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Saudi Arabia, UAE robust growth spurs private equity, real estate, infrastructure: Investcorp

Reported by Argaam
Feb 18, 2024· 2 min read
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Key Takeaways
  • • Investcorp Capital Chairman Mohammed Alardhi identified Saudi Arabia and UAE's robust economic growth as a primary catalyst for expansion opportunities across private equity, real estate, and infrastructure sectors.
  • • Investcorp currently maintains most assets in US and European markets but plans to significantly accelerate investment allocation to the GCC region, alongside emerging exposure in India, China, and broader Asia.
  • • The firm has set an ambitious strategic goal to double assets under management to $100 billion, requiring not only geographic and sectoral expansion but also operational upscaling to enhance shareholder and investor returns.
  • • Investcorp's Real Assets division currently oversees $16+ billion in AUM, with focus on global real estate and infrastructure investments, positioning the firm to capture infrastructure opportunities emerging from regional economic acceleration.
Summary
Investcorp Capital PLC is positioning itself to capitalize on accelerating economic growth in Saudi Arabia and the UAE, according to Chairman Mohammed Alardhi. Speaking to Asharq Business, Alardhi emphasized that the robust expansion across both markets presents substantial opportunities for capital deployment in private equity, real estate, and infrastructure—three asset classes central to the firm's alternative investment mandate.

Currently, Investcorp maintains a portfolio weighted heavily toward North American and European markets. However, the firm has signaled a strategic reallocation, with GCC-region investments and assets expected to grow at an accelerated pace. Alardhi highlighted the region's particular strategic importance to Investcorp, noting the firm's commitment to directing capital flows to GCC opportunities. Beyond the Gulf, Investcorp is also building exposure in India, China, and other Asian markets, diversifying its geographic footprint across emerging and developed economies.

The firm has articulated an ambitious medium-term objective: doubling total assets under management to $100 billion. Alardhi characterized this goal as "challenging," noting that achieving it requires more than geographic expansion. The strategy encompasses operational upscaling designed to deliver improved risk-adjusted returns and enhanced value for both shareholders and asset owners. Investcorp's Real Assets division, which currently manages $16+ billion in global real estate and infrastructure investments, will likely serve as a key vehicle for capturing growth opportunities in the Saudi and UAE markets, where infrastructure development and real estate modernization remain priorities aligned with national economic diversification initiatives.

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Sources

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Argaam Saudi Arabia, UAE robust growth spurs private equity, real estate, infrastructure: Investcorp