The Saudi Arabian Tourism Development Fund (TDF) and investment firm Derayah Financial have set up a SAR100 million ($26 million) closed-ended private equity fund to back small and medium-sized companies in the tourism sector.
This is the first tourism-focussed PE fund in the kingdom, which has been mostly closed to tourists except Muslim pilgrims performing the Hajj.
The establishment of the new fund comes just as the kingdom is opening its doors to tourists, albeit from select countries. The fund will target business opportunities in selective tourism areas across the kingdom.
Derayah Financial will manage the new fund as it possesses wide expertise in assets and funds management in both the kingdom and Gulf markets, according to a statement by Qusai Al-Fakhri, CEO of the TDF.
The fund is part of TDF’s efforts to promote tourism investment, Al-Fakhri added.
Rakiza, a fund managed jointly by the state-owned Oman Infrastructure Investment Management (OIIM) and infrastructure fund manager Equitix, is set to buy a stake in a container handling facility in the Gulf of Oman.
Rakiza is buying a stake in excess of 31% in Oman International Container Terminal, which is based out of the Port of Sohar, outside the Strait of Hormuz, for an undisclosed amount.
OIIM is a subsidiary of the country’s sovereign wealth fund, the Oman Investment Authority.
The investment is part of Rakzia’s plans to invest across core infrastructure projects in the Gulf nation.
“Rakiza is well placed to invest in the port, supporting trade and helping to generate growth in the country and the wider region,” said Muneer Al Muneeri, founder and chief executive officer of OIIM.
Rakiza says it seeks to invest in sectors such as oil and gas, renewable energy, energy from waste, regulated utilities, social infrastructure, telecommunications and transportation and logistics.