Muscat – Rakiza – an infrastructure fund investing in Oman and Saudi Arabia and co-managed by Oman Infrastructure Investment Management (OIM) and Equitix – has successfully raised over US$1bn for its first infrastructure fund that received strong institutional demand.

In a press statement, Rakiza said it reached the target of its first fund on March 17, 2023 at over US$1bn and has already deployed 25 per cent of capital across three projects: a 30 per cent stake in a telecom tower portfolio in Oman; around 31 per cent stake in a gateway container terminal in the Port of Sohar; and a majority stake in Khazaen Fruit and Vegetable Central Market in Oman.

The fund invests in infrastructure projects that generate stable returns and yield income. It invests in renewables, power and water, social infrastructure, telecommunications and transport and logistics sectors.

Rakiza said that the pipeline of near-term investment opportunities is strong and there are several investments which are nearing financial close.

The fund actively seeks to create value through its investments while supporting the achievement of the relevant global sustainability and environmental, social and governance (ESG) targets set by its key investors. By considering ESG factors, Rakiza aims to provide a positive long-term impact on society and the planet, while at the same time positively impacting financial performance.

Muneer al Muneeri, OIM CEO, said, “Our target of raising over US$1bn is an important milestone, which will help Rakiza in further growing our infrastructure fund initiatives in the region. The success of and appetite for the fund demonstrates the need for sophisticated financial investors for this asset class. We look forward to supporting our investors and stakeholders in meeting their requirements.”

Hugh Crossley, Equitix co-founder and CEO, said, “The GCC is an attractive home for smart capital, and an exciting investment destination for those with local access. We are pleased to have such strong and growing partnerships with the region’s leading institutional investors. Driven by Rakiza’s local investment teams in Muscat and Riyadh offices, we aim to deliver on the fund’s return objectives, by investing in, and developing, compelling essential infrastructure projects.”

Rakiza Fund is co-managed by Oman Infrastructure Investment Management (OIM), a specialist infrastructure manager based in Oman, and Equitix, a leading investor, developer and fund manager of core infrastructure assets in the UK, Europe, US and the Middle East. The managers joined forces to establish a fund that will invest in public private partnership (PPP) and other core infrastructure projects in Oman and Saudi Arabia.

The Rakiza Fund’s strategy is to capitalise on the drive towards privatisation and foreign direct investment (FDI) across the region, where first mover investors, with access to opportunities, are generally able to achieve higher returns.