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Investcorp, headquartered in Bahrain, has been busy taking on higher investment exposures in healthcare, technology and real estate. Its new fund takes its focus onto opportunities in the Gulf and Middle East markets. Image Credit: Supplied

Dubai: The Asian Infrastructure Investment Bank (AIIB) will take an anchor funding role in one of the funds from Bahrain-based asset company Investcorp. The former is committing $90 million to the first close of the Aberdeen Standard Investcorp Infrastructure Partners’ new regional fund.

The fund had earlier received a commitment from Saudi wealth fund PIF for up to 20 per cent of its total size. It aims to participate in the “economic transformation” of the Gulf and the wider Middle East. The mission is to deliver solutions in health care, education, water, mobility and digital infrastructure that will benefit local communities and future generations.

With AIIB’s commitment, we will be able to contribute to the post-COVID-19 economic recovery in countries across the Middle East while generating value for our shareholders

- Sir Michael Fallon, Chairman of Aberdeen Standard Investcorp Infrastructure Partners

The GCC needs to increase infrastructure investment to accommodate a 30 per cent increase in population and a gradual increase in urbanization. "Given current fiscal pressures, attracting more private capital is the key to meeting this funding gap," Investcorp said in a statement. "AIIB’s contribution will not only directly mobilize the private capital the region needs by helping secure its first close, but provide a halo effect that will encourage other investors to contribute to the Fund."

For the Asian infrastructure bank, this is its first private investment in the MENA region. "This partnership will enhance AIIB exposure to the region and allow us to work with the leading investments and developments institutions in the region to support the sustainable infrastructure in AIIB members," said Saud Al Sayyari, Senior Investment Officer at AIIB. "We look forward to working with the management team to identify vital infrastructure projects that will contribute positively to communities and future generations.”