Bildco examines Oman port to reroute supplies

• Considering site at Salalah port
• Company re-exports building materials
• Hormuz disruptions spur diversification

Abu Dhabi National Company for Building Materials (Bildco) is exploring the development of an integrated logistics centre at Oman’s Salalah port to support global supply chains for building materials.

The initiative is part of the company’s strategy of enhancing re-exports from the UAE to global markets, particularly to India, China and East Africa, through alternative trade corridors, Bildco said in a statement to the Abu Dhabi Securities Exchange.

The Salalah site will offer storage, re-export and shipping services.

Flexible and sustainable trade corridors are crucial for supporting industrial and commercial growth in the region, said Bildco chairman Rasheed Al Omaira.

The US-Israel-Iran conflict has led to supply chain disruptions due to the near-closure of the Strait of Hormuz since February 28.

The need to diversify supply chains, so traders in the region are less dependent on access through the Strait of Hormuz, was highlighted by Thani bin Ahmed Al Zeyoudi, the UAE’s minister of foreign trade, in an interview this week with AGBI.

“One of the main lessons here when it comes to the supply chain is that we will not be dependent on any country providing more than 50 percent of any commodity. We’ll make sure that there is a diverse stream and that there are other sources to bring the commodities from,” Al Zeyoudi said.

Abu Dhabi Integrated Investment Holding owns 80 percent of Bildco.

Bildco shares closed at AED1.7 ($0.46) on Thursday and are up more than 10 percent so far this year.