$300mn Saudi Investment in Sri Lanka's Ceylon Fisheries Corporation to Increase Production and Streamline Sales of Fishing Industry

05th February 2012, english.nuqudy.com

The Dikkowita fishery in Sri Lanka has recently announced that a Saudi Arabian company will be investing around $300 million into the Ceylon Fisheries Corporation (CFC), which is organizing a project to streamline the fish market on behalf of the Sri Lankan Department of Fisheries.

The Saudi Arabian investment will make it possible for the CFC to buy fish from fishermen and sell them directly, eliminating the need for a middleman.  According to Dr. Rajitha Senaratne, Minister of Fisheries and Aquatic Resources Development, the investment means the CFC could “. . . directly intervene in the market. We will be able to set up a good network to increase production and sales throughout the country.  We can spread our wings through the CFC and the Cooperative City. These facilities will enable us to decide the price of fish.”

While a memorandum of understanding has not yet been signed, a company spokesperson will be visiting Sri Lanka this week to finalize the investment arrangements.

Saudi Arabian investors have a history of involving themselves in fishing operations.  For example in 2008, the Saudi-based National Prawn Company invested $300 million in beginning large-scale fish production in the Gulf.  Additionally, Saudi Arabia, with around 7,570 km of coastline, is in a prime geographical location to be involved in the fishing industry.

Saudi Arabia has produced approximately 40,000 tons of fish annually since 1985 through a combination of fish farming and artisanal, or low-tech, fishing.  Although production remains fairly constant, the location has fluctuated between the Red Sea and the Arab Gulf.  The number of fishing vessels and fishermen in Saudi Arabia has grown nearly five-fold in the past 20 years.

Sri Lanka’s economy has flourished in recent years and has been hailed as the most liberalized economy in South Asia.  The GDP grew 8.3% in 2011 according to the Central Bank of Sri Lanka, and the IMF estimates that the economy is worth over $56 billion.  Transparent investment laws have attracted an increase in foreign direct investment.  Human capital is also an asset, as Sri Lanka has a 94.2% literacy rate, and the workforce is highly trained in high tech production and services.

As for the fishing industry, the government expects 9.8% growth in 2012 due to auspicious weather conditions and an enhancement in marketing and infrastructure facilities.  Fishing is an important part of Sri Lanka’s economy, particularly exports, and tensions have been rising between Sri Lankan and Indian fisherman encroaching on each other’s waters.

Sri Lanka Investment Road Show in Middle East to Woo Significant Interest

03rd January 2011, www.ft.lk

A key investment promotion exercise involving multi-stakeholders and facilitated by Heraymila Investments Ltd. is being planned for February to woo significant interest from the Middle East.

A high powered delegation led by International Economic Cooperation Senior Minister Dr. Sarath Amunugama and comprising select public and private sector representatives is scheduled to visit Jeddah, Riyadh and Dubai as part of the Middle East road show.

Heraymila Investments Ltd. subsidiary Heraymila Securities CEO Ravi Abeysuriya told the Daily FT that the objective of the road show was to showcase the immense post-war potential for direct and portfolio investments for Middle Eastern investors.

With regard to select Government projects the idea of Public Private Partnership (PPP) will be pursued.

Some of the institutions that will participate are the Central Bank, Securities and Exchange Commission, Colombo Stock Exchange, Urban Development Authority, and Sri Lanka Tourism from the public sector whilst a few blue chips will form the private sector team.

The road show titled “Investment Destination Sri Lanka” will involve two day sessions in each of the three cities. “Depending on the success of the maiden initiative we will consider facilitating similar events in rest of the Middle East,” Abeysuriya added.

Colombo stock market’s attractive position as the world’s second best and Asia’s best performing for two consecutive years as well as post-war rebound are some of the key attractions for prospective Middle East investors.

Heraymila Investments, headquartered in UAE and registered with Dubai Financial Centre, manages over US$ 260 million out of the family wealth of Saudi Arabia’s Abdulaziz Al Mashal, which has interests in aircraft leasing for European commercial airlines, investments in real estate apart from public and private equity in over 30 countries.

Abeysuriya said that given its own background and success in investing in Sri Lanka, the one-on-one meetings arranged by Al Mashal family will be a significant opportunity for the Lankan delegation. Separate meetings and presentations with chambers of commerce and industry in identified cities will be an additional feature of the road show.
Al Mashal’s interest in Sri Lanka originated much before the war ended. It first entered Sri Lanka in 2005 via the Colombo stock market by acquiring a 10% stake then in the country’s biggest private sector bank with an investment of US$ 25 million.

At the launch of Heraymila Investments and Heraymila Securities in Sri Lanka its Managing Director Vinod Krishnan in November said “We came to Sri Lanka at the height of the war and have gradually expanded our presence which shows we are a committed long term investor.”

Krishnan who has been associated with Al Mashal family for 18 years noted that in tandem with the dynamics of a country, GDP, opportunities and stock market, the Al Mashal family adjusts their asset allocation. “Like all ultra high net worth families in the world, Al Mashal focus is on capital preservation via investments and operating businesses and not rapid appreciation.

At Heraymila we continuously seek emerging and frontier markets and Sri Lanka is one with tremendous upside potential thanks to the end of the war,” Krishnan added.
With its footprint firmly established in Sri Lanka, Heraymila in November promised it will aggressively promote Sri Lanka as an investment and business destination among its worldwide clients. The forthcoming road show is part of delivering on that promise, Abeysuriya emphasised.

Sri Lanka was the first country where Heraymila has set up shop outside Dubai to launch financial services products and services. “The post war potential and outstanding talent pool were among the key magnets for this decision,” Krishnan pointed out in November.

