Oman’s State General Reserve Fund (SGRF) says it has acquired a 32.5 per cent stake in Spanish manufacturer Mecanizados Escribano.

Mecanizados Escribano manufactures precision mechanical components and develops systems for the aerospace and defence sectors.

The sovereign wealth fund’s investment is a combination of equity purchase from the current owners and a capital increase to finance new projects.

The company will establish Escribano Middle East, in which Oman National Investments Development Company (Tanmia) will have a 30 per cent stake.

The intention is to set up advanced manufacturing projects in Oman, to create jobs and transfer expertise.

“SGRF considers Mecanizados Escribano as a long-term strategic investment, with the intention of remaining investors for the foreseeable future and favouring future expansion plans of the business notably in Oman,” said Abdulsalam al-Murshidi, executive president of the fund. “The agreement is to replicate Mecanizados Escribano’s business model in Oman, in respect to machining capabilities and technologies.” 

This will then encourage local start-ups and a manufacturing base in Oman.