Friday, August 15, 2008

Macki gets the cheque book out in Libya

In more local news, Oman agreed to form a $500 million joint investment company with Libya during the visit by His Majesty and senior Omani Government officials.

Hey, why not? Its obviously not proving easy to spend all the money Oman is currently coining with the high oil prices. The Government is already spending as much, if not more, than it sensibly can in Oman without the economy running white hot with inflation and running out of materials (and opportunities). And the main Government investment funds are also straining to find investment opportunities that meet the criteria.

So, this offers a quick spend of $250mln, a source of leverage and opportunity in a country with strong prospects for long-term growth, and a nice diplomatic coup for HM. There will undoubtedly also be opportunities for investments in Libya's upstream oil and gas sector, as the spending and exploration programs of the newly re-invited oil majors start to seek traction. Thus, I'd expect a potential follow through in Libya for companies like Renaissance Services, MB Petroleum, Galfar and Al Turki, as well as perhaps opportunities in pipe supply, real estate development, tourism etc.

Nice one.
ultanate, Libya ink MoU on joint venture
TRIPOLI As part of His Majesty Sultan Qaboos Bin Said’s visit to Libya, the Sultanate's government and the Libyan government signed a Memora-ndum of Understanding (MoU) on Wednesday to establish a joint holding company with a capital of $500 million at its headquarters in Tripoli.

The agreement was signed on behalf of the Sultanate's government by HE Ahmed Bin Abdul nabi Macki, Minister of National Economy and Supervisor of the Ministry of Finance, and Dr Ali Abdul Aziz Al Isawi, Secretary of the General People's Committee for Economy, Trade and Investment on behalf of the Libyan government. The ceremony was attended by Dr Al Baghdadi Ali Al Mahmoudi, Secretary-General of the General People's Committee.

"The MoU comes as crown and translation of His Majesty Sultan Qaboos Bin Said's visit to Libya and desire of the two countries to enhance and develop the existing cooperation in different domains, especially in economic and joint investment fields, said Macki.

"The aim of the joint holding company is to explore investment opportunities in industry, trade, tourism, real estate and banking institutions in both countries,” he added.

"The incorporation of a multi-purpose company is aimed at exploring investment opportunities that can develop economy in both countries,” he added.

The two sides agreed to establish a joint committee that will prepare the incorporation agreement of the holding company and explore the potential investment opportunities that can be undertaken by the proposed company.

1 comment:

  1. Thanks for the news item.
    Let us hope the investment will yield some good results unlike Gulfair and Kazhak Pipe line.


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