Arab News, Sat, Apr 27, 2024 | Shawwal 18, 1445
China’s wealth fund joins with Bahrain’s Investcorp for $1bn Middle East investment
Bahrain:
China’s growing interest in the Middle East
continues as the country’s sovereign wealth fund partnered with Bahrain’s
Investcorp to establish a $1 billion investment pot.
According to a press statement, Investcorp Golden
Horizon fund will assist companies across Saudi Arabia, the wider Gulf
Cooperation Council region and China.
The reserve will be anchored by reputable
institutional and private investors from the GCC, as well as China Investment
Corp.
The press statement revealed that target companies
are expected to have high growth potential in sectors including consumer, health
care, logistics and business services.
“During the past couple of years, we have built
several bilateral funds with leading financial institutions to facilitate
industrial cooperation between China and major economies in the world,” said Bin
Qi, executive vice president and chief information officer at CIC.
He added: “Currently, we are working closely with
Investcorp to build a similar bilateral fund to strengthen financial and
industrial ties between China and GCC countries.”
This commitment from CIC comes when the GCC’s
appeal to institutional investors is gathering pace, thanks to its stable
regulatory environment and pro-business policies, driven by economic
diversification efforts in the region and strategic privatization mandates.
“This commitment by CIC, one of the world’s
largest sovereign wealth funds, is a testament to Investcorp’s unparalleled
franchise in the GCC and reinforces the trust placed in the firm’s global
platform and teams. We are looking forward to building on this relationship and
growing our partnership in the future,” said Mohammed Al-Ardhi, executive
chairman of Investcorp.
Co-CEO of Investcorp Hazem Ben-Gacem said the
launch of the new fund will facilitate cross-border cooperation and investments
between the GCC and China.
Trade and economic relationships between the
Middle East and China have always been strong.
In 2023, China’s exports to Saudi Arabia and the
UAE amounted to $42.86 billion and $55.68 billion respectively.
On the other hand, the Asian giant’s imports from
Saudi Arabia totaled $64.36 billion in 2023.
In November, Saudi Arabia’s central bank, also
known as SAMA, and the People’s Bank of China signed a local currency swap
agreement worth $6.93 billion.
SAMA, in a statement, said that the three-year
agreement “has been established in the context of financial cooperation between
the Saudi Central Bank and the People’s Bank of China.”
The Asian country’s central bank said that the
agreement will help strengthen financial cooperation between Saudi Arabia and
China, promote the use of local currencies, and strengthen trade and investments
between nations.