Siraj Capital, a Saudi-based investment group, is in talks to set up a private equity fund worth initially up to $100 million (Dh367m) to acquire small and medium-sized firms in the kingdom, its top executive said.
"We are now in very preliminary discussions with local institutions... probably the first size will be $50-100m, in that range, to invest specifically in medium and small companies," Chief Executive Ibrahim Mardam-Bey said.
The firm will use the fund to make three to four acquisitions in the hospitality, food and beverage sectors, as well as the service industry sector.
"We think consumer-driven businesses such as budget hotels, casual dining and food and beverage are a big sector we are looking at right now... also the services industries that feed into infrastructure," he said on the sidelines of a private equity conference.
Saudi Arabia, which has a growing population that exceeds 25 million, is undertaking infrastructure projects worth billions of dollars, attracting both local and foreign investors to the region.
Last year, Siraj Capital made three investments in Saudi Arabia.