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Inovest announces water technology venture

Bahrain: Sunday, March 29 - 2009 @ 12:44

Subject to CBB and other statutory approvals, the launch of this product is likely to ensure the company’s first step towards widening their Islamic investment pool through pioneering shariah compliant transactions that are favoured by investors in today’s markets.

The first product brings about a partnership between Inovest and a US technology partner through a plan to establish a venture in the field of water technology. The prospect is for a manufacturing facility with a short gestation, designed to produce water filter cartridges for use in the household, industrial and commercial sectors, as well as in desalination plants in the Mena (Middle East North Africa) region. The manufacturing knowledge to be deployed is based on proven world renowned melt blown technology brought by the company’s technology partners who are themselves established pioneers in the field, as well as suppliers of similar technology to recognized US and European manufacturers.

In illustration of their confidence in the project, Inovest’s technology partners are taking up a 20% stake in the venture and are also offering firm buy back of 50% of the production. The remaining 50% will be sold in the open Mena market. The project, which is likely to be based at Bahrain Investment Wharf, will use environmentally clean, efficient technology without any emissions.

Dr. Khalid Abdulla further commented:

“Our planned facility caters to a specific niche market; with a project at a size of $32m, net equity offering will be approximately $24m of which $7.2m is being subscribed to by Inovest and its technology partners, leaving a net $16.8m for high net worth individuals and institutional investors.”

Dr. Khalid Abdulla highlighted the eminent need for the facility noting that Saudi Arabia alone spends approximately $6bn on investments in desalination. The project has been structured with risk mitigation on sale through a firm off-take agreement, whilst also ensuring long term raw material supply at a favorable price, based on a strategic long-term buying agreement with a major petrochemical supplier in KSA. It is projected that the water technology venture will provide lucrative returns to investors even in the most conservative of scenarios.

Inovest will continue to structure and introduce innovative products that satisfy the market and investor needs for shariah compliant transactions that are ethical, transparent, risk adjusted and offer attractive returns.

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Sunday, March 29- 2009 @ 12:44 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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