$1.3bn infrastructure investment firm set up in Saudi
Riyadh, March 2, 2014
Saudi-based Abdulaziz Alsaghyir Holding Company has entered into a partnership with Abdul Mohsen Al Hokair Trading Group to set up a SR5 billion ($1.33 billion) company which aims to invest in infrastructure projects and services across the kingdom.
As per the agreement, the new entity, “Qudurat Development Holding Company” will focus primarily on airports management and operations, water, and renewable energies, said a company statement.
The new company is a reult of the ambitious expansion plans of Abdulaziz Alsaghyir Holding Company and Abdul Mohsen Al Hokair Trading Group, it stated.
The partnership is also in line with the strategy of broadening their base, developing their business and expanding into new sectors, he noted, which consequently enhances the Kingdom’s privatization efforts and strengthen the sector with huge investment opportunities, the company added.
"Qudurat has earmarked SR5 billion in the first three years of its operation to implement and manage technical-related projects in the infrastructure sector," stated Hisham Alsaghyir, the chairman of the new company.
The initial several billion riyal capital outlay is aimed at achieving a myriad of corporate objectives, such as maximizing the added value to national economy, establishing specialized companies in collaboration with international technical partners, transferring knowledge and technologies to the Kingdom and increasing the non-oil foreign investment in Saudi Arabia that would eventually create jobs for the country's youth.
Qudurat Holding chairman said: “In its first phase, the new company shall mainly focus on the Saudi market given the size of its infrastructure privatization sector and also in order to fulfill the local requirements. Nonetheless, it will expand its scope of activities to include the rest of GCC countries in the next phase,” he pointed out.
On the positive role that the new company can play in privatization of the infrastructure sector, Alsaghyir stressed that Qudurat will effectively contribute to the beneficial development of the projects. Moreover, he assured that the company will definitely attract foreign direct investment in advanced technology projects, thereby furthering the wheel of economy.
Besides, Alsaghyir also disclosed that Qudurat plans to acquire shares in different companies apart from establishing a company specialized in the fields in which it operates in collaboration with international technical partners.
According to him, Qudurat’s establishment is enshrined in certain aspirations that obliges it, in the next period, to concentrate on achieving qualitative addition to two important fields.
"The first is capitalizing on quality and excellent performance in all infrastructure projects under management. The second is creating a unique model integrating advanced technology and performance excellence by adopting the best accredited global standards," he added.-TradeArabia News Service