UAE’s Gulf Capital Invests $25m In Egypt’s Amak Petroleum - Gulf Business
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UAE’s Gulf Capital Invests $25m In Egypt’s Amak Petroleum

UAE’s Gulf Capital Invests $25m In Egypt’s Amak Petroleum

The investment is expected to help Amak, a firm specialising in providing petroleum services, to fund its growth plans.

UAE-based private equity firm Gulf Capital has announced that it has completed an investment worth $25 million in Egyptian firm Amak Group through its regional fund Gulf Credit Partners.

Amak is provides petroleum services for the onshore and offshore sectors in Egypt along with drilling and workover service to oil companies.

The investment by Gulf Capital is expected to fund Amak’s growth plans, a statement said.

“Gulf Credit Partners’ investment will help Amak continue its strong growth at an exciting time for Egypt’s revitalised oil and gas sector,” said Karim El Solh, CEO of Gulf Capital.

“Amak’s strong position in the Egyptian oil and gas service sector, as well as its ambitious growth strategy and experienced management team, are strongly aligned with our Fund’s investment strategy.”

Ayman Abbas, founder of Amak, said: “This institutional investment from Gulf Capital will strengthen Amak’s capital structure, allow us to fund the rapid growth of the company and help improve overall corporate governance.”

The funding comes as the investor sentiment in Egypt’s oil and gas sector improves with the return of economic stability in the country post its presidential elections.

Meanwhile oil demand in the Arab state is expected to rise from 34.8 tonnes oil equivalent (toe) in 2013 to 45.5 toe in 2020. Over the same period, shortage of hydrocarbons in Egypt will grow from 657000 barrels oil equivalent (boe) per year to 28.2 million boe per year, the statement said.

In its attempt to bridge the supply-demand imbalance, the Egyptian government has taken various steps to attract further investment to the sector.

Recently, the government also reached an agreement with foreign oil firms to pay off all of its arrears by 2017, which in turn generated strong interest in the latest auction of exploration concessions by officials.

Amak too is positioned to benefit from the recovery and growth in the Egyptian upstream oil and gas sector, the company said.

Despite the political tensions, Egypt continued to be rated one of the most attractive private equity destinations in the region, according to a report by the MENA Private Equity Association.

“As the country transitions towards regaining political stability, private equity deal activity and value of investments made are gradually expected to return to levels experienced prior to 2011,” the report said.


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