Fosun's Global Operations Focus on the Middle East to Explore New Growth Prospects

Rhea-AI Summary

Fosun, a Chinese private enterprise, is intensifying its global operations in the Middle East. Recent activities include:

• Roc Oil's offer to acquire Tethys Oil AB for RMB 1.302 billion
• Hainan Mining's MoU with Ajlan & Bros Holding for a lithium salt plant in Saudi Arabia
• FFT's joint venture with Khaled Juffali Company in Saudi Arabia
• Club Med's entry into Oman with the Club Med Musandam project

Fosun's overseas revenue reached RMB 45.87 billion in H1 2024, a 4% YoY increase, accounting for 47% of total revenue. The company operates in over 35 countries and regions globally. Fosun's Chairman, Guo Guangchang, emphasizes the company's role as a strategic partner for Middle Eastern businesses, leveraging its global operational capabilities and deep roots in the Chinese market.

Positive

• Roc Oil's acquisition offer of RMB 1.302 billion for Tethys Oil AB to gain oil field rights in Oman
• FFT secured its first project in Saudi Arabia's automotive sector
• Club Med's expansion into Oman with a new resort project
• Overseas revenue increased by 4% YoY to RMB 45.87 billion in H1 2024
• Club Med's revenue reached RMB 8.89 billion, a 10.3% YoY increase in H1 2024
• Fidelidade's total international business premiums reached EUR 1.7 billion, an 11% YoY increase in 2023

Negative

• None.

HONG KONG, Oct. 9, 2024 /PRNewswire/ -- Among many Chinese private enterprises, Fosun stands out for its early start in globalization, firm execution, and strong operational capabilities.

Recently, Fosun has been very active in the Middle East region. In September, Fosun's subsidiary, Hainan Mining's wholly owned subsidiary, Roc Oil, made a full offer to acquire Tethys Oil AB for approximately RMB 1.302 billion, aiming to acquire oil field rights in several blocks in Oman.

In July, Hainan Mining signed a memorandum of understanding with Ajlan & Bros Holding to explore the feasibility of a lithium salt plant project in Saudi Arabia. They also plan to establish an industrial fund focused on upstream lithium resources, local mineral exploration, and global investments in new energy metal resources and technology.

In the same month, FFT, a global leader in flexible automation production line solutions under Fosun, signed a joint venture agreement with Saudi family business Khaled Juffali Company (KJC). The plan is to establish a commercial technology entity in Saudi Arabia, and collaborate with Shanghai Easun Technology, FFT's parent company under Fosun, to provide automated production line solutions for Saudi Arabia's electric vehicle industry. The joint venture has already secured its first project in Saudi Arabia's automotive sector.

Moreover, FFT plans to expand into other industries in Saudi Arabia that require automation and robotic assembly. With its extensive expertise in automation and robotics technology, FFT is expected to set new industry standards in Saudi Arabia.

In May, Club Med, a global leader in all-inclusive holidays, announced its entry into the Middle East market, launching its first project in Oman—Club Med Musandam. This project marks a deep collaboration between Club Med, the Royal Court Affairs of Oman, and Omran Group. The resort is set to begin construction in early 2026 and is expected to open in 2028.

"The Best Strategic Partner"

With its vibrant and robust economic growth, the Middle East is becoming a key frontier for Fosun's global operations. Achieving multiple industrial and project results in such a short time demonstrates Fosun's efficient execution and underscores its confidence and determination in the Middle Eastern market.

Fosun International Chairman, Guo Guangchang, stated: "Fosun looks forward to establishing long-term and stable strategic cooperation with more Middle Eastern partners. As a company with global operational capabilities and deep roots in the Chinese market, I believe Fosun is the best strategic partner. With our global operational capabilities and extensive experience, Fosun can achieve sustainable value growth with Middle Eastern partners and create a new win-win ecosystem."

Under the guidance of Saudi Arabia's "Vision 2030", the country is quickly becoming a hub for sports, especially esports. At the recent Esports World Cup held in Riyadh, Fosun Sports' Wolves Esports Club won two championships in "Teamfight Tactics" and "Honor of Kings." With Saudi Arabia's continued investment in esports and Fosun Sports' excellent performance in both football and esports, further collaboration between the two sides is expected.

As one of the pioneers of Fosun's global expansion, Fosun Pharma is accelerating its layout in the Middle East market. In June, Fosun Pharma's Henlius' biosimilar drug HANQUYOU was launched in Saudi Arabia, likely becoming the first domestic monoclonal antibody drug to enter the Middle Eastern market.

Global Operations Rooted in China

Fosun's globalization began in 2007 when Fosun International was listed in Hong Kong, marking over 17 years of global operations. Its diverse industries cover pharmaceuticals, tourism, insurance, sports, energy, fashion, medical technology, intelligent manufacturing, and more. Through its "global operations + local organization" model, Fosun has facilitated mutual empowerment across different industries and countries, achieving rapid growth.

In the first half of 2024, Fosun's total revenue reached RMB 97.84 billion, of which overseas revenue was RMB 45.87 billion, a year-on-year increase of 4%, accounting for 47% of the total revenue. Over the past ten years, Fosun's overseas revenue has had a compound annual growth rate of 55%. Fosun now has an extensive business presence in more than 35 countries and regions globally.

Since Club Med joined Fosun in 2015, it has continuously expanded its global market, now operating nearly 70 premium resorts across six continents. It has also launched new product lines for the Chinese market, achieving rapid growth. In the first half of 2024, Club Med's revenue reached RMB 8.89 billion, a year-on-year increase of 10.3%, further consolidating its global leadership in mountain resorts.

In 2014, Fosun acquired Fidelidade, the largest insurance company in Portugal. Over the past decade, through deep industrial operations and resource synergy, Fosun has successfully expanded Fidelidade's business to 12 countries across Europe, Africa, and Latin America. In 2023, Fidelidade's total international business premiums reached EUR 1.7 billion, a year-on-year increase of 11%. The share of international business has grown from 6% in 2017 to 17% in 2023.

Guo Guangchang, Chairman of Fosun International, said: "We are proud to have become one of the few Chinese companies rooted in China with global operational capabilities. Fosun will continue to advance its globalization strategy, transforming its global capabilities into sustained profit growth."

In its global operations, Fosun excels at collaborating with local governments, accumulating rich experience and resources, and successfully aligning projects with national policies. With Fosun's increased investment in the Middle East, its global network and operational capabilities provide strong support for the successful implementation of projects, ensuring alignment with national development goals and successful project execution.

With its global operational capabilities, Fosun not only deeply understands the Chinese market but also brings new opportunities to Middle Eastern enterprises and investors through its replicable global experience.

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SOURCE Fosun

FAQ

What is Fosun's recent acquisition offer in the Middle East?

Fosun's subsidiary, Roc Oil, made a full offer to acquire Tethys Oil AB for approximately RMB 1.302 billion, aiming to acquire oil field rights in several blocks in Oman.

How much did Fosun's overseas revenue grow in H1 2024?

Fosun's overseas revenue reached RMB 45.87 billion in H1 2024, a year-on-year increase of 4%, accounting for 47% of the total revenue.

What is Club Med's expansion plan in the Middle East for FOSUY?

Club Med announced its entry into the Middle East market with the launch of Club Med Musandam in Oman, set to begin construction in early 2026 and expected to open in 2028.

What joint venture did FFT establish in Saudi Arabia for FOSUY?

FFT signed a joint venture agreement with Saudi family business Khaled Juffali Company (KJC) to establish a commercial technology entity in Saudi Arabia, providing automated production line solutions for the electric vehicle industry.