Dubai International Capital (DIC), the private equity arm of Dubai Holding, has sold its stake in the $300 million MENA Infrastructure Fund to international Islamic investment firm Fajr Capital, the latter said today in a press statement.
While announcing its acquisition of DIC’s stake in the fund, Fajr Capital said it 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.
David Smoot, Chief Executive, DIC, said: “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.”
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 (ADIC), the Alsubeaei Group, the Government of Brunei Darussalam, the HSBC Group and Khazanah Nasional. The MENA Infrastructure Fund is its second investment this year.
“We feel privileged to be entrusted by DIC, HSBC and Waha Capital to contribute to the success of the MENA Infrastructure Fund,” said Adib AlZamil, Chairman of Fajr Capital, who described the transaction as an important milestone for the firm. “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,” he added.
“The transaction strengthens Fajr Capital’s position in the MENA region,” the statement said. “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,” it added.
The $300m MENA Infrastructure Fund is a 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 include Alexandria International Container Terminals, which runs terminals in Egypt’s two main commercial ports, Alexandria and Dekheila, in partnership with international operator Hutchinson Port Holdings; United Power Company, which runs a 270MW power plant in Manah, Oman, and is the region’s first independent power project with private sector participation; and Qurayyah IPP is a 3,927MW power plant under construction in Qurayyah, Saudi Arabia and is the largest combined cycle gas fired power plant project in the region.