Musharaka Capital, Alkhorayef Group sign deal to set up specialized infrastructure fund

Musharaka Capital and Alkhorayef Group signed an agreement to establish a specialized Water Infrastructure Investment Fund.

After obtaining the regulatory approval, the fund will invest in water infrastructure projects such as independent water plants, independent sewage treatment plants, and independent water transmission projects.

The fund was established as the Kingdom’s infrastructure projects, in line with the privatization program, are witnessing rapid developments in private sector participation and opening investments for local and international investors.

“This cooperation is a significant opportunity for local and international investors to invest in infrastructure projects in Saudi Arabia,” Musharaka Capital CEO Ibrahim Fahad Al-Assaf said.

“Investing in infrastructure provides stable, inflation-linked returns since infrastructure assets benefit from long-term concessions and exclusive advantages to guarantee excellent quality of services provided,” Al-Assaf added.

Alkhorayef Group CEO, Mohammed Abdullah Alkhorayef, said the agreement comes within the context of the direction of Saudi Arabia’s government in strengthening the role of the private sector through the establishment of high quality and efficient infrastructure that is the cornerstone to sustain water supply, growth and community development in all economic and social aspects.

“Investing in infrastructure is promising and beneficial to all stakeholders. The sound investment strategy with defined exit strategy, what drives investors’ appetite to such projects,” Alkhorayef added.

“Water is considered as one of pillars of the sustainable development goals of Kingdom's Vision 2030, to support economic growth and diversification in the Kingdom of Saudi Arabia in the long and short term,” he said.