The SaudiInvestment Recycling Company (SIRC) has announced Tuesday that it signedagreements to acquire 100% of the shares of Global Environmental ManagementServices (GEMS), from Jadwa Waste Management Opportunities Fund, which ismanaged by Jadwa Investment.
The SIRC isa totally owned subsidiary of the Public Investment Fund (PIF) of Saudi Arabia.The acquisition will be completed during the second quarter of 2019, theofficial Saudi Press Agency said.
SIRC wasestablished by PIF in 2017 as part of the Fund's strategy to develop newsectors within Saudi Arabia.
The SaudiArabian company plans to develop, own, operate and invest in various activitiesacross all waste types in the Kingdom, including state of the art treatment andrecycling facilities and waste to energy solutions that will support theNational Renewable Energy Program.
Moreover,SIRC will be acting as the national champion in the waste management sector bycreating a range of opportunities for private sector participation, investingin companies across all waste streams and value chains, and identifyingopportunities to invest in and localize proven and scalable technologies.
Upgradingthe sector will yield significant environmental, social and economic benefitsfor Saudi Arabia as SIRC aims at contributing over SAR 37 billion ($10 billion)to GDP, attracting up to SAR 6 billion ($1.6 billion) in inward investment andcreating around 23,000 new jobs by 2030.
Since establishment, SIRC has set the ground for a solid strategy to develop the waste management sector in the Kingdom.
The company is overseen by a highly qualified Board of Directors, chaired by H.E. Eng. Abdulrahman Al Fadley, Minister of Environment, Water and Agriculture.
In May 2018, board member Jeroen Vincent was appointed as CEO of SIRC, bringing over 20 years of international and regional experience in the waste management sector.
JadwaInvestment is a Riyadh-headquartered leading regional investment management andadvisory firm with assets under management of over SAR 25 billion in publicmarkets, private equity, and real estate.
GEMS is theleading industrial waste management company in Saudi Arabia, providinghazardous waste-management, industrial and engineering services to the oil,petrochemical and industrial corporations.
GEMS has astrong, experienced management team, complemented by access to an in-housescience and engineering centers.
JeroenVincent, CEO of SIRC, commented: "We are delighted to announce the first majorinvestment by SIRC, as it seeks to play a leading role in developing the wastemanagement sector in Saudi Arabia.
GEMS is awell-established, respected player in the Kingdom, and we look forward toutilizing their expertise to expand our footprint in the Industrial WasteSector while maintaining and expanding GEMS operations."
"Since starting operations 10 years ago, GEMS has grown to become the market leader of industrial waste management services in the GCC and this acquisition by the Saudi Investment Recycling Company marks a new era in the company's journey as it continues to deliver excellence with the most innovative
state-of-the-art technologies in the industry, with the aim to create long-term value and realize the Kingdom's national sustainability targets." Managing Director and CEO of Jadwa Investment Tariq Al-Sudairy said.