Gulf Capital, one of the leading alternative asset managers in the Middle East, has completed a $25 million investment in Amak Group, a leading provider of petroleum services for the onshore and offshore sectors in Egypt.

The investment was made through Gulf Credit Partners, which the credit and mezzanine business of Gulf Capital which provides financing and growth capital to fast growing companies in Mena and Turkey.

Dr Karim El Solh, chief executive officer of Gulf Capital, said: “Gulf Credit Partners’ investment will help Amak continue its strong growth at an exciting time for Egypt’s revitalised oil & gas sector.

“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. Gulf Capital is proud of demonstrating its confidence in the Egyptian economy by making several investments in Egypt this year through both its private equity and credit businesses.”

Underinvestment in Egypt’s upstream segment over the last three years has held back growth and seen domestic consumption catch up with production. Oil demand is expected to increase from 34.8 million tonnes oil equivalent (TOE) in 2013 to 45.5 million TOE in 2020. Over the same period, it is estimated that shortage of hydrocarbons in Egypt will grow from 6,57,000 barrels oil equivalent (boe) per year to 28.2 million boe/year.

An improving outlook with regards to political stability in Egypt has improved investor sentiment and encouraged investment in the country’s oil & gas sector. In its attempt to bridge the supply-demand imbalance, the Egyptian government has taken steps to attract further investment to this strategic sector. In particular, the government has reached an agreement with foreign oil firms to pay off all of its arrears by 2017.

This strategy already appears to be paying dividends, with the latest auction of 22 oil & gas exploration concessions drawing substantial interest from international oil multinationals, according to a statement.

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, all vital components to the continued success of Amak.”

Walid Cherif, managing director of Gulf Credit Partners stated: “We are thrilled with this seventh investment of the Fund and its success in deploying over 70 per cent of its capital in thriving and fast growing businesses. Our investment in Amak represents a new milestone for the Fund as we further diversify our portfolio by geography and industries. Gulf Credit Partners is today invested in some of the fastest growing and most defensive industries across the region, including healthcare, education, power and oil and gas services.”

Dr Mohamed Farouk, Chairman and CEO of Amak said: “Gulf Capital has shown great flexibility in tailoring a unique financing solution that meets our strategic growth needs. This institutional investment will assist Amak in achieving its target of becoming the leading provider of integrated oil and gas services in Egypt.’ – TradeArabia News Service