Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, launched yesterday a $ 600 million Food & Agribusiness Fund as part of a strategic partnership with Robeco, a subsidiary of Dutch Rabobank.
This was announced by Farid Masood, director of asset management division of the ICD, who said the ICD Fund will address growing food security concerns by capitalizing on the region's largely under-exploited potential for increased food production and supply. To this end, it will promote strategic investment flows and expertise into the food and agricultural sector in Islamic countries.
Under ICD's sponsorship, the fund plans to raise the amount from governmental, multilateral and institutional investors in Islamic countries and beyond. The ICD Food & Agribusiness Fund will also make private equity investments in partnership with the private sector, generating a multiplier effect on the fund's capital. It will be operational once it has raised $ 350 million, anticipated by year-end.
Speaking on behalf of ICD, Khaled Al-Aboodi, its chief executive, said: "The fund is the first public-private partnership of this nature and size to address the inefficiencies and wastage facing the food and agricultural sector throughout our member countries. Boosting regional food production, supply and trade, the fund's investments will also lead to creation of jobs, transfer of technology, promotion of sustainable practices and poverty alleviation.”
ICD's launch of the fund comes at a time when investing in a wide range of strategic and commercially sustainable initiatives across the entire food & agriculture value chain has become a matter of crucial importance.
Abdullah El-Kuwaiz, a renowned economist, will act as chairman of the fund manager.
El-Kuwaiz commented: "The fund will promote value-added investments in inputs, technology, infrastructure, farming, logistics and trade whilst generating attractive returns for its investors.
The fund will be a catalyst for attracting foreign investment and private sector expertise to capitalize on the Islamic countries' untapped potential for producing more food for domestic markets, as well as exports, thereby promoting food security and economic growth on a regional basis."
ICD launches $ 600 million Food & Agribusiness Fund
