As part of its ongoing diversification strategy, Gulf Navigation Holding is planning to agree a cooperation deal with Ali & Sons Marine Engineering Factory (ASMEF)in Abu Dhabi. The intention is to establish a joint venture between the two firms to undertake ship maintenance, repair and ship building services for the oil and gas and offshore sectors especially. Khamis Juma Buamim, board member, managing director and group chief executive of Gulf Navigation Holding said, “We look forward to our potential strategic partnership with ASMEF, which is considered one of the leading oil and gas and maritime service providers in this region. It has excellent shipbuilding and repair facilities, and we aim to jointly expand our current business activities in the maritime sector in order to secure maximum returns on our investments.”
The partnership is expected to allow both parties to benefit from emerging market opportunities, taking advantage of the huge investments that are being planned over the next decade by several Gulf countries in the offshore sector.
Gulf Navigation Holding announced this potential partnership at the same time as issuing a Sukuk according to the Islamic Law with a total value of US$ 250 million. This will be used to finance its expansion plans, diversify its investment portfolio and boost profits.
The company’s latest financial report shows that Gulf Navigation Holding has continued its steady improvement in terms of financial performance, with net profits reaching AED 12.4 million (US $ 3.4 million) in the third quarter of 2017, compared to AED 10.2 million (US $ 2.8 million) in the second quarter. This represents a very healthy growth rate of 21 per cent.