Muscat – Rakiza Fund, Oman’s private equity infrastructure fund committed to investing across various infrastructure assets in Oman and Saudi Arabia, has announced the financial close of its first transaction in Saudi Arabia. The fund has acquired a 40% stake in Saudi-based Tihama Power Generation Company.

Tihama Power comprises four Combined Heat and Power (CHP) plants located at Ras Tanura, Ju’aymah, Shedgum, and Uthmaniyah in the Eastern Province of Saudi Arabia. These plants produce 1,600MW of electrical power and 6.3mn pounds per hour of process steam and have been operational since 2006.

The output of Tihama Power is consumed by Saudi energy giant Aramco through a long-term agreement.

Rakiza will partner with the French utility and energy giant Engie on this project. Engie, a world-class infrastructure manager, holds a 60% share in Tihama Power.

By implementing CHP technology, Tihama Power prioritises energy efficiency by capturing and utilising heat that would otherwise be wasted, thereby avoiding distribution losses.

Rakiza Fund is independently co-managed by the regulated independent fund manager Oman Infrastructure Investment Management (OIM) and the UK-based investor, developer, and fund manager Equitix.

Muneer al Muneeri, OIM Founder and CEO, said, “We are delighted to make our first investment in Saudi Arabia. This transaction underscores our commitment to investing in the market and the Saudi Vision 2030. Our strategy and unique relationships in Saudi Arabia and Oman provide us with a distinct advantage in sourcing and securing deal flow, and deploying capital in attractive infrastructure projects within the region.”

Tihama Power is the fifth asset in Rakiza’s portfolio, which includes a diverse range of investments in transportation (ports), network utilities, data infrastructure, and social infrastructure.

Oman Infrastructure Investment Management and Equitix established the Rakiza Fund to invest in public-private partnerships (PPP) and other core infrastructure projects in Oman and Saudi Arabia.

Rakiza seeks to capitalise on the drive towards privatisation and foreign direct investment (FDI) across the GCC region, where first-mover investors with access to opportunities can generally achieve higher returns while enhancing long-term impact.