Fajr Capital Limited has announced its acquisition of Dubai International Capital ‘s stake in the MENA Infrastructure Fund. Fajr Capital will take its place alongside the two other general partners and co-sponsors of the fund, HSBC Bank Middle East and Abu Dhabi-based Waha Capital , and will also be a limited partner with other regional and international investors.
Fajr Capital is an international Islamic investment firm with a focus on financial services and other strategic sectors in key Muslim markets. It is backed by the Abu Dhabi Investment Council, the Alsubeaei Group, the Government of Brunei Darussalam, the HSBC Group and Khazanah Nasional. The MENA Infrastructure Fund is its second investment this year.
The transaction strengthens Fajr Capital’s position in the MENA region. It builds exposure in the key markets of Egypt, the Sultanate of Oman and the Kingdom of Saudi Arabia, increases the firm’s assets under management and brings in a dedicated team of investment professionals with a strong track record in the MENA infrastructure and energy sectors.
The MENA Infrastructure Fund is a USD 300m Dubai-based specialist asset manager established in 2007 to invest in infrastructure and energy projects in the Middle East and North Africa. Its three investments to date are strong, stable projects in key markets. Alexandria International Container Terminals runs terminals in Egypt’s two main commercial ports, Alexandria and Dekheila, in partnership with international operator Hutchinson Port Holdings. United Power Company runs a 270 megawatt power plant in Manah, Oman, and is the region’s first independent power project with private sector participation. Qurayyah IPP is a 3,927 megawatt power plant under construction in Qurayyah, Saudi Arabia and is the largest combined cycle gas fired power plant project in the region.
Adib AlZamil, Chairman of Fajr Capital, described the transaction as an important milestone for the firm: “We feel privileged to be entrusted by Dubai International Capital , HSBC and Waha Capital to contribute to the success of the MENA Infrastructure Fund. This investment combines several commercial advantages: high-quality infrastructure assets, a seasoned management team and the platform to launch further funds with world-class partners. It also creates social value by connecting financial services to the real economy and by supporting a vital sector in the MENA region.”
Mark Lemmon, CEO of the MENA Infrastructure Fund, said, “We are delighted with this development. Fajr Capital’s excellent relationships and financial strength perfectly complement the qualities and strengths of our existing sponsors HSBC and Waha Capital and will help us to continue to be successful.”
David Smoot, Chief Executive, Dubai International Capital , added: “This is another successful exit for DIC and follows a string of profitable exits of regional portfolio assets in recent months. MENA Infrastructure Fund has a good track record and I am confident Fajr Capital will prove a strong partner in taking the business to its next stage of development. We wish them success alongside Waha Capital and HSBC .”
Commenting on the transaction, HE Hussain J Al Nowais, Chairman of Waha Capital , said: “Fajr Capital’s investment in the MENA Infrastructure Fund is a confirmation of the fund’s regional significance and will help to ensure its continuing success. As a co-founder of the fund, Waha Capital remains committed to supporting the growth and development of strategic infrastructure assets, which is in line with our diversified investment strategy. We are delighted to enter into this partnership with Fajr Capital and look forward to working with them as well as HSBC in the future development of the fund.”
Richard Cole, Global Head of Principal Investments and Private Equity at HSBC Group, added:
“Fajr Capital is a strong and experienced partner and we are very happy that they have joined us as a sponsor of the MENA Infrastructure Fund. The Fund will benefit greatly from the depth of Fajr Capital’s knowledge and relationships in the MENA region.”
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