ERAM Secures Strong Credit Ratings and Eyes Debt Market Entry
ERAM Gains Global and National Credit Ratings
In May 2025, ERAM secured a B+ global credit rating from S&P Global. The agency also assigned ERAM a BB+ national Saudi credit rating. These ratings strengthen ERAM’s profile and support its global funding and expansion plans. They reflect the company’s diversified operations, sound governance, and consistent revenue performance in recent years.
ERAM Plans Debt Issuance to Fuel Growth
ERAM plans to enter the debt capital markets by the end of 2025. The company has begun talks with lenders and global investment banks. Debt issuance will fund ERAM’s expansion across its five core business verticals. These include technical services, healthcare, tourism, industrial support, and R&D and manufacturing. It seeks long-term funding to support sustainable development and strategic investments across all business units.
Sukuk Option Under Evaluation
ERAM is evaluating investor appetite for a sukuk issuance. The company views sukuk as a gateway to regional and global investors. “We may announce our move by end-2025 or earlier,” said Sarfraz Mohamed. A sukuk could appeal to Shariah-compliant investors seeking stable returns and low-risk opportunities.
IPO Consideration Not Immediate
An IPO remains under consideration but not part of ERAM’s short-term strategy. “We’re focusing on visibility and market access first,” Mohamed told Zawya. Public listing may follow once ERAM optimizes its capital structure and growth trajectory.
Strong Growth and Vision 2030 Alignment
They targets 15% growth in 2025 and slightly more in 2026. Capex already supports expansion in R&D and manufacturing, aligned with Vision 2030 goals. ERAM’s power electronics plant is the GCC’s first of its kind. Its R&D center in Bangalore drives innovation and product development. New projects will strengthen supply chains and boost Saudi industrial self-reliance.
S&P Projects Solid Financial Metrics
S&P expects 12%–16% revenue growth in 2025 and up to 28% in 2026. The agency forecasts 30%–40% EBITDA growth, boosting ERAM’s financial strength. ERAM’s leverage could fall from 2.1x in 2024 to as low as 1.3x in 2025. Stronger margins and scale efficiencies will support stable cash flow and investor confidence.
ERAM Builds Regional and Global Presence
Company employs over 11,000 people across operations in Saudi Arabia, India, and the UAE.
Dr. Siddeek Ahamed leads ERAM as Chairman and Managing Director. ERAM continues building a sustainable, innovation-driven future with regional and global reach. The company aims to become a leading player in diversified sectors across emerging markets.