Arabian Pathfinders

Arabian Automobiles Company, one of the largest automobile distributors in the Gulf and the sole distributor of Nissan, Infiniti, and Renault in the Northern Emirates, announced today that they will invest over $136 million over the next three years to expand its sales and services facilities in and around Dubai. The company, which is owned by AW Rostamani Corporation, will construct its largest logistics facility on three million square feet in Dubai Industrial City, with the capacity to hold 12,000 cars. The facility will cost $95.3 million.

The firm's goal is to capture at least 25% of Dubai's local car market by 2010.

In 2006, 236,515 cars were sold in the United Arab Emirates, an increase of 23 percent over 2005. According to Arabian Automobiles statistics, the sales of Japanese cars between January and April of 2007 grew 32.3 percent compared to the same period last year.

Despite political tensions in the Middle East and the rising cost of living in Dubai, the auto market is hot. At least Arabian Auto is banking on it.

Sources: Middle East North Africa Financial Network (Jordon), AW Rostamani/Arabian Automobiles, AME Info, Gulf News

A Dubai on the Atlantic?

Have you heard of "the new Dubai"? It seems like a contradiction in terms, considering that Dubai City itself is quite new (before 1971, there were no signs of that city on the Arabian Peninsula).

However, the "New Dubai" that I'm referring to is what the Senegalese government is calling its new capital, which will be located 150 kilometers North of Dakar, the present capital.

The city does not exist yet. On this remote stretch of coast, called Lompoul, Senegalese President Abdoulaye Wade envisions a $30 billion "Dubai on the Atlantic," also called W.D.C. by its planners. Dubai World, the original Dubai's state holding company, will begin construction in Senegal next year.

The story was reported today, however a group of Gulf developers met with the Senegalese President this April in Dubai (the "old" Dubai) to discuss the "new administrative city" that was to be developed. Among the UAE business people in discussions were members of Dubai World as well as Tameer, a.k.a. Al Khaleej Development Company, which is also developing a $20 billion city in Libya.

President Wade's election in 2000 ended four decades of socialist rule, and since then has made Senegal attractive to foreign investors. However, he has faced criticism for not doing enough to end poverty and unemployment. Thousands of Senegalese people continue to risk their lives every year trying to reach Europe, and currently over 40% of the population is unemployed.

Reuters reported an interview with Ahmed Khalifa Niasse, the minister leading the project:

"In three years, the central government will no longer be in Dakar, but in the new capital. In the first two years, we expect 200,000 people to come, and three years later, 2 million. . .We think this new Dubai can be more attractive than the Dubai in the Gulf."

Senegal, a French-speaking country in West Africa, will model its new city on Maghreb styles, designed by a Parisian Architect. Plans for the city include Africa's first high-speed train linking Lompoul with Dakar, an eight lane toll road, and a Formula 1 circuit. Currently there are no direct flights from Senegal to anywhere in the Dubai area, which will change by 2008.

Sources: Reuters (Alertnet), Reuters (Africa), Overseas Property Mall

Weekend Expansions Update

$ Quatro Composites is expected to complete their new Orange City, Iowa, plant expansion by August 2007. Quatro is also moving its Poway, California-based offices to a larger facility in May to accommodate staff and R&D growth.

$ Cobasys, a battery manufacturer, confirmed the addition of 18,860 square feet to its headquarters in Orion, Michigan, to be completed by July. Cobasys is the only North American manufacturer supplying NiMH battery systems for hybrid vehicles, including the Saturn Vue Green Line and the Chevrolet Malibu hybrid.

$ VienTek, a joint venture between Mitsubishi Power Systems Americas and TPI Composites, launched plans to triple the capacity of their wind blade manufacturing operation in Juarez, Mexico. The expansion, to be completed in October, will include two plants with a total of 500,592 square feet of manufacturing space and 800 employees.

$ Air Arabia, the first low-cost airline in the Middle East and North Africa, announced today that it will construct a hotel at Sharjah Airport in Dubai. The 300-room hotel will cost $350 million AED, or over $95 million US dollars.

$ Bell Equipment, a South Africa-based earthmoving equipment manufacturer, is currently embarking on a $40 South African Rand, or about $5.5 million US dollar, upgrade of its Cape Town manufacturing and customer support facilities. The project is due to an expansion of the construction sector in Cape Town and the growth of diamond operations on the west cost of the country.