Gulf Capital, an alternative asset manager in the Middle East, has invested $25m in Amak Group, a provider of integrated petroleum services for the onshore and offshore sectors in Egypt.

The investment was made through the Gulf Credit Partners Fund.

Karim El Solh, CEO of Gulf Capital, said: “Gulf Credit Partners’ investment will help Amak continue its strong growth at an exciting time for Egypt’s revitalised oil & gas sector. Amak’s strong position in the Egyptian oil and gas service sector, as well as its ambitious growth strategy and experienced management team, are strongly aligned with our Fund’s investment strategy.”

“Gulf Capital is proud of demonstrating its confidence in the Egyptian economy by making several investments in Egypt this year through both its private equity and credit businesses,” he added.

Underinvestment in Egypt’s upstream segment over the last three years has held back growth and seen domestic consumption catch up with production.

Oil demand is expected to increase from 34.8m tonnes oil equivalent (toe) in 2013 to 45.5m toe in 2020.

Over the same period, it is estimated that shortage of hydrocarbons in Egypt will grow from 657000 barrels oil equivalent (boe) per year to 28.2 million boe/year.

An improving outlook with regards to political stability in Egypt has improved investor sentiment and encouraged investment in the country’s oil & gas sector.

In its attempt to bridge the supply-demand imbalance, the Egyptian government has taken steps to attract further investment to this strategic sector.

In particular, the government has reached an agreement with foreign oil firms to pay off all of its arrears by 2017.
This strategy already appears to be paying dividends, with the latest auction of 22 oil & gas exploration concessions drawing substantial interest from international oil multinationals.

Amak, as a leader in integrated petroleum services in Egypt, is ideally positioned to benefit from the recovery and growth in the Egyptian upstream oil and gas sector, according to Gulf Capital.

Walid Cherif, Managing Director of Gulf Credit Partners, said that Amak has achieved significant growth over the last years to become a main player in upstream oil & gas services in Egypt.

“Our investment in Amak represents a new milestone for the Fund as we further diversify our portfolio by geography and industries. Gulf Credit Partners is today invested in some of the fastest growing and most defensive industries across the region, including healthcare, education, power and oil and gas services,” he said.

Ayman Abbas, founder of Amak, added: “This institutional investment from Gulf Capital will strengthen Amak’s capital structure, allow us to fund the rapid growth of the Company and help improve overall corporate governance, all vital components to the continued success of Amak. We are glad to partner with such a leading alternative asset manager in order to achieve our ambitious growth plans.”