DAMMAM — The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), announced the acquisition of a 30% stake in Bahrain’s Falcon Cement Company (FCC).
FCC is the largest and only integrated cement producer in Bahrain. The closed joint stock company provides cement used in large-scale projects for public and private customers primarily in the Kingdom. FCC has a current capacity of 1000 tons per day (tpd) and is in the advanced stages to double the production to 2400 tpd by 2017.
The FCC deal capitalizes 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% 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, Deputy CEO and General Manager of Apicorp, said: “We are delighted to acquire a 30% 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 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.
Hisham Alrayes, Group CEO, 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 PJSC, part of the Abu Dhabi Financial Group, bought a 10% stake in FCC in 2016. — SG
