A fund co-managed by Oman Infrastructure Investment Management (OIM) and infrastructure fund manager Equitix has raised more than US$1bn (€928m) to invest in public-private partnerships and other core infrastructure projects in Oman and Saudi Arabia.

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

The fund, which reached its US$1bn target at its close on 17 March, has already deployed 25% of its capital across three projects. The fund acquired a 30% stake in a telecom tower portfolio in Oman; took a 31% in Oman International Container Terminal; and a bought majority stake in Khazaen Fruit and Vegetable Central Market in Oman.

The fund also has a pipeline of opportunities as well as investments that are nearing financial close, the managers said.

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, co-founder and CEO of Equitix, 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.”

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