Bahrain's Investcorp collaborates with Chinese partners to pour $1 billion into Gulf and Asian economies.
In a significant move towards economic diversification, the Gulf states have secured a $1 billion investment fund from China's sovereign wealth fund, the China Investment Corporation (CIC). The fund, named "Investcorp Golden Horizon," will focus on high-growth potential companies in sectors such as consumer, healthcare, logistics, and business services.
The fund, part of Investcorp's platform, has already made strategic investments in the Gulf region. Notable investments include Saudi logistics startup, Trukker, and telecom hub, NourNet. The fund's main objective is to expand warehousing capacity and logistics infrastructure, capitalising on the rising demand for such facilities in rapidly developing markets.
The agreement with CIC gives Investcorp the backing of one of the world's largest sovereign wealth funds, managing about $1.3 trillion in assets. This partnership is expected to help Beijing solidify its economic ties in the Gulf and forge closer partnerships with the region's royal families.
Meanwhile, the Gulf states are expanding their economic partnerships outside the West. Earlier this month, Microsoft signed a deal to invest $1.5bn in Abu Dhabi's artificial intelligence group, G42, which is chaired by Sheikh Tahnoun bin Zayed al-Nahyan, the UAE's national security advisor.
The push for economic diversification continues despite global attention on Israel's war on Gaza. The Gulf region's IPO market has outshined the US and Europe, with investment bank EFG Hermes predicting a strong IPO market in the Gulf.
Investcorp's biggest shareholder is Abu Dhabi's sovereign wealth fund, Mubadala Investment Company. The US is competing vigorously in the region, with the "Investcorp Golden Horizon" fund operating in the Gulf and Asia, aiming to invest in companies in Saudi Arabia, the Gulf region, and China.
[1] Source: The National News (UAE)
- The "Investcorp Golden Horizon" fund, with its focus on sectors like consumer, healthcare, logistics, and business services, aims to analyze high-growth potential companies in the Gulf states.
- The new investment fund, backed by China's sovereign wealth fund, the China Investment Corporation (CIC), has already made noteworthy investments, such as in Saudi logistics startup, Trukker, and telecom hub, NourNet.
- As part of its strategy, the fund intends to increase warehousing capacity and improve logistics infrastructure, capitalizing on the growing demand for such facilities in expanding markets.
- The partnership between Investcorp and the CIC is anticipated to have significant implications, helping Beijing strengthen its economic relationships in the Gulf and deepen ties with the region's royal families.
- Despite geopolitical tensions, the Gulf states are broadening their economic alliances, as demonstrated by Microsoft's $1.5 billion investment in Abu Dhabi's artificial intelligence group, G42.
- The US is also actively contending for a strong presence in the region, as the "Investcorp Golden Horizon" fund, with its ambition to invest in companies in Saudi Arabia, the Gulf region, and China, operates in both the Gulf and Asia.
