Abu Dhabi Global Market (ADGM)based private credit fund manager Ruya Partners secured a $55 million (SAR 206 million) private credit investment to fund the development of an innovative hygiene nonwoven fiber production plant in Yanbu, Saudi Arabia.

The transaction was completed as part of a consortium with a fund managed by a leading regional financial institution, according to a recent press release.

This investment contributes to boosting the region’s production capabilities in nonwoven materials amid the growing demand within the hygiene sector.

It also supports the Kingdom’s broader vision of industrial diversification and sustainable economic growth, in line with the Saudi Vision 2030.

The funding will be used to back the construction of a staple fiber production facility owned by the Al Shair Group.

The plant will be a raw material supplier to United Saudi Company (USC), the only dry-laid hygiene nonwoven manufacturer in Saudi Arabia and wholly owned by the Al Shair Group.

Meanwhile, the facility will result in the culmination of a strategically important vertical integration of Al Shair’s nonwoven operations, enabling the whole supply chain and all related value-added to be brought into Saudi Arabia.

The operational phase is expected to commence within two years, with an initial production capacity of 30,000 metric tons. It is planned to expand this capacity to 50,000 metric tons during a subsequent phase of development, enhancing production efficiencies and meeting the region’s growing market demand.

Mirza Beg, Partner and Co-Chief Investment Officer of Ruya Partners, said: “We firmly believe that this hygiene nonwoven fiber production plant will play a pivotal role in meeting the increasing regional demand and strengthening Saudi Arabia’s position in this vital market.”

Addressing the importance of this upstream integrated project, Talal Al Shair, Founder and Executive Chairman of Al Shair Group, said: “The new facility will not only enhance local production capacity for hygiene nonwoven fibers but also support the Kingdom’s strategic goal of industrial diversification, integration and support the circular economy under Vision 2030.”

Omar Al Yawer, Partner and Chief Capital Formation Officer of Ruya Partners, commented: "This latest investment marks a meaningful milestone as Ruya Private Capital Fund I’s fifth deployment and the fourth financing supporting Saudi Arabia’s corporate growth.

“This collaboration highlights our continued commitment to providing strategic capital to transformative companies that are powering the Kingdom’s economic diversification,” he added.

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