The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank, said it has acquired a strategic 30 per cent stake in Bahrain’s Falcon Cement Company (FCC), one of the largest cement producers in Bahrain.

Apicorp was established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC).

A closed joint stock company, FCC provides cement for use in large-scale projects primarily in Bahrain. FCC has a current capacity of 1,000 tonnes per day (tpd) and is in the advanced stages to double the production to 2,400 tpd by 2017.

According to Apicorp, the FCC deal capitalises on a raft of major industrial and infrastructure projects that are spurring activity and investment in Bahrain’s construction industry.

The kingdom’s total project pipeline, including long-term builds like the $3-billion King Hamad Causeway set to be completed around 2025, amounts to $72.7 billion, up 4.7 per cent year-on-year, according to the latest economic quarterly update from the Bahrain Economic Development Board.

This pipeline includes the $5-billion Bahrain Petroleum Company (Bapco) upgrade and expansion of the Sitra refinery; the $3-billion Aluminium Bahrain (Alba) Line 6 smelting project; Bahrain Airport Company’s $1.1-billion airport expansion project; and the $655-million offshore liquefied natural gas (LNG) terminal being commissioned by the National Oil and Gas Authority (Noga).

Dr Raed Al Rayes, the deputy CEO and general manager of Apicorp, said: "We are delighted to acquire a 30 per cent stake in FCC, Bahrain’s largest cement producer. We believe this is a high growth sector for Bahrain and the investment assists us in diversifying our investment portfolio."

The investment, he stated, is also a strong signal of Apicorp’s commitment to driving economic growth throughout the region. The deal was completed with regional partner, GFH Financial Group.

On the deal, Hisham Alrayes, the group chief executive of GFH, said: "We very much appreciate the support of Apicorp. In the first transaction between the firms, GFH and Apicorp have agreed to work together as strategic shareholders of FCC to enhance, expand and improve the business of the company, its valuation, and financial returns. We are confident that this collaboration will help support the continuous growth of not only Bahrain’s economy, but the region as a whole.”

Another regional firm, Integrated Capital, part of the Abu Dhabi Financial Group, bought a 10 per cent stake in FCC in 2016.-TradeArabia News Service