MANAMA: Due to booming demand in the infrastructure, agriculture and hospitality sectors, a new strategic alliance has been formed between Gulf Finance House (GFH), Ithmaar Bank and Abu Dhabi Investment House (ADIH) to create three visionary initiatives focused on driving market specific innovation across the Middle East, North Africa, south Asia (MENASA) region and beyond.
Addressing a press conference at the Ritz-Carlton Bahrain Hotel and Spa here yesterday, Khalid Abdulla-Janahi, chairman of Ithmaar Bank, announced the establishment of InfraCapital, AgriCapital and Hospitality Development Fund.
While InfraCapital will be the Gulf Cooperation Council’s (GCC’s) first investment bank, AgriCapital will be a new investment vehicle focused entirely on serving agricultural ventures. The Hospitality Development Fund will nurture and support opportunities across the global hospitality sector.
Janahi said the three Shariah-compliant initiatives represent a turning point in the systematic approach to specialist investments.
Giving reference of latest statistics, Janahi said the Middle East and North Africa (MENA) region accounted for one in every three dollars spent on worldwide infrastructure initiatives. Over the next decade the GCC alone will demand up to $545 billion of investment across the transport, power, water, energy, education and social infrastructure sectors.
“InfraCapital was conceived as a direct response to this demand which will have a proposed capital of $6 billion and target paid up capital of $1.5 billion and will focus on the provision of specialist services and tailored financial architecture for a wide variety of sub-sector infrastructure initiatives,” he said.
Esam Janahi, chairman of Gulf Finance House, said AgriCapital, with proposed authorized capital of $3 billion and target paid up capital of $1 billion, will channel expertise and specialist capital into five principle lines - food production, livestock, biomedicine, biofules and agricultural technology.
He said alongside these services and under the AgriCapital umbrella, a second investment company specializing in agricultural technologies, bio-technology and an investment bank specialized in agricultural investments will be created.
“The bank emanating from AgriCapital shall provide funding to every aspect of visionary agricultural projects, catalyzing advances in the field of agri-technology and exploiting opportunities arising from the current and future challenges in global production,” Esam Janahi said.
Rashad Janahi, board member and managing director of ADIH, said the Hospitality Development Fund will focus on two specific areas of investment and will call on alliance experience through ADIH’s expertise in the conception of entertainment cities, Ithmaar’s work on Delmonia and GFH’s strategic relations with Banyan Tree.
The fist asset class will concentrate on developing new hospitality-centric vehicles including hotels, transport solutions and apartment complexes while the second will capitalize existing hospitality companies who show tremendous potential for growth. The Hospitality Development Fund will be released in the next quarter with a size of $1 billion and an initial closing of $300 million.
“The role of foresight is central to the conception of credible products and services and the realization of shareholder value.
“This is especially true of the hospitality sector and given the combined experience of the alliance, we are well placed to spot emerging trends early and respond to them with innovative solutions,” Rashad Janahi said.
“With the launch of these new companies, we are confident that the region will have access to the resources and expertise necessary to continue its long-term growth and development. The creation of such entities is a clear manifestation of our commitment to the community and our desire to give back to the people, while at the same time, providing good returns to our shareholders,” Khalid Janahi said.
Esam Janahi said, “These initiatives chime with GFH’s vision of creating value and accelerating economic prosperity through innovative thinking. When we introduce innovative concepts and apply decades of industry experience to fast emerging economies, the potential to create enormous value and catalyze socioeconomic change is almost limitless.”
