KUALA LUMPUR: Edgenta Arabia Ltd (EAL), UEM Edgenta Bhd’s wholly-owned subsidiary, hopes to strengthen its presence in Saudi Arabia with a 60 per cent equity stake investment in MEEM for Facilities Management Company (MEEM).
The investment was made through a share purchase agreement and shareholders agreement inked with Mohammed I Alsubeaei & Sons Investment Company (MASIC) recently.
MASIC is a leading Saudi investment company with investments spanning across financial services, real estate, and public and private equity.
It founded MEEM in 2017.
The proposed investment into MEEM is expected to be completed by the first quarter of 2023 upon fulfilment of the local regulatory approvals and conditions precedent of the agreement, UEM Edgenta, an asset management and infrastructure solutions company, said in a statement.
It also said that mega projects such as Neom, Red Sea, AMAALA and Qiddiya would be the catalysts for EAL and MASIC to co-develop world-class integrated FM (IFM) services in Saudi Arabia before expanding further into the broader Gulf Cooperation Council (GCC) region.
It noted that MEEM’s FM capabilities include the provision of hard and soft FM services, specialised and support services to commercial, industrial, education and residential properties in Saudi Arabia, with a workforce of over 150 employees.
Anchored by Saudi Arabia’s Vision 2030, Saudi Arabia’s FM market is expected to grow by a compound annual growth rate (CAGR) of 6.2 per cent to US$35 billion (US$1=RM4.63) by 2028, accounting for 50 per cent of spending in the GCC region.
"The investment of a 60 per cent stake in MEEM came at an opportune time as the company solidifies its footprint in Saudi Arabia as the new growth market.
"MEEM is the first of the many collaboration and partnership opportunities between UEM Edgenta and MASIC, with a focus on IFM and healthcare projects where UEM Edgenta’s strong credentials can be deployed across the local Saudi Arabia market,” said UEM Edgenta managing director/chief executive officer (CEO) Syahrunizam Samsudin.
Meanwhile, MASIC CEO, Hani Halawani said it looks forward to expanding MEEM’s capabilities in Saudi Arabia by leveraging on UEM Edgenta’s technology solutions in digital platforms and energy management programmes. - Bernama