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London-based investment firm Gemcorp Capital is set to launch a $1 billion investment fund that will promote Saudi Arabia as an investment destination.
The fund, which will be in partnership with the Ministry of Investment Saudi Arabia (MISA), will offer both global and domestic investors “a unique opportunity” to invest directly in key projects that are aligned with Vision 2030 and Saudi’s broader economic development initiatives.
Gemcorp, which has facilitated more than $7 billion worth of investments since inception, will commit seed funding, while MISA will assist in establishing the fund and facilitate access to investment opportunities, according to a statement.
Investors will be offered a diverse range of investment products, including credit, equity and hybrid debt, complementing existing sources of funding available in Saudi Arabia.
Credit products will include structured debt, structured trade finance and convertible debt, while equity products will include common equity, preferred equity and other equity derivatives and hybrids.
“Gemcorp’s $1 billion fund will be a pivotal catalyst for our economic growth, poised to invigorate our key priority sectors,” said Salah Ali Khabti, Deputy Minister of Investment of Saudi Arabia.
“We believe this landmark fund launch will set the stage for others to follow, ushering in a new era of prosperity and innovation for our region.”
The independent investment management firm is focused on emerging markets. It is looking to invest at least $10 billion in Africa alone over the next ten years, mainly in the form of debt deals in partnership with other institutional investors.
(Writing by Cleofe Maceda; editing by Seban Scaria)
