By: Amr Adel
Dubai – Mubasher: Depa has several expansion plans in external markets in 2015, according to two officials at Depa Ltd., adding that these plans are part of its strategic plan to diversify its presence geographically while cutting down on risks.
The NASDAQ Dubai-listed company is targeting several markets in the coming period in south Asia, Africa and the Commonwealth of Independent States (CIS), the two officials told Mubasher in an interview, adding that GCC countries are at the top of Depa’s expansion plans particularly Kuwait and Oman.
The Kuwaiti market is seeing several infrastructure projects, while the Omani market is awaiting the construction of several new hotels and hospitality projects, they revealed, noting that there is less competition in the Omani market.
The officials also said that one of the markets the interior contracting company is currently focused on is Sri Lanka, where there are ongoing negotiations related to the renovation of major hotels.
Sri Lanka is currently witnessing an unprecedented economic leap backed by the tourism sector and the growing demand on hotels. According to the Sri Lanka Tourism Development Authority (SLTDA), there are 104 hotels currently under construction.
Depa is currently working on two main aspects, said Fawad Zafar, group budgeting and analysis manager at Depa, adding that the first focuses on a series of operations in the UAE and the Middle East alongside boosting activities in Europe and Asia.
The second aspect involves Depa’s expansions in new geographical areas by entering emerging markets with high marginal profits in Asia, Africa and the CIS.
Depa is trying to benefit from the growing activity in Dubai’s hospitality sector, especially in the period preceding the Expo 2020 international exhibition, Zafar told Mubasher, indicating that the hotel sector’s preparations in the emirate are backed by recent notable investment activity both in large and small-sized projects.
Depa plans to play a major role in UAE markets particularly as many hotel projects reach the stage of internal preparations, Zafar said in the interview, noting that there are many other projects and hotels that plan to renovate their interiors in the coming period.
There are a number of projects that are expected to see the light in the coming five years, he added.
Meanwhile, Depa marketing manager Eva Sieburg said that the interiors company expects to complete its Kempinski Hotel & Residences Palm Jumeirah project in early 2016.
Depa commenced working on the project in the third quarter of 2014, she said, noting that the renovation works for Novotel World Trade Centre Dubai were completed last month. The hotel is fully-operational now, she added.
Depa’s project in Singapore is going as planned and according to schedule, Sieburg told Mubasher, adding that it is expected that the project will be completed by the end of 2015.
The company’s Asian arm Design Studio Group recently won its largest contract in Asia at a value of $220 million to carry out renovation works for a building with furnished apartments and large office spaces in Singapore.
In 2014, Depa succeeded in completing all décor and preparation works in Sheikh Khalifa bin Zayed Hospital in Casablanca, Morocco at a total cost of $100 million. The project was inaugurated by Morocco’s King Mohammed VI and Abu Dhabi ruler Sheikh Mohammed bin Zayed Al-Nahyan last week, she added.
Sieburg revealed that Depa is currently working on a joint project between its subsidiary Depa Industrial Group and Parker Company to execute preparation and furnishing works at Radisson Blu hotels in Maputo, Mozambique and Maasai Mara, Kenya.
Depa plans to increase its revenues by completing several projects in 2015
The company’s revenue stakes are divided into 30% for Asian markets, 25% for the UAE, 23% for the GCC, excluding the UAE, 19% for Europe and 3% for other countries, Zafar said.
Depa has not yet announced its financials for 2014 but it is expected to do so in early April.
Translated by: Nada Adel Sobhi
