JEDDAH, 6 November 2007 — The water industry, with its tremendous growth prospects combined with scarce availability of funds, offers a broad range of investment opportunities for the private sector. Water desalination remains one of the most promising areas for investment. Against this scenario, Bushnak Group of Saudi Arabia and Gulf One Investment Bank of Bahrain on Sunday night launched Moya Holding Company.
The new global water investment firm will be active in the water market covering opportunities in desalination, water and wastewater.
Moya will also be interested in acquiring existing companies in manufacturing, developing and investing in water related technologies, Dr. Adel Bushnak, CEO of Bushnak Group and chairman of Saudi Water & Power Forum, and Dr. Nahed Taher, founder and CEO of Bahrain-based Gulf One Investment Bank, told a joint press conference at the Jeddah Hilton on Sunday night.
Taher said the idea of launching Moya was conceived three years ago when there was an intense debate on water projects to meet shortages.
“To me Moya is a pragmatic investment project that will bring banking and water technology experts together,” Ziyad E. Omar, founder and chief investment officer at Gulf One investment Bank, said.
“Moya will be an integrated water solutions company,” Ibrahim F. Bushnak, managing director of Bushnak Group, said.
“Moya has several immediate investment opportunities inside the Middle East and North Africa region as well as in India,” Bushnak said.
The total value of these projects is expected to be around SR112 million. The sponsors have already invested their own capital in some vital sectors. Moya’s initial paid-up capital is expected to be around SR185 million, but can reach SR560 million by the third year of operation.
With Moya’s establishment, Bushnak Group and Moya will jointly incorporate Bushnak Moya Ltd., a company providing project management and engineering services to the water sector. The new company will provide all the technical and operational support and services required for Moya in an “exclusive and arms-length basis.”
Gulf One Investment Bank BSC is incorporated in Bahrain and regulated by the Central Bank of Bahrain. Through a knowledge-based approach, highly experienced management team, an extensive network of professional relationships and strong links to international partners, Gulf One Investment Bank claims to provide first class investment banking services including asset management, corporate finance and private equity.
Bushnak Group, a house of technology industrial trade and management services, promotes the application of innovative technologies in the water industry. The group’s activities cover several fields including water treatment, power generation, trading, education, training and communications. The group is engaged in project development and management, consulting, engineering and procurement and supply activities within the water sector through its various subsidiaries including WESCO, DAT and ATEICO. WESCO is a “unique” company that combines engineering expertise with project development activities to provide complete end-to-end water supply solutions including construction, project management, operation and maintenance. The group has developed various projects and companies of various sizes both locally and internationally.
Bushnak Moya Ltd. is expected to have five different business lines — engineering and project development, project management, plant and utility management, product development and industrial supplies.
Dr. Bushnak said that a joint venture company, Bushnak Pallava Water Services Pvt. Ltd. in south India is venturing upon two projects, one each in Jeddah and Karaikal in the southern state of Puducherry. “The Karaikal project will provide water for industrial use,” Dr. B.V.S. Lakshmi, managing director of Bushnak Pallava Water Services Pvt. Ltd., said.
On the second day of Saudi Water & Power Forum yesterday, experts discussed innovation and integration in water and power, technology transfer and local content, and increasing importance of carbon credit and environmental sustainability.