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Saudi Arabian Heraymila Investments of Al Mashal's Start a Fund to Invest in Listed Sri Lankan Companies

Saudi Arabian Heraymila Investments of Al Mashal's Start a Fund to Invest in Listed Sri Lankan Companies

04th November 2010, www.bloomberg.com

Heraymila Investments Ltd., which manages Saudi Arabian entrepreneurAbdulaziz Al Mashal’s businesses, including private equity and real estate, will start a fund in Sri Lanka to benefit from the island’s growth.

Heraymila, based in Dubai, plans to raise at least 5 billion rupees ($45 million) for the fund that will invest in listed Sri Lankan companies. Faster economic growth with the end of Sri Lanka’s 26-year civil war in May 2009 is boosting company earnings and encouraging investments.

The fund, structured as a unit trust, will start raising money from investors in the Middle East and Asia by the middle of 2011, Ravi Abeysuriya, chief executive officer of Heraymila’s stock broking unit in Sri Lanka, said in Colombo today.

Heraymila, which manages $260 million in assets, will also set up a unit in Sri Lanka to channel private equity investment to the island, Abeysuriya said.

“The end of the civil war could add 2 percent to Sri Lanka’s growth each year,” said Shamubeel Eaqub, consultant economist for Heraymila Securities Ltd. “There are opportunities to invest in banks and construction firms. The consumer sector is a good long-term play given Sri Lanka’s burgeoning middle-class.”

The Colombo All-Share Index has doubled this year, making it the second-best performing index in the world behind the Mongolia Stock Exchange’s Top 20 index among benchmarks tracked by Bloomberg.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net.

To contact the editor responsible for this story: Stephen Foxwell at sfoxwell@bloomberg.net

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NTB of Sri Lanka Attacts Middle East Interest, Heraymila Investments Ltd (HIL) in Dubai’s International Financial Centre Bought a Major Stake

Heraymila of Saudi Arabia's Al Mashal Group Invests in Sri Lanka

01st November 2010, www.lankabusinessonline.com

The Sri Lanka unit Heraymila Investments, a part of Saudi Arabia's Al Mashal group will use its global links to channel funds from the Middle East and elsewhere with a strong research backed strategy, the head of its local unit said.

"We will be offering opportunities for Sri Lankan companies to raise funds tapping the relationships we have with international funds," Ravi Abeysuriya, group chief executive of Heraymila's Sri Lankan operations said.

"Our main strength will be our placement capabilities."

Heraymila bought into a licensed stock brokerage, formerly controlled by Amana, a Colombo-based Islamic finance group.

But Heraymila is also setting up divisions to handle investment banking and fund management.

Heraymila has been investing in Sri Lanka's equity market from 2005, and bought strategic stakes in several firms, including a 10 percent stake in Commercial Bank at one time.

"When peace came they were keen to play a more active part in the market, because they felt there were a lot of opportunities to attract foreign funds, including their own money," Abeysuriya said.

In addition to around 260 million dollars it is directly managing, Abeysuriya says the group co-invests around the globe with international finance houses such as JP Morgan and Goldman Sachs.

One of its strengths will be a strong research capacity. Abeysuriya himself at one time headed the Sri Lanka unit of Amba Research, a capital markets research outsourcing firm catering to US and European markets.

"The core of our value proposition is fundamental research, where we will be publishing quarterly research on the macro-economic situation, sectoral analysis and selected coverage of individual companies," he said.

Heraymila will also get into fund management. Abeysuriya says the group will structure funds that will meet the appetite for mutual funds abroad.

Tourists from Middle East to Sri Lanka Doubled in January 2010. Strongest Growth from Qatar, then UAE, Saudi Arabia and Kuwait

08th April 2010, firstlanka.com

The sources of the Sri Lanka Tourism Development Authority show that the number of tourists from the Middle East to Sri Lanka doubled in January 2010, when compared to the same month in the previous year.
The strongest growth has been registered from Qatar, which was up 171 percent, followed by the UAE (164 percent), Saudi Arabia (127 percent), and Kuwait (135 percent).

Heba Al Ghais Al Mansoori, Middle East Director of the Sri Lanka Tourism Promotion Bureau said that early indications pointed to double-digit growth” for the number of visitors from the region holidaying on this South Asian island this year.

“Sri Lanka is ideally positioned as a destination to attract more regional travellers despite the credit crunch as stability has finally dawned on Sri Lanka with the war coming to an end and the destination offers very good value for money,” Al Mansoori further stated.

NTB of Sri Lanka Attacts Middle East Interest, Heraymila Investments Ltd (HIL) in Dubai’s International Financial Centre Bought a Major Stake

18th November 2009, www.thebottomline.lk, By Azhar Razak

Heraymila Investments Ltd (HIL), a licensed entity based in Dubai’s International Financial Centre has recently bought a major stake of Sri Lanka’s upcoming commercial bank, Nations Trust Bank. HIL has acquired 2 million ordinary shares, nearly 1.19 percent of the bank’s total shareholding, NTB’s recent interim financials showed.

“I believe the acquisition could have been the decision of the head of HIL, who is already a major shareholder of NTB,” NTB Chief Executive Officer (CEO), Saliya G Rajakaruna told the TBL.

Abdulaziz M. A. Al Mashal, the CEO of HIL presently holds a major 2.52% stake of NTB while his company, HIL also holds some of his other investments in international private & public equity and debt, real estate, aircraft leasing and structured products.
Meanwhile, Mashal is also among the list of twenty largest shareholders of Commercial Bank of Ceylon representing a stake of a little over 3% of shareholding and has a minor stake at John Keells Holdings.

Mashal, who hails from a prominent family in Saudi Arabia has a track record in private wealth management, strategic planning, risk management, investment banking, international equity markets, Islamic finance, project financing and venture capital.