 and we supplied almost 100km of low voltage cables for the Nhava Sheva project [in Mumbai]From these humble beginnings, Ducab has access to the 100 partners we deal with in India…now we have multiple projects going on,” said Mr Al Mutawa.

India, the second most populous country in the world, Billions of dollars are being poured into new road and rail projects across the country to boost growth. The IMF said the country’s economy is expected to grow by 7.4% this year.

Ducab, which is jointly owned by Abu Dhabi holding company ADQ and Dubai Investments, made 5.5 billion dirhams ($1.49 billion) in revenue last year and plans to have new opportunities to sell its products in different markets this year.

“There are new opportunities in existing markets, but we are more focused on opportunities in new markets, which will expand our reach,” said Mr Al Mutawa.

Ducab is looking to expand its operations in Africa and Europe due to increased demand for its cable and metal products, he said.

The company currently exports 60% of its products to different markets, with the UAE accounting for 40% of its sales.

Mr Al Mutawa said the UK, China, Australia, Egypt and Iraq are its biggest export markets and the company plans to expand in markets including the US and India.

Dukab Opportunities to increase exports to Saudi Arabia, the Arab world’s largest economy, are also being sought.

“We do have a large market in the UAE that requires our greatest attention, but we are expanding in Saudi Arabia, where our sales have grown significantly over the past few years… Saudi Arabia will be an important part of our strategy in the future ,”He says.

Saudi Arabia is investing Significant capital has been invested in several large-scale development projects, such as the $500 billion Neom project. It also plans to build more internal rail networks to kickstart its investments in infrastructure.

Another area of ​​focus for Ducab is the renewable energy sector. The company plans to supply cables for new projects in the industry amid a growing global focus on increasing clean energy capacity to reduce emissions.

“We have been the supplier of choice for all large-scale solar projects in the UAE,” said Mr Al Mutawa.

This includes Mohammed bin Rashid Al Maktoum Solar Park In Dubai, the world’s largest single-point solar park. It aims to have a total capacity of 5,000 MW by 2030.

Ducan is also supplying the Al Dhafra project in Abu Dhabi, which upon completion will be the world’s largest solar power plant with a capacity of 2 GW.

“Sudale [solar plant] Another big project in Saudi Arabia [for us],” He says.

The company also supplies cables for wind farms in Australia and Europe, and is considering expanding its scope to “the wider spectrum of renewable energy,” he said.

Mr Al Mutawa said the expected slowdown in the global economy could put “pressure” on Ducab due to rising inflation and the war in Ukraine, but would not affect its business and growth plans.

“In the past 43 years, since the company’s inception, Ducab has only proven its ability to adapt to any changes in the market and be tactically and strategically forward-looking, positioning UAE and ‘Made in the UAE’ products in global markets,” He says.

He said the company had no plans to raise funds through a bond or sukuk offering, but “with ambitious growth and expansion plans, everything is in the mix”.

Updated: August 26, 2022 3:30am