Oman contractor Galfar sets up new Kuwait business
The fully owned Galfar Oman General Contracting for Building has been established with an initial capital of $33,030, chief executive Dr Hans Erlings said
Omani contractor Galfar Engineering and Construction has expanded its operations to Kuwait.
Dr Hans Erlings, chief executive officer of the Muscat-listed company, said Galfar had registered “a one-person company” in the country.
Galfar Oman General Contracting for Building is fully owned by Galfar, and has an initial capital of $33,030 (KWD10,000).
“This new company will apply to be registered for executing the same works [that Galfar] is registered for in Oman,” Erlings said.
“The associate company in Kuwait, Galfar Engineering and Contracting-Kuwait (K SCC), in which Galfar Oman holds 26%, will continue operating in roads, civil works, and the supply of concrete and asphalt,” he added in a missive to the Muscat bourse.
Galfar’s expansion in Kuwait comes after it confirmed late last year that it was exploring the divestment of its Indian business.
The contractor’s Indian presence included its fully owned subsidiary, Galfar Engineering and Contracting India, and five special purpose vehicles (SPVs) created for road projects.
In a missive issued on 29 October, 2017, company secretary Abdelbagi Daffalla said Galfar’s board had “approved […] and directed to explore [the] potential divestment of these investments”.
Majid Salim Said Al Fannah Al Araimi, chairman of the company, revealed in Galfar’s annual report for 2017 that Galfar India was “completing its last two construction contracts”, adding that a consultant had “been appointed for the valuations of [the SPVs] in India, with the aim of divesting them”.