National Cement Company

A Dubai manufacturer with a substantial investment business

As of: 2026-06-30

National Cement Company (Public Shareholding Co.), traded as NCC on the Dubai Financial Market, manufactures cement and related products in Dubai. Its accounts also contain a substantial investment business. These two activities must be read together: sales describe industrial activity, while dividends and changes in investment values can dominate earnings and equity.

The company was established by a Dubai decree on 10 April 1968. This profile concerns the Dubai issuer, not other companies with similar names. Its latest interim statements reviewed here cover the six months to 30 June 2026 and carry a qualified review conclusion concerning the loan to its Sudanese associate. This is a material limitation on the reported asset balance, not a minor accounting footnote.

Business model and market

As of: 2025-12-31 / 2026-06-30

The industrial business converts raw materials into clinker and grinds clinker and other inputs into cement products. Its customers ultimately depend on construction activity. NCC reports two segments: cement and investments, the latter including financial assets, properties and the associate. All sales in the first half of 2026 were within the UAE; that does not mean all investment exposure is domestic.

Sales growth should be assessed alongside production volumes, product mix, input costs and collections. A rise in cement earnings cannot by itself explain the company's overall return because the investment segment follows different economic drivers.

Plant, capacity and products

As of: 2025-12-31 / 2026-08-31

NCC's operating base is in Al Quoz, Dubai. The 2025 sustainability report describes annual clinker capacity of approximately 1.2 million tonnes and cement grinding capacity of approximately 1.5 million tonnes. These are different stages of production, not additive finished-product capacity. The product range includes ordinary Portland cement, sulphate-resisting grades and ground granulated blast-furnace slag.

For 2025, NCC reported clinker output of 0.865 million tonnes and cement output of 1.261 million tonnes. Cement sales were also 1.261 million tonnes, versus 0.985 million tonnes in 2024. These annual operating quantities should not be presented as first-half 2026 volumes; the interim financial statements do not provide an updated equivalent production table.

Associate and investment perimeter

As of: 2026-06-30

NCC owns 25.43% of Berber Cement Company Ltd in Sudan, an associate engaged in cement manufacture and sales. It is accounted for using the equity method, not consolidated as a wholly owned subsidiary. NCC has fully provided for the equity investment. That treatment is separate from the loan receivable, which remains on the balance sheet.

The notes also describe an unquoted investment in a cement plant under construction outside the UAE that has been fully written down because a reliable fair valuation could not be obtained in the prevailing local conditions. It should not be counted as additional operating capacity. Investment properties comprise land and villas; their book value is distinct from management's valuation. Neither the associate nor portfolio holdings should be conflated with the Dubai plant.

Ownership and governance

As of: 2025-12-31 / 2026-06-30 / 2026-08-31

At 31 December 2025, Al Ghurair Private Company LLC held 42.83% and Al Ghurair Investment Company LLC held 29.10%. These are dated disclosed holdings, not a claim that the shareholder register remained unchanged after year-end. The corporate website identifies Mohamed Abdullah A. Al Ghurair as General Manager / CEO.

Related-party commercial activity is material to understanding governance. First-half 2026 cement sales to other related parties were AED 8.824 million. Such sales and the associate loan are separate exposures: an ordinary customer balance should not be described as the Sudan financing. Concentrated ownership also makes related-party terms and board oversight relevant to minority shareholders.

Annual and latest interim results

As of: 2025-12-31 / 2026-06-30

Amounts below are AED million. Annual flows cover the year ended 31 December 2025; interim flows cover six months, not the second quarter alone. The annual accounts were audited with a qualification; the interim accounts are unaudited and subject to a qualified review. Interim figures are not annual forecasts.

The first-half comparison shows why cement and investment earnings must be separated: revenue and operating profit rose, but net profit fell. Lower portfolio dividends outweighed the improvement in the industrial operation.

What changed in the first half

As of: 2026-06-30

Cement segment profit before tax increased to AED 29.073 million from AED 1.428 million; investment segment profit was AED 83.069 million versus AED 168.083 million. Segment profit is not the same measure as the operating-profit line in the income statement. The segment totals reconcile to company profit before tax.

Higher revenue was accompanied by lower utilities and other factory costs, although material and staff costs increased. The investment segment recorded lower dividend income and losses on fair-value changes recognised through profit or loss. This is not evidence that the cement operation deteriorated. Conversely, a strong headline profit in a dividend-heavy period is not a substitute for checking the plant's earnings and cash generation.

