Abu Dhabi Ship Building’s (ADSB) larger focus on non-industry specialised craft has insulated it from the ravages of the global economic recession, the company says.

The company attributes its resilience to the focus on workboats and specialised military and commercial vessels rather than on container ships, tankers and other vessels servicing industries hardest hit by the recession.

It says the Middle East’s shipbuilding sector was one of a few in the world that managed to not only stay afloat but remain productive in the downturn. 

“Although the Middle East is not commonly associated with shipbuilding, it is actually home to various commercial maritime hubs with the UAE having the most concentrated number of maritime facilities,” commented ADSB general manager Mohammed Al Junaibi.   He recalled that the UAE had a particularly rich shipbuilding history. Today, the UAE’s fleet ranges from fishing boats to large commercial vessels and military craft.

“Although the country is considered a centre of Gulf shipbuilding, local industry has yet to achieve full maturity and thus offers huge growth opportunities. ADSB was established to ensure that the UAE’s shipbuilding sector maximises its potential,” said Al Junaibi. Abu Dhabi Ship Building is currently the UAE’s largest shipbuilder,” he added.

Founded in 1996, 40 per cent of the Abu Dhabi-based public joint stock company is owned by Mubadala Development Company, the Abu Dhabi Government (10 per cent) and various UAE citizens (50 per cent). Abu Dhabi Ship Building currently employs over 1,200 personnel.

Through its shipyard in the Mussafah Industrial Area, the most modern maritime facility of its kind in the Arabian Gulf, ADSB handles more than 200 repair projects each year.  The yard is the only one in the region capable of building, refitting, repairing and upgrading complex naval warships. It can deliver vessels of up to 80 metres in length with a maximum 20-metre beam.

Four markets served
The GCC’s premier shipbuilder serves four separate market segments: naval/military ship construction; naval ship repairs, refits and upgrades; commercial ship construction; commercial ship repairs. It specialises in work involving steel, aluminium alloy and composite materials, thus offering a unique flexibility to build any vessel that a customer may require.

“Our commercial ship building and repair capabilities have become highly sought after in the Gulf, which has a thriving shipping and logistics trade,” commented Al Junaibi. The company’s advanced facilities, which include a 2,000-tonne Syncrolift and a 500-tonne Travelift to lift and lower vessels in and out of the water, are preferred by the region’s commercial offshore operators and ship owners. Through ventures with various specialist international partners, ADSB builds all kinds of vessels for the commercial marine industry, including tugboats, pilot boats, work boats, supply and crew boats, oilfield service vessels, dredgers, and coastal tankers.

A value-added offering of the company is its complementary workshops, which support various services such as fabrication, outfitting, piping, calibration, blasting and painting, and machining, among other things.

In 2009, the yard posted a net profit of Dh114.39 million ($31.2 million) on revenues of over Dh1.16 billion. It also reported total assets of over Dh2.2 billion to surpass 2008 figures by 29 per cent.

“This strong performance validates the company’s growth into a valuable and strategic asset not only for Abu Dhabi but also for the entire Gulf region,” said Al Junaibi.

“Through ADSB’s leadership, the Emirates will continue to assert its dominance in Gulf naval shipping services and maintain its status as a global shipping hub,” Al Junaibi concluded.