Kabeer Yousuf
Muscat - Oman’s State General Reserve Fund (SGRF) has acquired a 32.2 per cent stake in Mecanizados Escribano, a Spanish company that makes precision mechanical components for aerospace and defence sectors. SGRF on Monday inked an agreement with the Spanish company on Monday. The signing ceremony was held at SGRF premises. It was presided over by Nasser bin Khamis al Jashmi, Under-Secretary, Ministry of Finance, and attended by Abdulsalam al Murshidi, Executive President, SGRF; Juan José Urtasun Erro, Ambassador of Spain to Oman; and a number of prominent Omani and Spanish officials and businessmen.
“This agreement comes in light of the Sultanate’s continuous efforts to explore successful investment opportunities with leading companies around the world. It can bring a two-fold benefit to Oman,” Al Murshidi told the Observer. “Firstly, it’s a highly profitable investment abroad. Second, it can add value inside Oman. Our agreement is to localise manufacturing which will create sustainable high-end jobs for the local manpower.” He said SGRF considers Mecanizados Escribano as a “long-term strategic investment”. According to him, the number of jobs that can be created will depend on the business plan in various phases. The site of the plant has not been decided as yet. “We will soon select a location in Oman. The company has recently opened a new plant in Madrid. Our investment is in the currently running company which is generating revenues,” he said.
The agreement is to replicate Mecanizados Escribano’s business model in Oman. The new partnership will be called Escribano Middle East LLC. Oman National Investment Development Co. (TANMIA) will represent SGRF in the locally established company. Javier Escribano, General Manager, Escribano Mechanical and Engineering, said the SGRF is investing €18 million, which accounts for 32.2 per cent of €80 million, the total value of the company two years ago. Negotiations were held with SGRF then. “We are really excited to have have SGRF as our partner. Today the total value of the company is €100 million,” Escribano added.
© Oman Daily Observer 2016