Portfolio and asset allocation

As of: 2026-06-30

At 30 June 2026, financial investments totalled AED 2,337.703 million, comprising AED 2,124.687 million of quoted equities and AED 213.016 million of debt instruments. Their geographical allocation was AED 2,240.346 million in the UAE and AED 97.357 million in Saudi Arabia. Investment geography is separate from cement sales geography.

During the first half, NCC entered a discretionary investment management agreement with a local financial institution covering equities and fixed income. Assets acquired under it are held for trading and measured through profit or loss. This introduces earnings sensitivity to market movements alongside the larger holdings measured through other comprehensive income. Neither unrealised revaluation nor the face amount of securities is equivalent to immediately distributable cash.

Cash, liabilities and commitments

As of: 2026-06-30

At 30 June 2026, assets were AED 2,967.808 million and equity AED 2,861.774 million. Bank balances and cash of AED 45.462 million included AED 30.000 million in fixed deposits with initial maturity over three months; cash and cash equivalents were therefore AED 15.462 million. At year-end 2025 the corresponding broad bank-and-cash balance was AED 256.847 million.

The interim balance sheet shows no bank-borrowing line, but this does not mean no obligations: total liabilities were AED 106.034 million. Financial investments of AED 118.129 million were pledged against unused banking facilities, and bank guarantees were AED 2.128 million. Operating cash inflow was AED 50.792 million. Cash purchases of property, plant and equipment were AED 5.412 million. Investment purchases and dividends paid, together with deposits released, explain why bank balances moved differently from industrial earnings.

Sudan loan and the qualified review

As of: 2026-06-30

The carrying amount of the associate loan remained AED 288.213 million at 30 June 2026. It was due for recovery by October 2019, and the associate defaulted on several payments. Management refers to collateral, the plant's continued operation and a proposed revised repayment arrangement in supporting its conclusion that no further reduction was required. A proposed amendment is not a completed restructuring.

Grant Thornton could not obtain sufficient appropriate evidence concerning the balance's existence and accuracy and could not determine whether adjustments were necessary. The annual audit had also been modified on this matter. The qualification is not cancelled by management's assessment of collateral. Equity investment impairment, suspended interest and the remaining loan are distinct accounting items; none should be presented as proof of cash recovery.

Dividends and corporate developments

As of: 2026-06-30

The general assembly on 16 April 2026 approved AED 89.700 million, or 25 fils per share, for the 2025 financial year. The first-half cash-flow statement records AED 89.700 million of dividends paid. This is a completed distribution reported in the period, not a forecast yield or a commitment for the next year.

The same meeting approved a transfer of AED 78.331 million from general reserve to retained earnings. A reserve transfer changes equity presentation rather than generating operating cash. The new discretionary portfolio mandate is another important capital-allocation development; it should not be described as an acquisition of a cement subsidiary.

Strategy and risks to monitor

As of: 2025-12-31 / 2026-06-30

The company's sustainability materials emphasise efficiency and lower-impact production. These are management priorities, not guaranteed earnings improvements. In editorial terms, the useful industrial indicators are output, sales volume, energy and raw-material costs, product mix and cash collection. Expansion claims should be tied to an announced project, budget and timetable rather than inferred from unused capacity.

Key exposures are UAE construction demand, energy-intensive production, customer concentration, investment-market volatility and recovery of the Sudan loan. One customer exceeded 10% of first-half 2026 revenue. Management reported no known direct adverse operational impact from the regional conflict at the statements' issue date, while warning that prolonged disruption could affect trade, logistics and markets. That dated assessment is not a guarantee against subsequent effects.

Official business contacts

As of: 2026-08-31 / 2026-06-30

Website: https://nationalcement.ae/ . Investor relations: https://nationalcement.ae/investor-relationship/ . Corporate telephone: +97143388885. General email: cement@nationalcement.ae. Location: Al Quoz Industrial Area 3, Dubai, UAE. Postal address: P.O. Box 4041, Dubai. These are public corporate channels, not personal employee contacts.

Source dates and scope

As of: 2025-12-31 / 2026-06-30 / 2026-08-31

The operating-capacity, annual production and ownership descriptions use the 2025 integrated report. Financial position and recent developments use the interim statements to 30 June 2026, authorised on 13 August 2026. Public corporate contacts were checked on 31 August 2026. Page references refer to physical PDF pages. This original profile is a business explanation, not an audit, valuation or investment recommendation; the reported qualification remains material.

Sources

1. A · Source A · 2025-12-31
2. H · Source H · 2026-06-30; issued 2026-08-13
3. C · Source C · 2026-08-31