Abu Dhabi – Mubasher: E7 Group plans to invest AED 182 million (approximately $50 million) in organic growth initiatives across its security solutions business segment, E7 Security.
The planned investments will enhance the group’s passport manufacturing capacity and enable its entry into the digital tax stamps segment, according to a press release.
This announcement follows the recent signing of a strategic partnership with Diletta, a German manufacturer of identity and security systems for government and national institutions.
With the tax stamps industry witnessing growth worldwide, E7 aims to back governments in curbing the illicit trade of excisable goods and boosting revenue generation.
Tax stamps support a range of areas, including the drive to eliminate illicit trade in tobacco products, with 68 countries party to the WHO Framework Convention on Tobacco Control’s supplementary Protocol to Eliminate Illicit Trade in Tobacco Products.
Meanwhile, E7’s planned production of digital tax stamps, which is set to commence in 2026, aligns with its objectives to diversify further in the high-margin security solutions segment.
The group will also invest in increasing its passport production capacity fivefold, with the planned capacity expansion to come online in 2026.
Ali Saif Ali Abdulla Alnuaimi, CEO of E7 Group, said: “The AED 182 million will be invested in areas with strong growth potential, adding capacity and capability in existing product lines and enabling us to bring new products to market.”
“The security solutions industry continues to deliver strong growth globally, with our technical expertise and track record opening doors across geographies,” Alnuaimi continued.
In the first quarter (Q1) of 2024, E7 Group signed customer contracts at a combined value of AED 77 million. In March, the company signed three security solutions deals worth AED 12.90 million to bolster its network in the UAE and Middle East.
During 2023, the group reported an 11% year-on-year (YoY) growth in revenue to AED 651.90 million, while the operational net profits hiked by 110% YoY to AED 142.50 million.
As of 31 March 2024, the ADX-listed company had cash and bank balances of AED 1.27 billion, providing a robust platform to invest in growth initiatives.
