A consortium of Gulf-based investors led by regional private equity firm First Equity Partners (FEP) has acquired a 50 per cent stake in Oryx Industries, a major construction materials firm based in Fujairah, UAE, said a report.

FEP and its strategic partners had collectively committed Dh500 million ($136 million) to the venture in December last year, reported the Gulf Times.

The initial acquisition of a 50 per cent stake will be followed by a full acquisition by the end of the first quarter this year, it added.

The consortium of investors who have joined forces with FEP and State Holding to execute this acquisition include Oryx Industries chairman Sheikh Abdulla Al Sharqi, Rawabi Holding (Saudi Arabia) and Al Waab Real Estate (Kuwait), it stated.

Established in 2007, State Holding focuses on Mena and Europe-based investments, primarily in the industrial and real estate sectors.

The acquisition of the Fujairah firm supports the ambitious expansion plan of the construction materials producer, which has delivered robust growth in the recent past.

Oryx is a regional industry leader in the production of aggregates and ready-mix. It holds a 50 per cent share of the ready mix concrete market in Fujairah and a 20 per cent share of Fujairah's aggregate export market.

It also capitalises on the GCC construction boom, driven by significant investment in large-scale real estate and infrastructure projects, such as the Dubai World Expo 2020 and Qatar World Cup 2022. This is set to boost the demand for imports of construction materials in coming years, said the report.