CIC and Investcorp Form $1 Billion Fund to Boost China-GCC Industrial Ties
China's sovereign wealth fund, China Investment Corp (CIC), has formed a $1 billion investment partnership with Bahrain's Investcorp.
The fund, named Investcorp Golden Horizon, will invest in companies in Saudi Arabia, the Gulf Cooperation Council region, and China.
The target sectors are consumer, healthcare, logistics, and business services, with a focus on high growth potential companies.
Institutional and private investors from the Gulf and China will anchor the fund.
CIC has previously established similar funds to promote industrial cooperation between China and major economies.
CIC, one of the world's largest sovereign wealth funds, is working with Investcorp to create a bilateral fund between China and GCC countries.
This move comes as the GCC's appeal to institutional investors grows due to its stable regulatory environment and pro-business policies.
Investcorp's unparalleled franchise in the GCC and trusted global platform were key factors in CIC's decision.
Mohammed Al-Ardhi, executive chairman of Investcorp, expressed excitement about deepening the partnership between the two firms.
Co-CEO of Investcorp, Hazem Ben-Gacem announced the launch of a new fund to boost cross-border cooperation and investments between the Gulf Cooperation Council (GCC) and China.
Trade and economic ties between the Middle East and China have been robust, with China exporting $42.86 billion to Saudi Arabia and $55.68 billion to the UAE in 2023, while importing $64.36 billion from Saudi Arabia.
In November 2023, the central banks of Saudi Arabia and China signed a $6.93 billion local currency swap agreement to strengthen financial cooperation.
The central bank of an Asian country announced that an agreement between Saudi Arabia and China will enhance financial collaboration, encourage the usage of local currencies, and boost trade and investments between the two nations.