Mr. Majed Saif Al Ghurair
DSI’s journey in the last five decades has been a story of pioneering innovation, engineering excellence and strategic evolution as we expanded our footprint across MENA, Europe and Asia and diversified our services portfolio while achieving significant growth (since our historic IPO) during periods of both economic prosperity and regional challenges.
2015 was one of the most challenging years in our history. As the year progressed, we experienced unprecedented economic instability globally. A bearish sentiment persisted in the global economy, and closer home, the tumbling oil prices certainly played a major role at micro and macro-economic levels to stem the runaway fiscal growth witnessed in many of our key markets since 2010. The regional construction industry remained stagnant mainly due to the slowdown in major project awards and project announcements.
Our strategy in 2016 will be extremely risk averse and highly selective in areas such as bidding, while pursuing projects with high margin potential and credible clients. We will explore options like strategic alliances with industry leaders to reduce our risk exposure and manage the growth of our backlog carefully to improve our profitability. Operationally, we will remain committed to the process of fiscal consolidation, discipline and austerity begun last year in light of the new realities of our region. The Engineering business will remain the key growth driver for DSI, and we will especially focus on improving our tendering and project delivery performance in promising local markets like UAE, Qatar and KSA while continuing with our focus on the pursuit of our growth plans in the region.
We will also dedicate material, knowledge and human resources to suitably enforce our rail business and we remain optimistic about the prospects of securing substantial rail projects in the region. We have secured strategic partnerships with global rail technology leaders who complement our historic experience and skills to improve our chances of winning substantial work related to the rail sector.
The source of our growth and progress remains our 21,000 strong workforce who continue to lead the industry with their unmatched skill, discipline, dedication, innovation and passion. We will continue to invest in our people and train them with the latest technology and innovations to retain our competitive edge in the market. I would like to offer thanks to our clients, partners and shareholders for their understanding and trust. We are inspired by your faith and your perseverance and remain committed to generating value in the DSI brand.
This year, we celebrate the 50th anniversary of the bold decision taken by Drake & Scull pioneers to move from the UK to the Middle East. The same pioneering spirit powers us today to evolve, adapt and take bold decisions in challenging times and ensure our success as the macro market environment improves. In the 135th year of DSI’s existence, we remain united and firm in our resolve to ensure we continue our historic legacy of People, Innovation and Passion.