Kingdom’s Petchem industry will adjust to energy price rise

Updated 29 December 2015
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Kingdom’s Petchem industry will adjust to energy price rise

RIYADH: Saudi Aramco’s Chairman Khalid Al-Falih said he is confident that local industries, including the Saudi petrochemical sector, would adjust to the rise in domestic energy prices and remain competitive.
Earlier, the government said it was hiking prices for fuels, water and electricity as well as gas feedstock used by industry, as part of subsidy reforms designed to help state finances cope with low oil prices.
The price of methane was raised to $1.25 per million British thermal units and ethane to $1.75; previously, both were at 75 US cents, among the lowest in the world.
Al-Falih said Saudi Arabia is better equipped to wait out currently low oil prices than other producers, adding that he expected a more stable market “some time in 2016.”
“Saudi Arabia more than anyone else has the capacity to wait out the market until this balancing takes place,” Reuters quoted him as saying at a news conference.
The Ministry of Finance stated in its 2016 budget document that the government is to adjust subsidies for water, electricity and petroleum products over the next five years, Any changes made to such prices would be aimed at achieving efficient use of energy and conserving natural resources, and would also be structured to minimize the negative effects on lower- and middle-income citizens, the document said.
A number of structural economic reforms, including “privatising a range of sectors and economic activities,” would also be planned, the ministry added.


Actis takes on management of two Abraaj funds

Updated 15 July 2019
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Actis takes on management of two Abraaj funds

  • US prosecutors have in recent months charged several executives of Abraaj with criminal charges, accusing them of taking part in a massive scheme to defraud investors

DUBAI:Actis said on Monday it had acquired the rights to manage two private equity funds previously managed by collapsed buyout firm Abraaj, in a deal aimed at strengthening its position in the Middle East and Africa.

Actis will take over the management rights to Abraaj Private Equity Fund IV and Abraaj Africa fund III, it said in a statement.
Abraaj, which filed for provisional liquidation in June 2018, was the largest buyout fund in the Middle East and North Africa until it collapsed last year in the aftermath of a row with investors over the use of money in a $1 billion health care fund.
The transaction includes investments in 14 portfolio companies across the two funds, Actis said.
“This Abraaj transaction further bolsters Actis’ footprint in the growth markets and follows the addition and integration of Standard Chartered’s Principal Finance Real Estate business in Asia in 2018,” it said.

BACKGROUND

Abraaj, which filed for provisional liquidation in June 2018, was the largest buyout fund in the Middle East and North Africa.

Actis now has $12 billion under management and more than 250 people across 16 offices.
The Actis transaction comes after the finalization of two other Abraaj deals — the transfer of management of the $1 billion health care fund to US buyout fund TPG and the sale of Abraaj’s Latin America fund to Colony Capital.
NBK Capital Partners, owned by Kuwait’s biggest lender, walked away from advanced talks to buy a global credit fund previously managed by Abraaj, Reuters reported last month.
US prosecutors have in recent months charged several executives of Abraaj with criminal charges, accusing them of taking part in a massive scheme to defraud investors.