The construction sector has been one of the biggest casualties of the property downturn, and the industry's suppliers are also feeling the impact. Arkan Building Materials is one company with direct exposure to the sector that is struggling to find business.
Arkan's stock price has fallen 18 per cent since the start of the year, the greatest decline among stocks in its sector. Its trading volume is also down, says Wadah Al Taha, the chief investment officer at Al Zarooni Group in Dubai.
Arkan operates through its wholly-owned subsidiaries Emirates Cement Factory in Al Ain and Emirates Block Factory in Mafraq. Arkan's subsidiaries can produce 850,000 tonnes of clinker and 1.2 million tonnes of cement and concrete blocks annually.
The construction slowdown caused the company to report a net income of Dh2.7 million for the third quarter compared with Dh15.9m for the same period in 2010. Mr Al Taha expects the company's fourth-quarter results to be in line with the third quarter, at best.
Arkan's expansion plans, which were mapped out in the peak of the property boom, include the addition of dry mortar, a substance used to join bricks, and a lime plant.
Arkan's US$100m dry-mortar plant will have a production capacity of 1,000 tonnes per day and is expected to be fully operational in the second quarter of next year. Dry mortar is made from a combination of sand, limestone, cement and hydrated lime. The 57,000-square-metre facility is in Mafraq, a district on the outskirts of Abu Dhabi.
Arkan's lime plant, with a design capacity of 900 tonnes per day, is also expected to come online in the second quarter of next year. The facility is to be located in Al Ain Industrial Park.
"Looking a few years back when equity, commodity, construction and real estate market were booming, the plans of increasing capacity looked quite viable," Mr Taha said.
halsayegh@thenational.ae
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if you go
The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.
The trip
Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.
Results
2pm: Serve U – Maiden (TB) Dh60,000 (Dirt) 1,400m; Winner: Violent Justice, Pat Dobbs (jockey), Doug Watson (trainer)
2.30pm: Al Shafar Investment – Conditions (TB) Dh100,000 (D) 1,400m; Winner: Desert Wisdom, Bernardo Pinheiro, Ahmed Al Shemaili
3pm: Commercial Bank of Dubai – Handicap (TB) Dh68,000 (D) 1,200m; Winner: Fawaareq, Sam Hitchcott, Doug Watson
3.30pm: Shadwell – Rated Conditions (TB) Dh100,000 (D) 1,600m; Winner: Down On Da Bayou, Xavier Ziani, Salem bin Ghadayer
4pm: Dubai Real Estate Centre – Maiden (TB) Dh60,000 (D) 1,600m; Winner: Rakeez, Patrick Cosgrave, Bhupat Seemar
4.30pm: Al Redha Insurance Brokers – Handicap (TB) Dh78,000 (D) 1,800m; Winner: Capla Crusader, Bernardo Pinheiro, Rashed Bouresly
Results
5pm: Warsan Lake – Maiden (PA) Dh80,000 (Turf) 2,200m; Winner: Dhaw Al Reef, Sam Hitchcott (jockey), Abdallah Al Hammadi (trainer)
5.30pm: Al Quadra Lake – Maiden (PA) Dh80,000 (T) 1,600m; Winner: Mrouwah Al Gharbia, Sando Paiva, Abubakar Daud
6pm: Hatta Lake – Handicap (PA) Dh80,000 (T) 1,600m; Winner: AF Yatroq, George Buckell, Ernst Oertel
6.30pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,600m; Winner: Ashton Tourettes, Adries de Vries, Ibrahim Aseel
7pm: Abu Dhabi Championship – Listed (PA) Dh180,000 (T) 1,600m; Winner: Bahar Muscat, Antonio Fresu, Ibrahim Al Hadhrami
7.30pm: Zakher Lake – Rated Conditions (TB) Dh80,000 (T) 1,400m; Winner: Alfareeq, Dane O’Neill, Musabah Al Muhairi.
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
