Dubai-based Sharaf Group plans to build a Dh1 billion ($272 million) cement factory in Habbab following an agreement with the government of Fujairah.

The company's vice-chairman, Sharafuddin Sharaf, said

The 350,000 sq m factory will produce two million tonnes of cement per year initially, and double its capacity after expanding its production area by another 513,000 sq m, said a Khaleej Times report.

Yousuf Sharaf, managing director of Sharaf Group, said the group is now talking to strategic investors and international companies to finalise the project, whose construction will take more than two years.

"The project site in Habbab contains the raw material needed, called limestone, and its reserves are sufficient for the plant's life," he said.