SENAAT General Holding Corporation
UAE has been experiencing rapid economic growth over the years. This growth has created enormous opportunities for companies operating in the region. At the same time, it has posed some considerable challenges, especially in respect to operations and performance of companies as they strive to maximize their profitability while minimizing costs (ADCED, 2013). Senaat General Holding Corporation is among the largest industrial investment holding companies in UAE that is strategically-positioned to facilitate economic growth in the region. It is owned by the Abu Dhabi Government with primary mandate of creating, championing, promoting, and optimizing capital intensive assets (Senaat General Holding Corporation, 2017). It is important to understand how it is performing this mandate and whether it is attaining its key objectives. It is a critical case study for management students as it helps in providing an understanding about the role of companies, especially the state-owned companies in spurring economic growth of a country or a region.
SENAAT General Holding Corporation
Industrial investments have been cited as among the key pillars for the attainment of Vision 2030 in UAE. Senaat General Holding Corporation was established by the Abu Dhabi Government as a major vehicle for industrial investments with the mandate of championing, promoting, optimizing, and creating capital-intensive assets (Senaat General Holding Corporation, 2017). It is a major contributor to the realization of the Economic Vision 2030 in the region with its operations spanning across the four main industrial sectors including food and beverages manufacturing, building and construction materials, gas and oil services, and metals (Adced, 2013). The objective of this report is to evaluate the role of Senaat General Holding Corporation in aiding the realization of Vision 2030 in UAE. It will discuss the background of the organization by explaining each sectors and industries. Also, it will explain the reasons for which operations management approach is critical for of the industries.
It was established in 1973 as the “General Industry Corporation”. In 1979, it was incorporated as a public entity and in 2004, it was reincorporated to General Holding Corporation as a Public Joint Stock Company under the Abu Dhabi Government ownership. It later merged with Abu Dhabi Basic Industrial Corporation PJSC (ADBIC) to form an entity called Senaat with the view of strengthening its position within the industrial sector (Senaat General Holding Corporation, 2017). It has four main sectors; with the first one being metals concerned production and sale of natural metals to earn foreign exchange. The second one is building and construction materials which focus on spurring property development. The third one is food and beverages aimed at ensuring food security in the region, as well as surplus production for export. The final sector is oil and gas services focused on harnessing resources in these areas for export and local production (Senaat General Holding Corporation, 2017). Operations Management approach is important for each of the company’s sectors as it ensures effective and efficient controlling of the production processes, as well as the efficiency of business activities and operations involved in each sector (Shim & Siegel, 2009).
For this research, secondary data was collected from the relevant sources. Khan (2011) explains that secondary data are those which are collected by a different person other than the one who created them. They can be from sources such as government departments and websites of companies or organizations. The main advantage of this data collection method is that it is cheap and saves time (Khan, 2011). Information and data about Senaat General Holding Corporation was mainly collected from its website. The website contains relevant and credible information regarding the company’s history, operations, management, its social responsibility, and more importantly about how it is working towards achieving Economic Vision 2030. In order to obtain the relevant information, specific segments of the website were visited so as to understand issues such as the sectors that the company is involved in and how it is executing its mandate. Also, documents were downloaded from the website for analysis of the company’s financial and operational performance.
It was found out that the company has been in existence for the past four decades. It was reincorporated in 2004 as a Public Joint Stock Company owned by the Abu Dhabi Government. It later merged with the Abu Dhabi Basic Industries Corporation PJSC (ADBIC) under a new brand called Senaat. Since its reincorporation in 2004, it has invested more than AED 19 billion in sectors that are not oil-related (Senaat General Holding Corporation, 2017). It has ever since continued to develop world-class businesses that significantly contribute to the development of integrated national industries network that is instrumental in contributing to the economic performance of UAE. Also, it contributes to the technology and knowledge transfer (ADCED, 2013). It was also found out that through its companies that fall under the main industrial sectors, it has been able to contribute to the economic vision of the region. These companies are EMIRATES STEEL, AGTHIA, NPCC, AL GHARBIA, AL FOAH, ARKAN, TALEX, DUCAB, and DAC (Senaat General Holding Corporation, 2017). It was further found out that the company is at the center of Abu Dhabi Economic Vision 2030 which is a detailed roadmap for the long-term diversification and transformation of the economy of Emirates. Senaat General Holding Corporation plays a fundamental role in creating economic activities aimed at reducing the reliance on oil sector by developing industries that are knowledge-based (ADCED, 2013).
The analysis of the company showed that it has a notable track-record in creating companies through targeted acquisitions, large-scale Greenfield projects, as well as strong internal growth. It is through this operational management approach that it has been able to ensure it has a breadth of various end-markets and at the same time support its companies which have strongly demonstrated strong growth opportunities and resilience in cash flows. Additionally, it is evident that it has successfully executed its business philosophy of partially divesting ownership after they have become mature as it was the case with Arkan Building Materials and Agthia Group (Senaat General Holding Corporation, 2017). Such moves as the