DUBAI: Saudi Arabia’s logistics sector has seen heavy deals, with Bahrain’s GFH Financial Group acquiring a Saudi food services and logistics business. This company – Gulf Central Company – has an enterprise value of approximately R500 million.
In its rationale for the acquisition, GFH said the Saudi company “has demonstrated strong financial performance and maintained strong performance through multiple business cycles.” Additionally, the company had a strong network throughout the kingdom, with more than 1,000 “preferred customers.”
Raj Al Merbati, CEO of GFH Capital, said: “This transaction is in line with GFH’s strategy to invest in priority areas in line with Saudi Vision 2030.”
“Defense” section
“This includes increasing the Group’s presence in complementary sectors that have a positive impact on the regional economy, while also benefiting from the country’s economic growth and demographic tailwinds.” Al Merbati he said. Today, we are focused on expanding our portfolio of unique and profitable assets in the defense sector, including Saudi Arabia’s fastest growing consumer and logistics industries. ”
Logistics creates big deals
Earlier this week, Saudi Arabia’s gigaproject Neom confirmed it would form a $10 billion venture with Danish shipping company DSV A/S to help develop the project. The partnership will focus on providing logistics services to Neom, with Neom holding his 51% stake in the joint venture and the rest being invested by his DSV.
Already a leading player in the fast-growing Saudi consumer and logistics market, the largest in the region, the company (Gulf Central) is poised for further expansion as a result of economic and social transformation and the rapidly changing domestic landscape. We think there is an opportunity.
– Hamad Yunas, Chief Investment Officer, Private Equity, GFH
The Saudi National Industrial Development and Logistics Program (NIDLP) aims to generate an additional $453 billion in private sector investment by 2030, contributing $320 billion to GDP and creating 1.6 million new jobs.
Shafqat Khan, CEO of Gulf Central, said: “With the support of GFH as our partner, we aim to attract overseas suppliers to set up facilities in Saudi Arabia wherever possible. ” he said.