The Asian Infrastructure Investment Bank is committing $90 million to an infrastructure fund set up by Aberdeen Standard Investments and Bahrain-based alternative asset manager Investcorp.
The Aberdeen Standard Investcorp Infrastructure Partners’ Fund will focus on investment opportunities in the healthcare, education, water, mobility and digital infrastructure of the GCC and the broader Middle East and North Africa region, Investcorp said on Monday.
The company did not disclose the size of the fund.
“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,” Saud Al Sayyari, a senior investment officer at AIIB, said.
AIIB is keen to “identify vital infrastructure projects that will contribute positively to communities and future generations”, he said.
The AIIB announcement follows Saudi Arabia’s sovereign wealth fund’s backing in June. The Public Investment Fund’s has committed to contribute capital of up to 20 per cent of ASIIP’s total size.
The infrastructure fund aims to participate in the economic transformation of the region, with environmental, social and governance principles and the UN Sustainable Developments Goals at the heart of its investment philosophy.
The six-member economic bloc of GCC needs to increase infrastructure investment to accommodate a 30 per cent increase in population and attract private capital that is key to meeting funding gaps in the sector, Investcorp said.
“AIIB’s contribution will not only directly mobilise the private capital the region needs … but will also provide a halo effect that will encourage other investors to contribute to the fund,” it said.