This year IFC made a $50 million equity investment in Kuwait Energy to develop oil and gas projects in Egypt, Yemen, and several other countries.
In doing so, we’re supporting a small, private, woman-led company in a region dominated by large state-owned enterprises.
Kuwait Energy focuses on smaller oil and gas fields that are often overlooked by larger firms. The company is led by Sara Akbar, currently the only woman heading an oil and gas company in the Middle East.
The company’s strong management team and successful track record has allowed it to grow and take on projects in countries such as Yemen and Pakistan. Recently, it won service contracts for two large gas fields in Iraq.
IFC’s corporate governance team has also been working with Kuwait Energy to enhance its management and oversight structures as it prepares for a planned initial public offering on the London Stock Exchange. The company expects to be the first Middle-East-based oil and gas company listed on the London Stock Exchange.
Last year, IFC provided a $35 million reserve-based facility and a $15 million income participation facility to Kuwait Energy. The financing uses a murabaha structure, a financial transaction conducted in keeping with Islamic law. Though common in the region, it was a first for the oil and gas sector, and a first for IFC.
