Abu Dhabi investment company Waha Capital has bought a minority stake in Dubai-based oilfield services and manufacturing company Petronash Holdings worth $88 million, Trade Arabia reported.

Waha has the option to further increase their share of in Petronash up to 50%. As a part of the deal, Petronash will establish research and development centers in Chennai, India and Dammam, Saudi Arabia with the objective of driving innovation and widening the company’s services, product lines, and customer base.

“For Waha Capital, this is a hugely promising investment that pushes forward our strategy of making focused direct investments in highly cash-generative companies in our areas of expertise, which include energy, technology, and financial services,” said Chief Executive Michael Raynes.

“Petronash is a mature and very successful business and we are confident of the company’s high potential for further growth, given its leading position in its industry, and its investment in technology and innovation,” he continued.

Petronash’s projected revenue for 2018 is roughly $200 million. By offering reductions in operational costs through its services, the company has remained stable through oil price fluctuations.

“Petronash has built an unbeatable reputation for providing first-class project management and solutions across the hydrocarbon value chain, through our highly experienced teams and focus on quality and safety,” Petronash chairman, U M Rao, said.

“With the success and reputation gained in the Middle East, it was time for us to focus on Russia, North Africa, and other regions. In Waha Capital, we found a premium investment company with a strong regional network. This strategic investment creates a win-win situation, as both parties are leaders in their respective fields,” he added.