UAE trading and investment firm Al Bogari Holdings upbeat on SL’s growth prospects

• Global bullion trading firm’s MD and Expolanka’s second largest individual shareholder Farook Kassim looking at new greenfield and listed equities investment opportunities
• Says fundamentally sound stocks undervalued hence attractive
• Keen to be early investor; meets Port City executives and proposes setting up of gold exchange at Intl. Financial Centre; great potential given India is world’s biggest gold consumer
• Moots idea of high security vault by Brink’s – world’s oldest and premier provider of secure logistics and security solution for precious metals 
• Believes Port City and International Financial Centre can be a success if Sri Lanka uses Dubai International Financial Centre as example
• Tips tourism and real estate as high growth sectors if SL can be more biz and investor friendly and pursue open policies, learning from success of UAE
• Farook insists Sri Lankan migrant workers deserve VIP treatment in times of pandemic

Farook Kassim, who is the Managing Director of Al Bogari Holdings, a Dubai-based trading and investment firm, is upbeat on Sri Lanka’s growth prospects and investment opportunities in both greenfield and listed equities.

In Sri Lanka via the Investor Bubble, which he hailed as a “very positive step, fantastic idea and a bold move by the Government”, Farook is exploring new investment opportunities in the upcoming Port City as well as the Colombo Stock Exchange.

“As far as the Colombo stock market is concerned, it is undervalued in my opinion hence it is attractive and we are looking at good buying opportunities of fundamentally sound companies,” said Kassim, who is also the second largest individual shareholder in the Japan SG Holdings-controlled Expolanka Holdings PLC, which is enjoying a record year amidst the COVID-19 pandemic.

Farook also identified tourism and real estate as high growth potential sectors of Sri Lanka provided the country becomes more investor friendly and pursues open policies, learning from the success of the United Arab Emirates where he has been living and growing his business for the past 46 years.

An old boy of Royal College, Farook migrated to UAE in 1975 when he and his uncle set up Al Bogari. 

Today the company has investments in the UK, Singapore and South Africa apart from Sri Lanka and specialises in the trading of bullion globally and supplying to Lankan export jewellery industry as well.

“We are proposing a physical Gold Exchange in the planned International Financial Centre in the Port City and I have introduced Brink’s the premier provider of secure logistics and security solutions offering services in more than 100 countries worldwide,” Farook told the Daily FT in a brief interview.

1859-founded Brink’s specialises in the secure transportation, handling and vaulting of precious metals and other valuables serving many of the world’s largest commercial and governmental organisations. Brink’s has appointed Leonard Perera as Country Manager for Sri Lanka, Maldives and Bangladesh.

Al Bogari works with Brink’s for its global business and the idea is for Brink’s to set up a high security vault in the Port City and serve its local and South Asian customers more efficiently. India is the world’s biggest market for gold and close proximity gives a competitive advantage for Sri Lanka as opposed to Indians going to Singapore or Dubai. 

At present Al Bogari works with Amana Bank which maintains a security vault. Imported gold is stored and sold as and when needed at real time prices which saves working capital for the export jewellery industry.

He was also of the view that Sri Lanka can learn best from Nepal as to how to develop the small-scale gem and jewellery industry with greater openness, simplified procedure ensuring better ease of doing business.  

Whilst noting that Port City will be a fantastic investment opportunity, Farook was of the view that to make the Port City and its International Financial Centre a success, Sri Lanka must use the Dubai International Financial Centre (DIFC) as an example.

“Sri Lanka and the Port City can be a huge success if the right model is pursued along with open policies,” emphasised Farook who is also an alumnus of Harvard Business School, Boston, USA.

Farook also plays a key role in promoting greater Sri Lanka-UAE trade, investments and tourism. He was the founder member of the Sri Lanka Business Council in Dubai and Northern Emirates, set up in 1991 and formally registered as a business council in 2004 under the umbrella of the Dubai Chamber of Commerce and Industry.

The SLBC is the only Sri Lankan organisation to have this status. He served twice as Chairman and his outstanding contribution to promote bilateral ties as well as the organisation saw him appointed as first Life Member of the Council.

He commended the dynamism of the new non-career Sri Lanka’s Ambassador in UAE Malraj de Silva as the best envoy he had seen since a diplomatic mission was set up in 1979. “Being a US-Sri Lanka dual citizen and having served previously in Oman, Malraj de Silva is a ‘people’s person’ and well aware about expatriates,” Farook added. He also commended the proactive role played by Consulate General Nalinda Wijerathna, Head of Chancery Subhashini Silva and the team.

“We saw how sincere and efficient they were when dealing with thousands of Lankan expatriate workers who wanted to return home owing to the COVID-19 pandemic. Despite constraints in resources and manpower, the Embassy and the Consulate worked tirelessly,” Farook recalled. On his own as well as via the Council and its members, desperate and needy Lankans were supported and repatriated. However he admitted there is more to be done.

Farook also insists that Sri Lankan migrant workers deserve VIP treatment in times of pandemic like the COVID-19 as they earn the highest valuable foreign exchange ($ 7 billion in 2020) for the country. “In Dubai we have 200 nationalities and during the pandemic they received priority from their countries,” he added.