Avanceon Saudi for Energy Company, a subsidiary of Avanceon Limited, has entered into a joint venture agreement with ZOMCO (Zamil Operations & Maintenance) to expand their project execution footprint in the Kingdom of Saudi Arabia (KSA).
According to communication received by Karachi Stock Exchange (PSX) on Monday, the joint venture will be conducted through a newly formed liability company named Avanceon Arabia InfoTech WLL.
Avanceon has been active in the Middle East region for over a decade, serving top tier clients and executing some of the largest government projects. The company has a highly trained human capital, strong technical know-how, low-cost execution model, and strong OEM relationships. With these strengths, Avanceon aims to expand its services portfolio by collaborating with a reputable JV partner in KSA.
ZOMCO, a fully owned subsidiary of the Zamil Group, has a strong local presence in KSA with rich execution experience, having been in operation for more than three decades. The two companies plan to create a synergetic partnership and make the JV a holistic solution provider.
The JV will see both companies invest in sophisticated testing and manufacturing facilities, recruitment of human resources, and creation of a lucrative pipeline of projects within the Water, Transportation, and Infrastructure sectors. The Water sector includes projects related to water treatment and desalination, while the Transportation sector includes road networks, airports, and seaports. The Infrastructure sector includes projects related to buildings, power generation, and renewable energy.
The creation of Avanceon Arabia InfoTech WLL will allow the two companies to combine their strengths and expand their reach in the KSA region. The joint venture will enable them to offer a wider range of services and solutions to their clients, helping to drive growth and development in the Water, Transportation, and Infrastructure sectors.
In summary, Avanceon Arabia InfoTech WLL is a joint venture between Avanceon Saudi for Energy Company and ZOMCO, aimed at expanding project execution footprint in KSA, particularly in the Water, Transportation, and Infrastructure sectors. With their combined expertise and resources, the two companies aim to become a leading solution provider in the region.
Faisal S. Al Zamil, ZOMCO President expressed his view on the JV, ZOMCO is proud to be working in partnership with Avanceon to bring market leading system integration and automation solutions to the Saudi market. “We see huge opportunities in the sector and have a partner who can help to develop the market and to train and mentor a team of young Saudi professionals to deliver world class solutions.”
Sarmad Mahmood Qureshi, President Avanceon Limited (Middle East & Africa), and leading as Executive Director & CEO Avanceon Arabia InfoTech, expressed his views on the JV with ZOMCO: “The timing is opportune for a joint venture with a well-known Saudi conglomerate, as Avanceon is already a leading regional provider of infrastructure, oil and gas, water, and transportation solutions in the GCC.
“With Saudi Arabia committing significant investments, this collaboration with Zamil will further enhance Avanceon’s position. The establishment of Avanceon Arabia InfoTech reflects our shared commitment to advancing our technological capabilities. The Saudi Vision provides an ideal platform to replicate, promote, and implement our successful solutions in KSA. With ZOMCO as our partner, we are confident in our ability to develop a robust portfolio of projects, maintenance solutions, and digitalization initiatives, which will be vital in realizing the goals of the Saudi Vision 2030.”
As agreed in the terms of the JV agreement, Avanceon and ZOMCO will split the initial paid up capital 60 percent and 40 percent respectively. The validity of the JV will be 25 years and will commence on the effective date and shall continue until terminated.