#Saudi Arabia #Riyadh #Energy Capital Group #Dar Al Balad #ECG2.0-Fund2

Energy Capital Group Expands Its Horizons with the Acquisition of Dar Al Balad Contracting

In a bold stride towards strengthening its footprint in the industrial services sector in Saudi Arabia, Energy Capital Group (ECG) has announced the noteworthy acquisition of Dar Al Balad Contracting (DAB) through its dedicated investment vehicle, ECG2.0-Fund2. This strategic move not only marks a significant milestone for ECG, aiming to create a national leader in industrial services, but also aligns closely with the ambitious Vision 2030 initiative aimed at bolstering the Kingdom's industrial infrastructure.

The acquisition of DAB comes at a crucial time as ECG seeks to enhance its operational capabilities and expand its service offerings. With intentions of listing this consolidated platform on Tadawul—the Saudi stock exchange—over the next two years, ECG is poised to unlock immense value for stakeholders across the region. This initiative signifies not just business growth for ECG, but also supports national efforts to modernize and optimize infrastructure in line with national energy and utility initiatives.

The Strategic Importance of DAB

Dar Al Balad has made its mark as a leading engineering service provider specializing in maintenance solutions for significant players in the Saudi power sector, including the Saudi Electricity Company (SEC). The company boasts a plethora of core services that ensure the effective functioning of essential infrastructure in both the power and industrial sectors. These services range from the inspection and repair of gas and steam turbines to the installation of advanced HVAC systems, underscoring DAB's integral role in maintaining operational integrity and efficiency across critical industries.

Furthermore, DAB's experience extends into specialized areas such as supply and installation of fire protection systems, equipment installation, and the manufacturing of mechanical seals. With such a comprehensive suite of services, DAB not only enhances ECG's capabilities but also positions the combined entity as a formidable competitor in the regional industrial landscape.

Joint Venture for Enhanced Capabilities

Adding another layer of strategic depth, DAB's existing partnership with STEG-IS—established in 2013—has allowed it to explore new avenues for growth. This joint venture focuses specifically on turbine maintenance activities, allowing DAB to leverage STEG-IS's expertise in this domain to enhance its service capabilities. This collaboration is crucial as it opens doors to new client relationships and amplifies the overall service offering.

A Vision for the Future

The acquisition of DAB is a pivotal component of ECG's broader vision to craft a robust national industrial services champion in Saudi Arabia. By consolidating leading industrial service providers under ECG2.0-Fund2, the company aims to create a high-growth entity that drives innovation across sectors. The vision extends beyond mere financial gain; it encompasses operational excellence and sustainable practices that align with the Kingdom's broader economic aspirations.

With prominent figures like Akram Alrabayah, ECG's General Partner, highlighting the invaluable role of DAB's technical expertise and client relationships, the outlook for the newly formed entity seems extremely promising. Emphasizing the transformative nature of this partnership, Bassam I. Ibn Salamah, DAB's Managing Director, eagerly anticipates expanding their service offerings and enhancing market presence throughout the Gulf Cooperation Council (GCC).

Conclusion

Energy Capital Group's recent acquisition of Dar Al Balad Contracting stands as a beacon of strategic growth and commitment to Saudi Arabia's Vision 2030. This partnership is set to not only accelerate DAB's growth trajectory but also enhance ECG's capabilities in a rapidly evolving industrial landscape. As both companies look towards a future filled with potential, they are well-prepared to elevate the standards of industrial services and positively contribute to the Kingdom's economic development.