Bahrain firms in $32m water filter plant deal

Bahrain-based Islamic investment houses Inovest and Tharawat are jointly establishing a water filter production company with investments of $32 million (Dh118m), Inovest's chief executive said yesterday.

"The investment is $32m – $24m equity and $8m financing," said Inovest's Chief Executive Khalid Abdulla. The Bahrain Water Technology Company, which plans to start production within one year, will produce water filters for household, commercial and desalination use.

The Islamic finance industry in the Gulf Arab region is seeking to diversify its investments away from the real estate sector.

The Arab region is facing a water shortage, and the new company seeks to provide filters to investments needed for increased fresh water supplies. Bahrain is currently investing $2.1 billion in the Al Dur power and water station.

Abdulla said Inovest would take a 10-per cent stake in the company, while the company's technology partner, US-based water filter equipment supplier PMI, would take a 20 per cent stake. The remainder is held by individual and institutional investors in the Gulf Arab region, he said. 

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