RIYADH: A SR1 billion ($266 million) investment fund aimed at financing digital, technical, and medical infrastructure equipment has received regulatory approval from the Capital Market Authority to operate in Saudi Arabia.
In a bourse filing, Kingdom’s Al-Moammar Information Systems announced it had been given notice from Al-Rajhi Capital that it had obtained approval to establish the new fund, which is compliant with Islamic law.
This comes after the signing of a memorandum of understanding between MIS and Al-Rajhi in August 2021 to establish the investment pot.
In its first stage, it will aim to generate income for investors by financing and leasing projects primarily in digital, technical, and medical infrastructure equipment.
MIS will be the sole marketer, supplier, executor, and operator of the fund’s projects, the bourse filing noted.
The fund will provide various financing methods such as long-term leasing, build-operate-transfer, pay-for-use, and partnership programs in the governmental, semi-governmental, and private sectors in the Kingdom.
MIS has been working closely with Saudi firms to facilitate growth in the Kingdom’s information technology sector.
In May, the company secured a new project with the Ministry of Municipal and Rural Affairs and Housing to renew and secure Microsoft licenses and programs, valued at SR83 million.
This came after the Public Investment Fund awarded a SR96.36 million contract in April to carry out the supply and integration of audio, visual, and smart solutions.
Meanwhile, MIS obtained two loans valued at SR758.83 million from Al-Rajhi Bank and the Saudi British Bank, also known as SABB, in March.
The IT firm renewed a SR500 million financing deal with Al-Rajhi Bank, valid until November 2023 and secured by a promissory note worth the total value.
MIS also extended a facility agreement worth SR258.83 million with SABB, valid until December 2023.
In October 2022, MIS signed a SR54 million contract with construction firm Absal Paul Co. for the implementation of the infrastructure technology development, supply, and installations of networks and data centers.
This came after it was awarded a SR58 million contract by NEOM for research collaboration and technology patenting projects.