DUBAI: Egypt’s EFG Hermes is working on a $500 million merger and acquisition in Saudi Arabia and expects more deals to come out of the kingdom this year, especially from the private sector, its head of investment banking told Reuters.
Saudi Arabia has made attracting greater foreign investment a key part of its economic Vision 2030 plan as it tries to diversify the economy away from its reliance on oil.
The kingdom’s impending inclusion in the FTSE Russell emerging markets index this month is expected to draw billions of dollars of foreign fund flows.
“Saudi I think will be very busy,” Mohammed Fahmi said, on the sidelines of the bank’s investment conference in Dubai which is taking place this week.
“I’m seeing a lot of RFPs (request for proposals) coming from Saudi for IPOs... Private sector companies looking to go public, which I think is a valuable thing.”
The bank is also advising on an initial public offering (IPO) in Saudi Arabia, Fahmi said, but would not give any more details.
EFG Hermes is one of the banks advising on the potential $1 billion listing of Fawaz Alhokair Group’s Arabian Centers Company expected in the second quarter, Reuters has reported, although EFG has declined to comment on its role.
Another executive at EFG Hermes told Reuters in December that the investment bank was working on a major M&A deal in the health sector in Saudi Arabia.
In addition, Fahmi said there were deals underway in the automotive, banking, and facilities management sectors in the kingdom and in the United Arab Emirates.
In Egypt, EFG Hermes is working on a potential fourth quarter $300 million IPO, Fahmi said.
Another IPO for state-owned Alexandria Container and Cargo Handling may occur as soon as the second quarter of this year, Mohamed Ebeid, co-CEO of EFG Hermes Investment Bank told Reuters. EFG Hermes is managing the sale along with Citigroup.
Egypt this week revived its privatization program, which has lain dormant for more than a decade, with the sale of a 4.5 percent stake in tobacco monopoly Eastern Company, which EFG adivsed on.
EFG Hermes is also working on a number of IPOs with private companies in Egypt, Ebeid said, mostly on the industrial side.
EFG Hermes advising on $500m M&A deal in Saudi Arabia
EFG Hermes advising on $500m M&A deal in Saudi Arabia
- Saudi Arabia has made attracting greater foreign investment a key part of its economic Vision 2030 plan as it tries to diversify the economy away from its reliance on oil
- EFG Hermes is one of the banks advising on the potential $1 billion listing of Fawaz Alhokair Group’s Arabian Centers Company expected in the second quarter
Saudi environmental compliance sector unveils opportunities worth over $8bn
RIYADH: The Invest Saudi platform offers specialized opportunities with expected revenues exceeding SR30 billion ($8 billion), according to the National Center for Environmental Compliance.
In a statement, the center invited local and international investors to seize the listed opportunities and benefit from various incentives, ranging from administrative support to direct financing.
Saad Al-Zubaidi, executive director of business development, explained that this market size reflects the specialized nature of the environmental compliance sector as a supporting sector for all economic activities.
Sectors such as industry, energy, mining, construction, services, and infrastructure rely on it to comply with environmental regulations and enhance operational efficiency.
Incentive and financing packages
The center, in integration with various government entities, is working on developing comprehensive incentive packages for investors in the field.
These packages include direct financing tools, soft loans, and guarantee programs, in addition to regulatory and procedural enablers aimed at accelerating the investment cycle and reducing operational risks.
The payback period for investments starts from 4 years and does not exceed 7 years at most, according to the center.
The current market size stands at SR14 billion, according to Al-Zubaidi, who expects it to double within 5 years.
The market diversifies across fields including the manufacturing of pollution control systems, the manufacturing of air and water quality monitoring devices, soil and groundwater rehabilitation, and building specialized technical capacities in the environmental field.
Trend toward localizing environmental technologies
Al-Zubaidi confirmed that the announced opportunities have had their preliminary studies completed and are available for investors to review their details and to complete technical and financial feasibility studies according to various business models.
The focus is not limited to maximizing economic return but extends to localizing environmental technologies, transferring knowledge, and building local value chains capable of meeting the growing demand across various sectors.
