Al Khayyat Investments, a Dubai-based diversified holding company, has acquired 50 per cent stake in ALNO Middle East (AME).

AME is a producer of kitchens and wardrobes furniture in the Jebel Ali Free Zone, and the partnership will strengthen its ALNO international brand, leveraging Al Khayyat’s network and experience. It is projected that AME’s turnover will double annually in the medium term.

“In Al Khayyat Investments we have found the ideal partner for our strategy of dynamic growth in the booming markets of the Middle East,” said ALNO CEO Dr George Kellinghusen. “We will be leveraging the market expertise and business connections of our new partner to further consolidate the world-renowned ALNO brand. The Middle East represents a big market for our range of kitchens and wardrobes furniture.”

The purchase price has not been revealed. Both companies will make significant investments up to the end of 2009 in order to expand capacities at AME. The number of employees will increase from the current 122 to 195 by the end of 2009.

Al Khayyat Investments managing director Amer Al Khayyat said: "We foresee tremendous demand for the ALNO brand of kitchens and wardrobes as the construction boom across the region continues unabated. Demand for upmarket products for the home has been rising dramatically over the past few years, and we expect it to increase at a faster rate over the short-term."

Al Khayyat also plans a new joint venture to sell ALNO kitchens through lead shops it plans to open in Dubai first, and expanding later to the other emirates.

Al Khayyat Investments is a holding company based in Dubai, active in the development of large real estate projects and has a strong presence in the retail sector in the Middle East.

AME, earlier a wholly owned subsidiary of ALNO, has been producing kitchens and wardrobes furniture in the Jebel Ali Free Zone near Dubai since 2005. - TradeArabia News Service