Oman’s Rakiza buys 40% of Saudi power company 

Engie Middle East

Oman’s state-owned infrastructure investor Rakiza has secured the financial close of its first transaction in Saudi Arabia by acquiring 40 percent of Tihama Power Generation Company.

Tihama comprises four combined heat and power plants located at Ras Tanura, Ju’aymah, Shedgum and Uthmaniyah in the kingdom’s eastern province.

The four plants produce 1,600 megawatts of electrical power and 6.3 million pounds per hour of process steam, operating since 2006. 

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The deal value and the seller’s name were not disclosed.

Saudi Aramco, the world’s largest oil producer, consumes the output through a long-term agreement. 

Rakiza will partner with Engie, a French utility major, owning 60 percent of Tihama Power.

Rakiza focuses on investing across various infrastructure assets in Oman and Saudi Arabia. 

The fund is independently co-managed by Oman Infrastructure Investment Management and London-based equity firm Equitix.

Tihama Power is the fifth asset in Rakiza’s portfolio, which includes a range of investments in transportation (ports), network utilities, data infrastructure and social infrastructure.