Afkar Holding Co. announced today that it is seeking licenses from Kuwait’s Public Authority for Industry for three major petrochemicals projects.
The projects were among nine opportunities presented at the Downstream Petrochemicals Industrial Investment Conference hosted by Gulf Investment Corporation and the Industrial Bank of Kuwait in December last year.
The Chairman & Managing Director of Afkar Holding Co., Mr. Saleh M. Al-Yousef, said the company has been active in identifying major investment opportunities in the fields of petrochemicals and industrial services.
“Afkar recently signed an agreement with strategic industrial investors in Saudi Arabia to establish an industrial company in the Kingdom with a SR 122 million capitalization,” Mr. Al-Yousef said. “The company will own Zulfi Welding Electrodes Factory Co. Ltd. and other projects in Saudi Arabia.”
“Afkar is targeting investments ranging between KD 10 million and 50 million in the petrochemical sector, and between KD 5 million and KD 15 million in industrial services. We are focusing on investments that meet world-class specifications and the provisions of Islamic Shari’a law.”
Al-Yousef said the company is well positioned to take advantage of significant long-term investment opportunities being created in the Middle East and North Africa.
“With energy demand rising by 50% in the next 25 years, the region can expect to see a long-term economic boom,” Mr. Al-Yousef said. “As the Middle East is home to 62 per cent of the world’s oil reserves, there are likely to be major investment opportunities in the region in the fields of petrochemicals and industrial services”.
“The projected total oil and gas investment from 2004 until 2030 is estimated at one trillion dollars, and there will be considerable additional investment in related industries.”
Al-Yousef said Afkar Holding Co. would invest mainly in the Gulf region and in India, Turkey, China and other countries.
“Afkar's investments will be distributed as follows; 44 percent in petrochemicals, 28 percent in industrial services, and 28 percent in supporting services,” Al-Yousef continued.
Gulf Investment House is the issue manager of Afkar Holding Co. and has undertaken to directly invest 10 to 20 per cent in Afkar's capital. Among its strategic partners are the Commercial Real Estate Co. with 15 per cent, Kuwait Finance House with 10 per cent and Jiblah Holding Company with 5 per cent. The Company continues to receive applications from companies and individuals for subscription in private placement which targets a new and more extensive client base.
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