The FINANCIAL — Arab giant RAK-IA with its sister company Rakeen plans to build a cement plant in Georgia. Working procedures are to begin in a month. Several million dollars will be invested in this project. The plant will be situated near Tbilisi, and the efficiency of the factory will be 1,200,000 tonnes a year, according to the company.
“RAK-IA’s sister company Rakeen is actively studying the market in Georgia for processing cement and building a cement plant here. Feasibility studies are coming to an end and in a month our colleagues will come here to start this business,” Dr. Khater Massaad, Chairman of the RAK-IA Board of Directors, declared to The FINANCIAL.
“The cement plant will be situated near Tbilisi, in the direction of Bolnisi or Marneuli. We plan to invest several millions in this project and the produced product will be for the local market as well as export,” Zaza Mikadze, Director General of RAK-IA in Georgia, noted.
RAK-IA has been working in Georgia since 2006, and is undertaking several important projects. Despite the current difficulties, it is continuing to invest in Georgia. Work on all its projects is underway and it is hoped that these will be completed according to their original timetables.
“We have several projects, as you know in Georgia. RAK-IA has a 51% stake in Poti Sea Port and we are also interested in the investments being made by Rakeen, sister company of RAK-IA. To our observations the working procedures of the shopping malls, hotels and Tbilisi Heights in Tabakhmela are continuing as normal. All these projects will be finished, as intended by the company,” Massaad noted.
RAK-IA is the owner of 51% of Poti Sea Port. Serious work to develop the Poti Port infrastructure has already begun. This will involve increasing its operational capacity, building terminals and new docks, and implementing new technologies. USD 200 million has been allocated for this direction.
“The working process in the port of Poti is getting back to normal. Poti requires several quick works anyway; in particular a jetty must be built as soon as possible and work on the building of this jetty will begin in a week,” said Massaad. “We got contacted to the Dutch company Boskalis, which will provide services relating to the construction in Poti.”
When RAK-IA bought 51% of the Port of Poti, there was an agreement that they should provide the port with more equipment which would increase the capacity of container traffic.
“In accordance with that we are mounting two big cranes in the port and these procedures will also be finished in a week,” claimed Massaad.
RAK-IA also owns the environs of Poti Sea Port, an area of 300 hectares, and the construction of a Free Industrial zone there is underway.
During August Poti Port became one of the main targets of Russian aggression and suffered serious damages and losses as a result of air raids. By the most recent estimations the port suffered a material loss of approximately GEL 272, 000. To this should be added the loss the port received due to its temporary inability to function, estimated to be approximately GEL 2 million.
Contractor companies also suffered serious losses. Three of their employees were killed and overall they lost more than GEL 1 million.
The first stage of construction of the Free Industrial Zone has already started. This involves project formulation and piling. Winnowing, levelling, draining marshland, and fencing.
Two Russian Army checkpoints, with troops and heavy armed vehicles are deployed on this territory at present. Due to this work has been temporarily suspended. It will be resumed as soon as the Russian armed forces leave. Under these circumstances the completion of this stage of work will presumably be delayed.
“The Free Industrial Zone is very important for the country’s further development, but unfortunately Russian troops still remain there. As soon as they leave the place we will begin active work in this direction. I think that we will have to show more effort in attracting the attention of foreign investors and industrialists after all, but we already stated this and so must bring this project to its logical end,” Khater said.
Rakeen Development is continuing to operate successfully, a company which carries out innovative and prestigious projects in Georgia. In mid August an extra GEL 11 million investment was made in these current constructing projects, Uptown Tbilisi and Tbilisi Heights.
“We hope that Georgia will soon return to its usual condition, the political environment will stabilize and positive dynamics in the social and economic development of the country will continue,” said the Chairman of the RAK-IA Board of Directors.
Director General of RAK-IA in Georgia stated that RAK-IA projects will play a very significant role in the development of the country’s economy.
“RAK-IA is also actively involved in developing agriculture in Georgia, and is making investments in this sphere. In the village Mukhrovani, 12 kilometres east of Tbilisi, a facility is being developed for growing different types of corps, breeding fish and producing honey. We hope they will be a guarantee of Georgia’s progress and welfare,” Mikadze said.
“The RAK Ceramics Shop sells top quality ceramics, bathroom items and decorative ceramics in Tbilisi. RAK Ceramics is very popular around the world. In the near future it is intended to launch RAK Ceramics Enterprises Georgia, which will produce goods for the local market as well as for export,” Mikadze added.
Rak Investment Authority (Ras Al Khaimah Emirate of the United Arab Emirates) is one of the biggest investors to enter Georgia in 2006, arriving with USD 2 billion in investment capital.
From April 2008 RAK-IA became the owner of 51% of Poti seaport, making a USD 80 million initial investment. At this time RAK-IA started constructing the necessary infrastructure around Poti Sea Port for the creating of a free Industrial Zone (on 300 hectares of land, with USD 10 million in initial investment).
RAK-IA intends that Poti will become one of the most strategically important cities in the Caucasus region, profitable for the world’s leading companies and enterprises and international investors, to enter. Infrastructure will be developed and thousands of new jobs created and this will obviously influence not only the city itself but the country’s general economic development.
Rakeen RAK-IA is the biggest development company in the Ras Al Khaimah Emirate. The company was established in the United Arab Emirates.
Rakeen Development is involved in important projects in Tbilisi, (Uptown Tbilisi, Mtatsminda Recreational Park), Tabakhmela (Tbilisi Heights) and Vardzia. Future projects in Batumi and Gonio are planned. All Rakeen projects seek to introduce new lifestyle standards and create in Georgia a world level tourist infrastructure.
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