In a move that will form a new industrial giant in the United Arab Emirates, Mubadala Development Company (ICD) of Abu Dhabi and the Investment Corporation of Dubai today announced the creation of Emirates Global Aluminium - a jointly-held, equal-ownership company that will integrate the businesses of Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL) - with plans for significant local growth and international expansion.
The Chairmen of the two shareholding companies, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and His Highness General Sheikh Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, witnessed the signing of the agreement.
The accord builds on a successful partnership that started with the formation of EMAL in 2006, a joint venture of Mubadala and DUBAL. Emirates Global Aluminium will have an aggregate enterprise value of more than US$15 billion and will be the fifth-largest global aluminium company by production once EMAL Phase II is complete in H1 2014.
Building on the heritage of EMAL and DUBAL, the new company will look to expand along the value chain, from aluminium smelting to alumina refining and bauxite mining overseas. Given its scale, Emirates Global Aluminium will also continue to attract downstream manufacturing and ancillary businesses related to aluminium smelting and alumina refining as it grows, thereby indirectly creating additional jobs.
Emirates Global Aluminium will be managed by a board of directors that will be chaired by Khaldoon Khalifa Al Mubarak, current Chairman of EMAL, while Saeed Mohammed Ahmed Al Tayer, Vice-Chairman of DUBAL, will become its vice-chair. The board will also include Dr. Sultan Al Jaber, Abdulla Kalban, Khaled Al Qubaisi, Ahmed Yahia Al Idrissi, Abdul Wahed Mohammad Al Fahim and Khalid Al Bakhit.
The new company will be led by two well-established leaders in the UAE, both veterans in the aluminium industry. Abdulla Kalban, President and CEO of DUBAL with 28 years of experience, will be Managing Director and CEO, and Saeed Al Mazrooei, President and CEO of EMAL and leader of its rise in the industry, will become CEO of UAE Operations.
"The creation of a new global industrial champion anchored in the UAE is an important step towards realizing our vision for a diversified and sustainable economy. It is especially inspiring that UAE technology contributed to the success of this business and that it will continue to be led by UAE Nationals as it grows locally and globally," said Al Mubarak, CEO of Mubadala. "Emirates Global Aluminium will build on strong foundations of leadership, to become a major industrial champion and engine of economic development for our people." Mohammed I. Al Shaibani, the CEO of ICD, said: "Today’s announcement builds on what these two outstanding organisations have created and reflects the UAE’s long-term industrial strategy. Emirates Global Aluminium will accelerate employment with 2,000 direct jobs being created by 2020, adding to more than 6,200 direct jobs already in existence. We also conservatively estimate that a further 6,000 indirect jobs will be generated, delivering total employment of over 33,000 people by the UAE aluminium sector through the end of this decade." Pending required approvals, the formal commencement of joint operations is expected to be completed within the first half of 2014, at which stage further announcements will be made.
The signing ceremony was also attended by H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, H.H.Sheikh Surour bin Mohammed Al Nahyan, Mohammed Ahmed Al-Murr, Speaker of Federal National Council, H.H. Sheikh Hazza bin Zayed Al Nahyan, National Security Advisor, H.H. Sheikh Nahyan bin Zayed Al Nahyan, Chairman of the Board of Trustees of Zayed bin Sultan Al Nahyan Charitable and Humanitarian Foundation, H.H. Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior, H.H. Sheikh Tahnoun bin Zayed Al Nahyan, Deputy National Security Advisor, H.H. Sheikh Hamed bin Zayed Al Nahyan, Chief of Abu Dhabi Crown Prince’s Court, H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority and Chairman of Emirates Group, Sheikh Hamdan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research, and a number of other Sheikhs, ministers, and senior officials.