Manama (Union) The Asian Infrastructure Investment Bank announced that it is contributing to the new regional fund “Aberdeen Standard and Investcorp in Infrastructure Investment” by committing $90 million as a major investor in the fund, along with the Public Investment Fund of Saudi Arabia, which has committed to invest Up to 20% of the total volume of the said fund.
The fund aims to participate in the economic transformation of the countries of the Gulf Cooperation Council and the Middle East and North Africa region. With environmental and social governance and the United Nations Sustainable Development Goals at the core of its philosophy, the Fund’s mission is to provide solutions in health care, education, water, transportation and digital infrastructure that will benefit societies and future generations.
The GCC countries urgently need to increase investment in infrastructure to accommodate a 30% growth in population and a gradual development in cities. It is not possible to close the financing gap and keep pace with this demographic growth only through the employment of private capital. In addition to the contribution of the Asian Infrastructure Investment Bank to secure the first closure of the fund, it will also generate an impact that encourages other investors from all over the world to contribute to the fund.
Saud bin Abdullah Al-Sayyari, Senior Investment Analyst at the Asian Investment Bank, said: “We are pleased to announce our partnership with Aberdeen Standard and Investcorp in Infrastructure Investment in the first investment of the Asian Investment Bank in infrastructure in the Middle East and North Africa. This partnership will contribute to Strengthening the Bank’s presence in the region and diversifying its current portfolio. It will also open up prospects for us to work with the leading investment and development agencies in the region to support the sustainable development of infrastructure, and through partnership with a leading global fund manager such as Investcorp and Aberdeen Standard, we will be able to support infrastructure projects in vital sectors for countries members in the region.
Sir Michael Fallon, Head of Investcorp’s Aberdeen Standard Infrastructure Partnership, said: “When we launched the partnership between Aberdeen Standard and Investcorp, we combined Aberdeen Standard’s strong track record of investing in social infrastructure projects with Investcorp’s longstanding experience in the region, creating an avenue for investment in infrastructure projects. The decision of the Asian Investment Bank in the Investcorp Fund and Aberdeen Standard Infrastructure Fund in the Gulf, comes to enhance the economic recovery across the countries of the Middle East, especially after the Covid-19 pandemic, while creating value for our shareholders at the same time.
Sami Al-Nafati, Managing Partner of the Aberdeen Standard-Investcorp Fund, said: “Investment in infrastructure for the GCC countries offers attractive opportunities from regional growth and government initiatives, especially as this sector is stable and provides long-term predictable cash flows.”