Emirates Post privatisation proposed

A proposal will be put to the board of directors next year to expand Emirates Post’s shareholder base, according to a top official.

“There is a definite move towards privatisation in the country. And Emirates Post now has the financial strength and the back up from its current owners to follow the same direction,” said Abdullah Ibrahim Al Daboos, director general.

“It will be up to the board of directors next year to decide the timing of the privatisation process.”

Incorporated in May 2001, Emirates Post is wholly owned by the UAE Government. It recorded a net profit of Dh100 million for 2002 on revenues of Dh243.7 million. The numbers represent a growth of 11 per cent and 6 per cent respectively.

In a statement, Ahmed Humaid Al Tayer, UAE Minister of Communications, said: “Emirates Post has proved that it can compete against global companies which are operating in the local market and even beat them, especially when it comes to practical solutions for the government and private sector.”

In 2002, Emirates Post handled an estimated 150 million letters, with incoming representing 75 per cent. The private sector generated between 65 to 70 per cent.

While the personal mail deliveries may have been on the decline, it was more than compensated by the over 90 per cent volumes represented by letters and packages for businesses.

Last year, postal income made up Dh211 million of the Dh243.7 million. A 0.37 per cent drop in expenditure was also had to total Dh147.61 million.

For 2003, the corporation is forecasting a net profit of Dh110 million (Dh77 million from operations) on projected revenues of Dh258 million.

It has also budgeted Dh78.46 for new projects – including facilities in Abu Dhabi, Al Ain, Dubai and Sharjah – that are to completed this year.

Added Al Daboos, “We are now considering setting up a third subsidiary, to handle logistics. A decision could be made in another two months, and could even be through a joint venture. There are a lot of potential partners who could be interested.”

Currently, there are two subsidiaries – Empost for courier services and Electronic Document Centre llc for electronically printing and delivering statements for clients, which include Standard Chartered, HSBC and Citibank.

On human resources, Emirates Post has 1,038 employees on its rolls, with 49 per cent being UAE nationals. At the management level, it has attained 100 per cent emiratisation.