Energy Capital Group (ECG) has announced the successful acquisition of Dar Al Balad Contracting (DAB) through its investment vehicle, ECG2.0-Fund2. This acquisition marks a significant milestone in ECG's strategy to build a leading industrial services national champion, with plans to list the platform on Tadawul within the next two years.
The acquisition further solidifies ECG2.0-Fund2's position as a key player in Saudi Arabia's Power and Water Industrial Services sector. This move aligns with Vision 2030, reinforcing ECG's commitment to enhancing the Kingdom's industrial infrastructure and supporting national energy and utility initiatives.
DAB: A Leading Provider of Industrial Services
DAB has established itself as a premier engineering service provider, specializing in maintenance solutions for the Saudi Electricity Company (SEC) and other key industrial clients. The company's expertise ensures the reliability, efficiency, and operational integrity of critical infrastructure in the Power and Industrial sectors.
DAB's core services and products include:
Inspection, Overhaul, and Repair of Gas and Steam Turbines, Supercritical boilers, Heat Recovery Steam Generators (HRSG), and their auxiliaries.
Supply and install Steam Water Analysis System (SWAS), chemical cleaning, and specialized manpower supply.
Equipment Installation – HVAC systems, cooling towers, ID / FD fans, pumps, and valves.
GT Compressor Water Wash skids for gas turbine, Cyclone Vacuum Dust collection system.
Manufacturing Mechanical Seals, Supply and installation of Expansion Joints
Fire Protection Systems – Supply and installation of fire protection, fire alarm, and firefighting systems
Electrical & Instrumentation – Cabling, CCTV, control panels, and temperature control instruments
Strategic Expansion Through STEGIS-KSA Joint Venture
In 2013, DAB entered into a joint venture with STEG-IS, forming the Saudi Tunisian Electricity, Gas & Industrial Services Company (STEGIS-KSA). DAB holds a 50% stake in the partnership, focusing on turbine maintenance, while STEG-IS specializes in Turbine and boiler maintenance. This collaboration enhances service capabilities and unlocks new growth opportunities by leveraging cross-client relationships.
ECG's Vision: Building a National Industrial Services Champion
The acquisition of DAB represents the latest addition to ECG's Industrial Services National Champion Platform, a strategic initiative aimed at consolidating and scaling leading industrial service providers into a single, high-growth entity.
ECG plans to list this platform on Tadawul within the next two years, creating a publicly traded entity that will drive sector-wide innovation, operational excellence, and long-term value creation for stakeholders across the region.
Leadership Perspectives
Akram Alrabayah, General Partner of ECG, stated:
"The acquisition of Dar Al Balad Contracting is a key step in ECG2.0-Fund2's strategy to build an integrated industrial services platform that supports Saudi Arabia's economic growth and infrastructure development. DAB's strong reputation, technical expertise, and client relationships make it a valuable addition to our portfolio. We look forward to accelerating its growth and enhancing its operational capabilities."
Bassam I. Ibn Salamah, Managing Director of DAB, commented:
"This partnership with ECG2.0-Fund2 is a transformative moment for DAB. With ECG's support, we are well-positioned to expand our service offerings, strengthen our market presence in GCC, and further enhance our contributions to Saudi Arabia's Power and Water sectors. We are excited about the opportunities ahead as part of ECG's national champion platform."
