Oversubscribed Capital Increase Aims to Bolster Private Equity and Private Credit Opportunities in Saudi Arabia and the GCC
29 October 2024, Dubai — Gulf Islamic Investments (GII), a leading Shari’ah-compliant global alternative investment firm, has announced the successful closure of a $100 million capital increase. This influx of growth capital, which was significantly oversubscribed, provides renewed opportunities for investment in promising private equity (PE) and private credit projects across the Gulf Cooperation Council (GCC) region, further solidifying GII’s ambition to expand its footprint and enhance its strategic presence in the Kingdom of Saudi Arabia and beyond.
The $100 million capital raise comes ahead of the Financial Investment Initiative (FII8), scheduled to take place in Riyadh from October 29 to 31, 2024. The initiative is expected to provide a major platform for global investors and business leaders to engage in high-level discussions about opportunities and challenges in Saudi Arabia’s evolving investment landscape, underscoring the significance of the Kingdom as a hub for future investment.
The recent capital-raising effort saw participation from leading shareholders in GII, along with contributions from several new investors, including one of the largest Saudi institutions, the Al Nahdi family office, and the Sharjah Investment and Development Authority (Shurooq). This strong endorsement from established financial players further underscores the growing investor confidence in GII’s robust portfolio and strategic growth plans.
Expanding Horizons Across the GCC
With over $4.5 billion in assets under management (AUM), GII has established itself as a key player in the region’s alternative investment ecosystem, actively pursuing opportunities that create long-term value for investors. The new capital injection is poised to accelerate GII’s ongoing projects in sectors such as healthcare, logistics, food production, and education, with a special focus on the Kingdom of Saudi Arabia, which is rapidly transforming under its Vision 2030 initiative. This initiative seeks to diversify the Kingdom’s economy away from oil dependency by fostering growth in key sectors like tourism, healthcare, logistics, and entertainment.
GII has consistently demonstrated its commitment to tapping into high-growth sectors within the region. Notably, the firm has pursued key investments in strategic sectors, including its recent partnerships with Brookfield Asset Management to acquire a majority stake in GEMS Education, one of the UAE’s most prestigious education networks. Furthermore, GII divested from its UAE logistics network earlier this year, a move that highlighted the firm’s focus on optimizing its portfolio to capitalize on new and emerging growth areas.
In Saudi Arabia, GII has taken major steps in expanding its presence, particularly through investments in the healthcare sector. GII acquired a majority share in Al Meswak Dental Clinics, which is the largest network of dental and dermatology centers in Saudi Arabia. This investment positions GII strategically in one of the most crucial segments of the healthcare sector, catering to the growing demand for quality healthcare services in the Kingdom. Additionally, GII holds a significant stake in Abeer Medical Company, which operates numerous healthcare facilities in the Gulf.
The firm has also delved into the food production industry, which aligns with regional priorities regarding food security and sustainability. GII has launched the GreenCorp platform to support investments in food production and processing, with projects such as Badia Farms, a hydroponic agricultural enterprise, and Emad Bakeries in Jeddah, which focuses on bakery production. These ventures represent GII’s efforts to align its investment strategy with sustainability goals and contribute to food security in the region.
Beyond Saudi Arabia and the UAE, GII’s reach extends into India, where the firm runs two private equity funds focused on the dynamic and fast-growing Indian market. GII is evaluating additional opportunities in the Indian private equity space, highlighting its ambition to further diversify geographically and tap into new emerging markets.
Strengthening the Balance Sheet for Future Growth
The newly raised capital will enable GII to continue building on its current investments across multiple industries. Mohammed Alhassan, co-founder and co-CEO of GII Group, noted, “This additional capital raise strengthens our balance sheet further, on the back of GII’s existing investments in GCC healthcare, food production, and logistics ventures. The new growth capital will support projects in the Kingdom under Vision 2030, adding further foreign direct investment (FDI) and creating additional jobs for Saudi citizens, along with other GCC projects being developed currently.”
Pankaj Gupta, GII’s co-founder and co-CEO, emphasized the significance of the Financial Investment Initiative in Riyadh, stating, “FII provides an important opportunity to discuss our business partnerships and our commitment to investing in Saudi Arabia’s rapidly expanding economy, while bringing attractive returns and definitive benefits for our investors and shareholders. We also aim to discuss and develop new regional investment projects during the conference, which serves as a key platform for nurturing business relationships and exploring collaborative growth opportunities.”
Gupta also highlighted GII’s intention to expand further within the Arabian Gulf through acquisitions and co-investments with Saudi and other GCC investors. He stated, “Our growth strategy is anchored in forming long-term, meaningful partnerships that allow us to leverage synergies across sectors and regions, thereby contributing to the economic transformation envisioned by the region’s leadership.”
About Gulf Islamic Investments
Founded with the vision of providing Shari’ah-compliant alternative investments, Gulf Islamic Investments is a global leader in the alternative investment space. With over $4.5 billion in assets under management, GII aims to achieve superior, sustainable returns for its investors and shareholders by investing in well-curated growth and income-generating opportunities.
GII’s mission is underpinned by the philosophy of ‘innovation with a purpose,’ with an emphasis on building sustainable ecosystems that generate long-term value for all stakeholders involved. The firm actively invests in a diverse range of asset classes, including real estate, private equity, and private credit/debt, with a key focus on sectors poised for rapid growth and impact.
GII’s client network includes ultra-high-net-worth individuals (UHNWIs), family offices, banks, institutions, and sovereign wealth funds across the GCC and Asia. The firm’s UAE operations are regulated by prominent authorities, including the Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA), and the Financial Services Regulatory Authority (FSRA). In Saudi Arabia, GII operates as Gulf International Investment Company, regulated by the Kingdom’s Capital Market Authority.
A Strategic Path Forward
The $100 million capital increase marks a significant milestone in GII’s journey, reinforcing its role as a vital player in the regional private equity and investment landscape. With a clear focus on identifying and seizing high-potential opportunities across healthcare, education, food production, and logistics, GII aims to be at the forefront of driving economic transformation in the Arabian Gulf.
As GII prepares to engage with regional and global partners at the Financial Investment Initiative in Riyadh, the firm remains steadfast in its commitment to contributing to the economic development and diversification of the GCC. By forging strong partnerships and deploying capital in line with regional priorities, GII continues to position itself as a catalyst for sustainable growth, innovation, and value creation in the region.
For more information, visit www.gii.ae and www.gii.sa.
Media Contact
Stephen Harrison
Head of Corporate Communications, GII
communications@gii.ae