Fajr Capital has acquired 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 USD300m 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 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 (pictured), chairman of Fajr Capital, says: “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, chief executive of the MENA Infrastructure Fund, says: “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.”
