Investcorp plans to invest $1bn in Gulf businesses

Bahrain-based investment bank Investcorp expects to complete its first transaction soon for a $1 billion (Dh3.67bn) private equity fund.

The bank is looking to invest in small- and medium-size businesses in the Gulf ranging from infrastructure to transport, healthcare and petrochemicals. It has studied more than 120 Gulf Arab firms through the Gulf Opportunity Fund.

"We are very actively looking at potential deals and will announce one shortly," Managing Director Khalid Al Rumaihi said on the sidelines of a conference in Dubai. He declined to give more details or be more specific.

The investments would typically range between $20m and $150m in size, the fund's co-head Christophe De Mahieu said in November. "We see opportunities coming up because of growth in the Gulf and a lot of industry development not related to oil such as healthcare and education," Rumaihi said.

Gulf economies are booming on a sevenfold increase in the price of oil since 2002, and regional governments are taking advantage of the windfall to improve infrastructure and diversify their economy away from oil and gas revenues.

Investcorp expects to raise the full $1bn for the open-ended fund by July, Rumaihi said.