Riyadh: UK-based Gemcorp Capital unveiled plans for an inaugural investment fund of $1 billion for Saudi Arabia on Wednesday. The international asset manager, focused on emerging markets, will offer investors an opportunity to invest in key projects aligned with Saudi Arabia’s Vision 2030.
Gemcorp officials said the fund’s strategy will offer a diverse range of investment products, including credit, equity and hybrid debt, complementing existing sources of funding available in Saudi Arabia. Credit products will encompass structured debt, structured trade finance and convertible debt. Equity products will include common equity, preferred equity and other equity derivatives and hybrids.
The fund is a product of a partnership between Gemcorp and the Ministry of Investment Saudi Arabia (MISA). Gemcorp will commit seed funding, while MISA will assist in establishing the fund and will facilitate access to investment opportunities.
Khalid A Al-Falih, Minister of Investment of Saudi Arabia, said, “Saudi Arabia has recently become very attractive to global investors, and this fund will provide further investment support for key sectors such as energy, infrastructure, and mining and minerals. This investment fund is also aligned with Saudi Vision 2030 for a more prosperous and sustainable future for our country.”
MISA aims to promote investment in key sectors of the Saudi economy, including energy, mining and minerals, infrastructure and tourism.
Salah Ali Khabti, Deputy Minister of Investment of Saudi Arabia, said, “FDI has been a transformative force in our local economy, fostering job creation and empowering women in the workforce. Gemcorp’s $1 billion fund will be a pivotal catalyst for our economic growth, poised to invigorate our key priority sectors.”
Gemcorp has completed more than $7 billion of private credit transactions in global emerging markets, from the Middle East and Sub-Saharan Africa to South America, Southeast Asia, and Eastern Europe.
Atanas Bostandjiev, Founder and CEO of Gemcorp, added, “Saudi Arabia is a key focus market, offering a favourable investment environment and unique opportunities to develop innovative financial solutions for public and private stakeholders in our three priority sectors: energy, infrastructure, and minerals and mining. We aspire to make this fund the first of a series of follow-on funds in the Kingdom.”