Dubai: Emirates Group subsidiary Transguard, a security and other outsourcing services provider in the United Arab Emirates, is considering expanding into neighbouring Arab Gulf States, including providing airport security services in Saudi Arabia.
Abdullah Al Hashimi, Chief Executive of Transguard Group, said in an interview this week at Transguard headquarters in Dubai Airport Freezone (Dafza), the company is looking at expanding into Saudi Arabia to offer security services at airports in the country. “That’s what we’re looking to,” he said.
Saudi Arabia is slowly liberalising its aviation sector, including plans to allow two new airlines to start operating domestic flights in the country, while some units of national carrier Saudi Arabian airlines (Saudia) have already been partially privatised with plans for more. Al Hashimi said Transguard is also looking at other Gulf markets but declined to provide specific details, including which countries.
He said Transguard is considering expanding all of its services “from security to FM (facilities management)” in the Gulf and that the company has spent six months trying to enter one neighbouring country.
A decision on the expansion is likely to be made at the end of this year or early 2016 when management submits a five year growth strategy to its shareholder. Transguard is owned by the Dubai government through the Emirates Group.
John Nolan, Managing Director, said Transguard is looking at a “number of opportunities” in the region that he said could be launched as joint ventures.
“To operate in this part of the world you want to have a local partner in each territory,” he said.
Established in 2001, to provide services to Emirates airline, Transguard now provides facilities management, cargo handling, cash delivery, outsourcing, training, security services and recruitment services in the emirates.
On November 2, Transguard reported a near doubling of profit to Dh106.6 million, while revenue grew 34 per cent to Dh1.03 billion. Nolan said he expects revenue to continue growing at a similar rate but that regional “challenges” could see weaker profit growth next March when Transguard reports its full-year financial results.
