Mr. Khaldoun Rashid Tabari
A precipitous drop in oil prices was the major feature of the MENA region’s economic performance in 2015. 2015 was a pivotal year for DSI due to the considerably challenging market conditions and the slowdown in our regional industry at large. The year was marked by sluggish global economic growth which fostered substantial hurdles operationally and financially across our key markets. It was one of DSI’s toughest years since our historic IPO, during which we undertook certain exceptional measures to ensure feasible business continuity.
Looking at the year ahead, we expect to deal with a challenging macro-economic environment driven by weak oil prices, a slowdown in the construction sector and a more competitive landscape.
In terms of our growth trajectory, we expect to increase our market share in our home market (the UAE) and we will prudently manage our growth in KSA and Qatar. We will explore joint ventures and consortium opportunities to minimize risk and achieve selective and sustainable growth.
We believe that the Engineering business will continue to be the mainstay driving our profitability sustainably. We have also devoted a lot of our resources to cater to the rapidly growing regional rail market and have aligned ourselves with the leading global rail experts through strategic consortiums. We expect to generate positive momentum and secure substantial rail related projects in the GCC region in 2016.
We remain a reputed engineering and construction services oriented company in the Middle East with an established credential that has been earned though our work on some of the region’s most iconic and complex projects. Our contribution towards the shaping of the region’s skyline has earned us the faith and trust of our clients and partners.
The underlying long-term growth outlook for the regional industry presents significant opportunities for DSI to continue reinvesting and reinvigorating our core businesses. The year ahead will be increasingly complex and challenging, but we are prepared to meet these challenges with more than 135 years of experience, technology, and the skill and dedication of our employees who take immense pride in their work and the historic legacy of the Drake & Scull Brand. Our greatest asset continues to be our experienced, motivated, talented and skilled 21,000 strong DSI family who have proven their capabilities and risen to the varying challenges that have come our way over the last 50 years in the MENA region.
With the decisions we’ve made this year, the strategy we’ve put in place, the organization we’ve built, the skilled talent we have, the unwavering trust reposed in us by our shareholders and the sound fundamentals of our business model, we believe we are well-positioned to emerge successfully through the tough period ahead.