Saudi Arabia to be a major focus area for Essar Group, which expects the region to have huge growth potential over the next few years.
Arabian Business
After kicking off work on its $4.5 billion integrated steel project, Indian conglomerate Essar Group is drawing up another round of mega investments in Saudi Arabia, which will see it investing in a port-related project in Ras Al-Khair and in its technology solutions company Black Box pumping in more investments for further expanding its business in the kingdom and GCC.
The infrastructure-to-energy group is also looking to set up its regional hub in the Saudi capital Riyadh in line with its ambitious plans to expand many of its businesses in the country and the wider region.
“The GCC and especially Saudi Arabia is a priority region for the group, and we will soon be further ramping up our presence with investing in building two dedicated berths at the port in Ras Al-Khair, near to our steel project site,” Prashant Ruia, Director of Essar Capital, told Arabian Business in an exclusive interview.
“Black Box, the group technology solutions company, will also be growing its business in a big way in the kingdom and beyond with making further investments to expand operations as well as to acquire businesses,” Ruia said.
Ruia, who is currently in Riyadh to attend the FII (Future Investment Initiative) Summit, however, declined to elaborate on the quantum of investments the group will be making in the near-to-medium term.
Essar Group’s investment plans in the port and technology sector come close on the heels of its accelerating work on its $4.5 billion integrated steel project in Ras Al-Khair, billed as amongst the largest Indian investments in the Middle East in recent times.
The group last month announced mandating Saudi-based Al Rajhi Bank (ARB) to assist it in raising funds from a clutch of local banks and global financial institutions, after it completed most of the raw material supplies for its 4 million tonnes (TPA) green steel project.
The proposed berths at the port in Ras Al-Khair will be for captive use of its upcoming steel project.
Saudi Arabia to be a major focus area for Essar Group
Ruia said Saudi Arabia will be among the major focus markets for Essar Group as it has tremendous potential and a robust pipeline of mega projects.
“We are confident the region is going to have huge growth potential over the next few years. We are committed to the Saudi Vision and will continue to evaluate opportunities to increase our presence as well as to make Saudi our regional headquarters,” he said.
Ruia said the group already has a presence in the region through its projects and technology businesses, and “with the success of the steel project, establishing a regional office in Riyadh would be the next logical step”.
Black Box which has an impressive list of global clients and added cybersecurity to its portfolio recently, has been supporting local companies on the technology adoption and implementation in Saudi Arabia and GCC and has grown its regional revenues to over $30 million in the last few years.
Project implementation business is another big opportunity for the group
Ruia said project implementation will be another sector which the group will be eyeing for expanding its operations in both Saudi Arabia and the wider region.
“When my father and uncle started Essar in 1969, the first business we built was an EPC company. Building state-of-the-art mega industrial complexes is at the core of Essar’s DNA.”
He said the group’s projects business is already involved in projects in the region and would bring its experience to further contribute to the growth of the region and realisation of Saudi Vision 2030.
“Our projects business is actively evaluating [more] opportunities in the region,” Ruia revealed.
Industry experts said Essar could be eyeing a pie in the innumerable number of upcoming non-oil sector projects which Saudi Arabia is pushing with hundreds of billions of dollars to diversify its economy.
Ruia is expected to meet several Saudi leaders at the government level, besides high-ranking officials, to discuss and explore future investment potentials in the country.
“The huge transition and focus on growth in the region is largely attributable to the dynamism of Saudi leadership. We have been working closely with the Ministry of Industry, Ministry of Investment, and Ministry of Energy in developing the steel project.
“The government support for the project and Essar has been overwhelming. We continue to work with all stakeholders and partners in the development of projects [there],” he said.
Source: Arabian Business