RIYADH: Marine support services in Saudi Arabia are poised to grow, with Zamil Offshore Co. securing a funding boost from the Public Investment Fund for fleet expansion.
In a press statement, PIF revealed that it had acquired a 40 percent stake in the company, one of the largest Saudi-based offshore support vessel operators.
“PIF’s investment aims to further strengthen the capital base of Zamil Offshore to enable this Saudi private sector company to continue expanding its services and fleet to serve the growing demand for offshore support services, including wind power generation activities in the future,” said PIF in the statement.
According to PIF, this transaction is a part of the fund’s wider strategy to contribute to the development of the Kingdom’s energy base.
Bakr Al-Muhanna, head of the Transport and Logistics Sector in Middle East and North Africa Investments at PIF, said: “The offshore support industry remains strategically important to Saudi Arabia and will continue to play a crucial role in addressing the world’s energy demand.”
He added: “Our investment in Zamil Offshore will strengthen this vital sector, contributing to PIF’s wider efforts to develop Saudi Arabia’s energy ecosystem.”
Established in 1977, Zamil Offshore currently operates and manages more than 90 vessels in the Arabian Gulf.
The company also has two joint ventures, which include Zamil Mermaid, a firm that provides subsea diving services, and SBS Oceanics, which offers maintenance, modification, and upgrade services for offshore platforms.
“We are very excited to bring in PIF as an investor and strategic partner. Today’s announcement will usher in a new phase for Zamil Offshore’s continued growth and success and enable the company to carry on its journey of diversifying and expanding its operations to serve offshore projects in Saudi Arabia,” said Tawfiq Al-Zamil, chairman of Zamil Offshore.
PIF, Saudi Arabia’s vibrant financial engine, has been driving the Kingdom’s economic diversification journey over the past several years.
In January, the wealth fund increased its stake in Japan-based video game firm Koei Tecmo to 6.60 percent from 5.56 percent.
Similarly, in February 2023, PIF raised its stake in Nintendo Co. to 8.26 percent from 7.08 percent, making it the largest outside investor in the Japanese gaming company.
Last month, the fund also acquired a 23.8 percent stake in Middle East Paper Co., one of the leading manufacturers specializing in producing and recycling paper products in the MENA region.
Source: Arab News
