Saudi TAQA Aims to Quadruple its Investments Within 3 Years

Technicians at a site affiliated with the Saudi TAQA company. (TAQA)
Technicians at a site affiliated with the Saudi TAQA company. (TAQA)
TT
20

Saudi TAQA Aims to Quadruple its Investments Within 3 Years

Technicians at a site affiliated with the Saudi TAQA company. (TAQA)
Technicians at a site affiliated with the Saudi TAQA company. (TAQA)

The Saudi Industrialization and Energy Services Company (TAQA) investments will increase fourfold within three years, starting in 2023, to strengthen the company's presence in the oil services sector.

TAQA is present in 15 countries and provides oil well services through advanced technology, supporting innovation and establishing lasting partnerships with stakeholders.

According to the company's website, TAQA Well Services is the growth engine of TAQA and is in charge of delivering well services across all service lines and geographies within the MENAT region.

Executive Vice President of Well Solutions at TAQA Aamir Naseem explained that the value of the investments allocated until the end of 2026 is to match the company's ambitions to expand in Africa, describing it as a "promising market" in the oil sector.

During an exclusive interview with Asharq Al-Awsat via Zoom, Naseem did not disclose the size of the investments.

Nassim added in the interview with Dhahran that Egypt will be the center for launching the company's operations in Africa through a new headquarters.

The official said that TAQA is constantly exploring new investments, and truly promising opportunities characterize African markets.

"Egypt will be an important part of facilitating our entry into these markets based on the Egyptian-African and Egyptian-Arab agreements, which facilitates and supports the company's work there."

In January 2023, TAQA announced that it completed its 100% acquisition of al-Mansoori Petroleum Services in Egypt to expand the company's business in the field of well services globally.

The combined businesses employ over 5,500 employees, serving a broad and diverse customer base across 20 countries.

The acquisition was funded by a capital increase led by TAQA's existing significant shareholders, led by Saudi Arabia’s Public Investment Fund (PIF), which owns 54% of TAQA.

PIF's investment portfolio stated that it has assigned TAQA the task of achieving leadership in localizing industries, providing specialized equipment, and providing oil well services to explore and develop oil and gas resources in Saudi Arabia and the rest of the MENA region.

The Fund explained that based on the long history established by the first two companies affiliated with TAQA, namely Arab Drilling Company and Arab Geophysics and Surveying Company, TAQA is currently moving towards expanding its oil well services and equipment through various approaches.

The investments vary between purchasing a share and acquiring international companies specializing in oil well services and equipment technology.

The company's proximity to the largest oil reserves and its strong international partnership with the largest oil and gas producers gives it a unique position that qualifies it to achieve the maximum possible value and generate the highest return on these investments.

During the interview, Nasseem explained that Egypt is one of TAQA's strategic countries, which will acquire many of the company's future investments during the next two years.

Established in Saudi Arabia in 2003, TAQA provides products and solutions to the energy industry, enabling the performance of its customers.

It is a Saudi joint stock company with regional offices in Dhahran, Saudi Arabia, and Abu Dhabi in the United Arab Emirates.

Regarding the opportunities for offering on the "Egypt Stock Exchange" to increase the shareholder base, in light of reports indicating that TAQA will be listed on the Saudi "Tadawul" Stock Exchange, Nasseem explained that this will be determined in light of the success of the company's strategy that began last year until the end of 2026.

The Board of Directors will determine the most appropriate way to increase the shareholder base.

Egypt intends to offer petroleum companies as part of a program to sell state assets or exit from government companies, and TAQA doesn't have any current plans to participate in this program, said Nasseem.

Investment opportunities in Africa

The African market has promising opportunities in the energy sector, and TAQA is working hard to meet this demand, said Nasseem, specifically referring to Libya, Algeria, Tanzania, Kenya, Uganda, and Mozambique.

Regarding his estimate of the size of operations in the African market, he pointed to the routes that start from Egypt in terms of infrastructure qualified for more shipping in North and East Africa.

The official added that TAQA is working to reduce pressures in the oil sector in the African countries, which are considered developing countries, by providing its various services in well fields and investing in them through Egypt.

He said the company has a large number of operations in Arab countries.

"Our activity is in the Middle East, North and East Africa, Türkiye, Bangladesh, India, and Pakistan, in addition to the company's main activity in Saudi Arabia, Kuwait, Oman, the Emirates, and Iraq."

"The Middle East is the hub of global oil power and production. It is an important place in terms of production and infrastructure for the sector, which qualifies it for growth in business volume."

Renewable energy

Nasseem said TAQA works in thermal energy, a clean energy sector, in parallel with the expansion of technologies that reduce the impact of the carbon footprint in the management of drilling oil wells.

He explained that most global expectations indicate that 2050 the global population will increase by two billion, which would undoubtedly require energy sources.

Oil and gas will undoubtedly represent a significant part of the energy sources, given the size of the growth in renewable energy, noted Nasseem, indicating that Southeast Asia and China, in particular, will lead this growth.

The expert explained that the world's need for oil will necessarily grow, and it will also be matched by growth in renewable energy sources, but it will not cover all the global energy demands.

However, he referred to the technological development, which TAQA uses on a large scale, to reduce carbon emissions from traditional energy sources, "which will enhance the demand for it during the coming period."

Regarding the difference in demand rates for the energy sector, Nasseem indicated that traditional and renewable energy sectors will grow in parallel during the next two decades until 2050.

