Abu Dhabi: The Abu Dhabi Investment Company (ADIC) said on Monday it has joined hands with UBS Global Asset Management, one of the world's leading asset management firms, to form a 50:50 joint venture that will develop, promote and manage infrastructure investment funds focused on the Middle East and North Africa (MENA) region.
At a news conference here, ADIC chairman Khalifa Al Kindi, said the joint venture's first fund, ADIC-UBS Infrastructure Fund - I, will be a $500 million fund which is expected to be launched during the first half of 2008.
The fund will focus on making equity and quasi-equity investments in utilities, transport, social and energy related infrastructure projects.
"The MENA region is going through a phase of profound expansion which has led to an increased demand for infrastructure to support continued growth and the fast growing populations.
"This, coupled with the fact that governments are increasingly looking towards securing private sector participation, means that there are tremendous opportunities to invest alongside major contractors and operators in world class projects which provide attractive risk adjusted returns,'' said Al Kindi.
"We estimate that the MENA region will witness up to $500 billion worth of investment over the next ten years across key infrastructure sectors and, in particular, the transport and utilities sectors.
"The bringing together of a major regional and a major global player with excellent deal sourcing and deal execution abilities will put us in a tremendous position to take advantage of the significant investment opportunities in the regional infrastructure market." Al Kindi added.
Al Kindi said as of the end of 2007, ADIC's “equity base is Dh2.2 billion.''
Mark Nicholas Thompson, executive director with ADIC, said the proposed $500 million fund will be “deployed over a period of 3 to 4 years.''
