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Saudi-based private conglomerate ERAM Holdings, which operates across multiple sectors including oil and gas, utilities, and petrochemicals and giga projects, is planning to tap the debt markets before the end of the year and has already started discussions with potential lenders.
ERAM currently operates across five key verticals which include specialised technical support services, travel and tourism, healthcare, R&D & manufacturing, and industrial support services.
In May 2025, the company secured a global credit rating of B+ and a national Saudi credit rating of BB+ from S&P Global, a development that is expected to support the conglomerate’s global expansion efforts and facilitate its transition to capital markets-based funding.
“Very few companies hold the B+ and BB+ Saudi national credit rating. Long term we are looking at what kind of instruments we can use in the global and regional markets,” ERAM’s Director of Corporate Development & Partnerships, Sarfraz Mohamed told Zawya.
“While an IPO is under consideration, it is not imminent,” he added.
Accessing the debt capital markets would help fuel ERAM’s growth across its manufacturing, healthcare, Travel and specialised technical services verticals.
“I believe this is the first step in getting ourselves visible to investors,” he added.
The conglomerate has been in discussions with global investment banks and is exploring the investor appetite if it were to issue a sukuk. “By the end of 2025, perhaps sooner, we should make some announcements and moves towards the debt capital markets,” he said.
ERAM is aiming at a 15% growth for 2025 and little more than that for 2026. “We have already made some capex investments in the manufacturing, R&D facilities, and we have future plans of expansion aligned with vision 2030 mandates and that’s one of the major reasons why we are looking at the debt markets, Mohamed said.
According to ERAM, its power electronics manufacturing facility in the kingdom is the first of its kind in the GCC. It’s R&D center in Bangalore, India, caters product development.
S&P anticipates revenue growth of approximately 12%–16% in 2025 and 24%–28% in 2026. The stable outlook reflects expectation that ERAM could significantly expand its EBITDA, benefiting from substantial growth opportunities in Saudi Arabia.
The rating agency expects ERAM to report S&P Global Ratings-adjusted leverage of 2.1x in 2024, declining to 1.3x-1.7x in 2025, supported by a strong 30%-40% EBITDA growth and limited financial debt.
Dr. Siddeek Ahamed is the Chairman & Managing Director of Eram Holdings, which employs more than 11,000 people and maintains regional offices in India and the UAE.
(Reporting by Seban Scaria; editing by Daniel Luiz)
