New company to help contractors fight prices
06 Mar 2005A company with a capital of DH100 million will be set up by the Contractors Association to help members beat high prices for materials, association officials said.
The company will import iron, cement, wood and other building materials in bulk and then sell them to contractors at fixed prices, said Dr. Ahmad Saif Belhasa, Chairman of the Contractors Association in a statement to the media.
The company will thus provide contractors with relief from recent high prices for materials, association officials said.
The new company is likely to be called the "Emirates Company for Importing Building Materials," association officials said.
Its initial capital of DH100 million may be doubled by the Belhasa Group if there is sufficient enthusiasm among investors for equity stakes in the company, association officials said.
Feasibility study
The Talal Abu-Ghazaleh Group, a professional services firm, recently completed a feasibility study for the backers of the materials company concept.
The initial offering of shares in the company will be open only to companies holding membership in the Contractors Association, association officials said.
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