Kuwait’s Agility plans $1 bil­lion fundrais­ing

Kuwait Times - - BUSINESS -

DUBAI: Kuwait’s Agility, the largest Gulf Arab trans­port lo­gis­tics com­pany, plans to raise around $1 bil­lion to fund fu­ture growth across its busi­ness, the chief ex­ec­u­tive said in an in­ter­view yes­ter­day. The com­pany is fo­cus­ing on di­ver­si­fy­ing its busi­ness across emerg­ing mar­kets as low oil prices risk de­lay­ing some projects in the Mid­dle East, said Tarek Sul­tan. Agility is al­ready present in around 100 coun­tries and plans fur­ther ex­pan­sion within the As­so­ci­a­tion of South East Asian Na­tions (ASEAN), the GCC and Africa, Sul­tan said. “We have cor­po­rate re­quire­ments that could be in the neigh­bor­hood of $1 bil­lion and our other busi­nesses are grow­ing as well, have their own re­quire­ments and will seek to ad­dress them on a project by project ba­sis,” he said in an in­ter­view.

United Projects for Avi­a­tion Ser­vices Com­pany, the com­mer­cial real es­tate de­vel­op­ment and fa­cil­i­ties man­age­ment arm of Agility, is work­ing on a $1 bil­lion shop­ping mall project in Abu Dhabi, Sul­tan said. Agility said in June it had agreed with a real es­tate sub­sidiary of Na­tional Real Es­tate Com­pany to in­vest $225 mil­lion in the shop­ping mall. Agility’s bulk fu­els stor­age, dis­tri­bu­tion and sup­ply chain busi­ness re­quired fi­nanc­ing to meet plans to ex­pand its ship ca­pac­ity trans­port­ing re­fined prod­ucts and gas, he said. Africa is one of the ar­eas of fo­cus for the com­pany, with Sul­tan say­ing in Fe­bru­ary it planned to spend $100 mil­lion this year on ex­pan­sion in the con­ti­nent.

He said he ex­pected cap­i­tal ex­pen­di­ture in Africa to be at a sim­i­lar level next year, but could be higher if the pace of ex­e­cu­tion of projects it is work­ing on ac­cel­er­ates. “Go­ing for­ward, from an oil and gas per­spec­tive there could be fewer projects. Hav­ing said that, if you look at en­ergy and power projects, low oil prices are con­ducive to build­ing more power plants so you could see an ex­pan­sion of op­por­tu­ni­ties in the power sec­tor, es­pe­cially in Africa,” he said. Still, some of its projects in the oil and gas busi­ness may be hit by the slump in prices since June last year. “We do a lot of work in the oil and gas in­dus­try so our project lo­gis­tics busi­ness is likely to see projects de­layed,” he said. —Reuters

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