No IPO for Al Fahim; overheads being cut
Abu Dhabi - Speaking to reporters, Mohammed Abdul Jalil Al Fahim, chairman of the Al Fahim Family Council, said the market is not right to issue to shares.
Abu Dhabi's leading conglomerate Al Fahim Group is not pursuing its plans to go public to issue an initial public offering due to a slowdown in markets.
One of the leading family-owned groups - which has interests in automobiles, real estate, travel and tourism, oil and gas services and industrial activity - had plans to raise capital by issuing shares to public.
Speaking to reporters, Mohammed Abdul Jalil Al Fahim, chairman of the Al Fahim Family Council, said the market is not right to issue to shares.
The diversified group has shown 15-20 per cent year-on-year growth in business as profit and sales are showing tremendous growth, Al Fahim said.
Talking of the global economic crisis and impact of lower oil prices on the domestic economy, he said the group is reducing its overheads.
"We are now better equipped. We have cut overheads; that's what we should do in such times to improve profits," he said.
Khalid Al Fahim, director of the group, said the company will continue to bet on Abu Dhabi's economy, which is stable, strong and growing. He was bullish on the UAE economy and said "eventually things will pick up".
Mohammed Abdul Jalil Al Fahim said the group is expanding its businesses by setting up new showrooms and workshops in the emirate. "We have just opened our outlet in Deerfield's at the Abu Dhabi-Dubai highway," he said.
The group is the distributor for Mercedes-Benz, Jeep and Fiat automobiles in Abu Dhabi. Al Fahim Group represents Bosch, Tyre plus, Swiss Airlines and Michelin. The group, which runs 13 companies under its emberella, has a 3,000-strong work force.
Earlier, Al Fahim Group awarded 130 long-time employees who have served for five to forty years at a ceremony that was presided over by Mohammed Abdul Jalil Al Fahim.
Present on the occasion were Abdullah Abdul Jalil Al Fahim, honourary chairman of the Al Fahim supervisory board; Ahmed Abdul Jalil Al Fahim, chairman of Al Fahim Group; and its board members.
Speaking at the occasion, Mohammed Abdul Jalil Al Fahim said: "Since the 1980s, we have been hosting this ceremony as an important occasion to appreciate the dedication of our employees in line with Al Fahim Group's overall employee engagement strategy."
Ahmed Abdul Jalil Al Fahim said that keeping with the core values embedded in the organisation by the late founder, Abdul Jalil Al Fahim, Al Fahim Group is steadfastly advancing to a new phase of growth and expansion.