Majis Industrial Services (MIS), an integrated water services company wholly owned by the Omani government, has ambitions to expand its activities, currently limited to Suhar, to other industrial and economic hubs in the Sultanate of Oman , as well as potential markets in the wider Gulf Cooperation Council. (CCG).
Majis, a subsidiary of Oman Investment Authority (OIA) – the Sultanate of Oman’s integrated sovereign wealth fund – is among a number of public entities preparing for partial privatization as part of the government’s divestment strategy. ‘OIA. Initial public offerings (IPOs) through the Muscat Stock Exchange (MSX) are the preferred route for privatization.
At the MSX Investors Roadshow held last week, a senior official from Majis gave an overview of the company’s business model, operational performance and vision for growth.
Hamed Ali al Wahaibi, acting CEO, said the company currently provides a range of water-related utilities to mainly industrial customers operating in the port and free zone of Sohar, as well as in the nearby industrial city of suhar. No less than 50 customers are currently connected to Majis’ comprehensive networks which provide cooling seawater, ultra-pure process water and drinking water, as well as wastewater treatment and industrial effluents supplied by the company.
“We have a very attractive business model, with well-invested assets and sustainable growth acceleration, supported by capable and experienced management,” the interim CEO said. “We have an exclusive concession with Sohar Port and Free Zone as the sole utility provider, with ownership of integrated utility assets, such as the sea water intake system, plant RO (and other infrastructure), with the ability to scale and grow the business. We have long-term agreements with our customers, with an average remaining term of 15 years and with over 90% of our agreements based on “take or pay” agreements. This gives you an indication that our cash flow is pretty much predictable and also stable. »
Commenting on Majis’ financial performance, he said the company had experienced compound annual growth of around 20% since its inception in 2007. Majis continues to generate “double-digit” profits for its shareholders, he said. note.
Sharing information on Majis’ growth plans, Al Wahaibi said the company aims to set up similar integrated utility networks to support industries in the Salalah Free Zone. Following the signing of a memorandum of understanding in this regard last year, Majis has recently completed the “business case” to implement this initiative and hopes to “reach an agreement” with the authority of the free zone to move forward.
In addition, Majis is exploring opportunities to deliver its integrated water utility model to potential customers through the public-private partnership (PPP) route, he said. In March, the company submitted its bid for a water services project based on a PPP, to be supplied by Oman Water and Wastewater Services Company (OWWSC), resulting from the restructuring and merger of Haya Water and Diam.
Going forward, Majis is also targeting opportunities in the wider GCC region, based on an outward expansion envisaged in the “next 3 to 4 years”, he added.
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