He explained that energy sources must have three elements so the world could rely on them: reliability, cost level, and sustainability, which would help determine how the sector will look until 2050.

The demand for oil and gas will represent about 52% of the volume of global energy demand until 2050, down from 54%, and coal will represent 16%, down from 27%. Renewable energy, including solar and wind power, will reach 12%.

Nasseem stressed that renewable energy will not satisfy the demand for the global energy sector alone.

"Renewable energy must not replace traditional energy," he said, pointing to the severe repercussions for global energy security.

EGYPES 2024

TAQA is scheduled to participate in the Egypt Energy Show (EGYPES) 2024, held in Cairo between Feb. 19 and 21, as part of the company's strategy to provide new technologies in the Egyptian energy sector.

Meanwhile, Deputy Executive Director of TAQA in Egypt Hussam Abu Seif stated that the company views EGYPES 2024 as a crucial opportunity.

Abu Seif explained that EGYPES 2024 serves as a platform where major industry players can engage in constructive discussions with government bodies and the Ministry of Petroleum regarding energy security, investments in oil and gas, and guidance toward a sustainable future characterized by low carbon rates and reduced emissions.

"Our company is committed to achieving growth in the Egyptian market, leveraging its position as a hub to serve neighboring countries in Africa," he said.

The official asserted that TAQA aims to fortify its position and broaden its services to customers in the Gulf, the Middle East, and Africa.



US, China Reach Deal to Cut Trade Deficit, US Officials Say

US Treasury Secretary Scott Bessent (L) and US Trade Representative Jamieson Greer speak to the media after talks between seniors US and Chinese officials on tariffs at the residence of the permanent Swiss ambassador to the United Nations in Geneva on May 11, 2025. (Photo by VALENTIN FLAURAUD / AFP)
US Treasury Secretary Scott Bessent (L) and US Trade Representative Jamieson Greer speak to the media after talks between seniors US and Chinese officials on tariffs at the residence of the permanent Swiss ambassador to the United Nations in Geneva on May 11, 2025. (Photo by VALENTIN FLAURAUD / AFP)
TT
20

US, China Reach Deal to Cut Trade Deficit, US Officials Say

US Treasury Secretary Scott Bessent (L) and US Trade Representative Jamieson Greer speak to the media after talks between seniors US and Chinese officials on tariffs at the residence of the permanent Swiss ambassador to the United Nations in Geneva on May 11, 2025. (Photo by VALENTIN FLAURAUD / AFP)
US Treasury Secretary Scott Bessent (L) and US Trade Representative Jamieson Greer speak to the media after talks between seniors US and Chinese officials on tariffs at the residence of the permanent Swiss ambassador to the United Nations in Geneva on May 11, 2025. (Photo by VALENTIN FLAURAUD / AFP)

US Treasury Secretary Scott Bessent on Sunday reported "substantial progress" in US talks with China's top economic officials to de-escalate a damaging trade war, but offered no details of an agreement reached as two days of negotiations wrapped up in Geneva.
Bessent told reporters that details would be announced on Monday and that US President Donald Trump was fully aware of the results of the "productive talks."
US Trade Representative Jamieson Greer, who participated in the talks with Bessent, Chinese Vice Premier He Lifeng and two Chinese vice ministers, described the conclusion as "a deal we struck with our Chinese partners" that will help reduce the $1.2 trillion US global goods trade deficit.
"And this was, as the Secretary pointed out, a very constructive two days. It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought," Greer said, adding that the Chinese officials were "tough negotiators"
The meeting was the first face-to-face interaction between Bessent, Greer and He since the world's two largest economies imposed tariffs well above 100% on each other's goods.
Although Bessent has said the bilateral tariffs were too high and needed to come down in a de-escalation move, he did not offer any details of reductions agreed and took no questions from reporters, Reuters said.
Earlier, White House economic adviser Kevin Hassett said the Chinese were "very, very eager" to engage in discussions and rebalance trade relations with the United States.
Hassett also told Fox News that more foreign trade deals could be coming with other countries as soon as this week.
Overnight, Trump gave a positive reading of the talks, saying the two sides had negotiated "a total reset... in a friendly, but constructive, manner."
"A very good meeting today with China, in Switzerland. Many things discussed, much agreed to," Trump posted on his Truth Social platform.
"We want to see, for the good of both China and the US, an opening up of China to American business. GREAT PROGRESS MADE!!!," Trump added, without elaborating on the progress.
Speaking on "Sunday Morning Futures" on Fox News with Maria Bartiromo, Hassett said Beijing is eager to re-set trade relations with the United States.
"It looks like the Chinese are very, very eager to play ball and to re-normalize things," Hassett said.
Hassett also said more trade deal announcements could be imminent following last week's announcement of an agreement with the United Kingdom. He said he had been briefed by Commerce Secretary Howard Lutnick on two dozen pending deals in development with USTR Greer.
"They all look a little bit like the UK deal but each one is bespoke," Hassett said.
GATED VILLA
The negotiating teams met at the gated villa of Switzerland's UN ambassador, overlooking Lake Geneva in the leafy suburb of Cologny. Black Mercedes vans with sirens shuttled to and from the venue, which was bathed in bright sunshine.
Neutral Switzerland was chosen as the venue following approaches by Swiss politicians on recent visits to China and the United States.
Washington is seeking to reduce its $295 billion goods trade deficit with Beijing and persuade China to renounce what the United States says is a mercantilist economic model and contribute more to global consumption, a shift that would require politically sensitive domestic reforms.