KUALA LUMPUR: UEM Edgenta Bhd is strengthening its presence in Saudi Arabia.
UEM Edgenta said its wholly-owned Edgenta Arabia Ltd (EAL) had entered into a share purchase agreement with Mohammed I. Alsubeaei & Sons Investment Company (Masic).
The agreement involved an investment of 60 per cent stake and provision of growth capital in MEEM for facilities management company.
UEM Edgenta managing director and chief executive officer (CEO) Syahrunizam Samsudin said the investment in MEEM came at an opportune time as the company solidified 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 Integrated Facilities Management (IFM) and healthcare projects where UEM Edgenta's strong credentials can be deployed across the local Kingdom of Saudi Arabia market," he said.
Established in 2017, MEEM is a homegrown facilities management company founded by Masic.
Its capabilities include the provision of hard and soft facilities management services, specialised and support services to commercial, industrial, education and residential properties in Saudi Arabia, with a workforce of more than 150 employees.
"Masic is pleased to partner with UEM Edgenta Bhd in the promising Saudi facility management industry.
"We look forward to expanding MEEM's capabilities in the Kingdom of Saudi Arabia by leveraging on UEM Edgenta's technology solutions in digital platforms and energy management programs, and are confident that this partnership will take MEEM to a new level in its development journey," said Masic CEO Hani Halawani.
Saudi Arabia's facility management market is expected to expand by a compounded annual growth rate of 6.2 per cent to US$35 billion by 2028, accounting for 50 per cent of spend in the Gulf Cooperation Council region.
Mega projects such as Neom, Red Sea, AMAALA and Qiddiya will be the catalysts for UEM Edgenta and Masic to co-develop world class IFM services before expanding further into the broader GCC region.
The proposed investment is expected to complete by the first quarter of 2023 upon fulfilment of the local regulatory approvals and conditions precedent of the agreement.