UAE’s NMDC has created a new logistics unit, offering services outside of construction and industry

Dec 06, 2024 at 6:56 AM

UAE’s NMDC has created a new logistics unit, offering services outside of construction and industry

The National Marine Dredging Company (NMDC) from Abu Dhabi announced on Wednesday that it has started a new business unit. This unit will offer logistics and technical services to industries outside of construction and industrial sectors.

New NMDC Division

NMDC has launched a new division called NMDC LTS, which will manage and use the company’s marine support crafts, technical skills, and equipment to provide services to other industries.

According to NMDC CEO Yasser Zaghloul, this step will help the company better meet the specific needs of its clients.

This new division is NMDC’s fifth subsidiary. The other four are NMDC Dredging and Marine, NMDC Energy, NMDC Construction (formerly Emirates Europe), and NMDC Engineering.

The LTS division aims to offer cost-effective and innovative solutions through partnerships, collaboration across industries, and the use of AI to improve efficiency.

Supported by Alpha Dhabi Holding, part of International Holding Company (IHC), NMDC is a major player in the marine and energy industries.

Diversification Plan

NMDC plans to expand its business in Southeast Asia, India, and Africa. In an interview with Forbes Middle East in October, Ashish Khandelwal, Senior Executive Director, talked about NMDC’s efforts to grow by offering more services, especially through a new company focused on marine logistics.

He also mentioned that they have made an offer to buy a business in the UAE’s energy sector that deals with operations and maintenance.

Additionally, NMDC is looking into new construction projects, like tunneling, piling, and improving the ground, to increase its share of the market.

Financial performance

NMDC’s revenue for the first nine months of the year grew by 68%, reaching $5 billion (AED 18.5 billion). This increase was due to the company’s growth across different areas and the successful IPO of NMDC Energy. The company’s profit also rose by 45%, reaching $596.8 million (AED 2.2 billion), thanks to strong performance and expansion into new projects.