Kamco enters energy services sector
Posted: 30 October 2007
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Kuwait-based KIPCO Asset Management Company (Kamco) plans to invest in energy services investment sector. A statement from the company said, it sees a significant growth trend in this sector covering oil, gas and coal activities and alternative energy sources.
The strong demand for energy and energy related products has been driven by the surge in developing economies. The limited increase in the supply of oil, coupled with high fuel prices and greater understanding of global warming issues, have resulted in many new government policies supporting the development of alternative energy sources.
“The worldwide growth of energy investments has been echoed in emerging markets and we believe the Gulf region is poised to play an increasingly active role in contributing to this growth,” said Saudoun Abdullah Ali, general manager, Kamco.
Kamco believes this has led to distinct investment opportunities focusing on both ancillary energy services activities as well as alternative ‘greener’ energy sources and related services.
“We have seen a marked change recently in the sustainable energy industry, which is no longer dominated solely by developed market economies but has seen a rapid growth in other markets – with a fifth of total investments now occurring in the developing world,” Ali said.
“Although a significant portion of these are occurring in China , the Middle East region is now at the tipping point and we expect to see an exponential growth in related market investments”.
The majority of listed companies operating in the traditional energy service sector are heavily dominated by the North American market which constitutes about 50% of the market, with a smaller yet significant European sector, particularly in Norway .
Presently only a few companies in this sector are listed in the Middle East or Asia . -based KIPCO Asset Management Company (Kamco) has announced entry into the energy services investment sector. |
