Musharaka Capital and Al Khareef Group sign an agreement to establish the Infrastructure Fund
20 September 2020
Musharaka Financial Company and Al-Kharif Group have signed a cooperation agreement aimed at establishing a specialized investment fund in the water infrastructure sector.
Once approved by regulatory authorities, the fund will invest in water infrastructure projects, including independent water desalination plants, independent wastewater treatment plants, and independent water transmission lines. Water infrastructure projects in the Kingdom are undergoing rapid development as part of the privatization program, with increased private sector involvement and the opening of opportunities for both local and foreign investment.
In a statement about this partnership, Mr. Ibrahim bin Fahd Al-Asaf, CEO of Musharaka Financial, said: “This partnership represents one of the key partnerships that opens the door for both local and international investors to invest in the Kingdom’s infrastructure.” He added, “Investing in infrastructure offers stable and consistent revenues, as infrastructure assets benefit from exclusive rights to ensure the quality of services provided, and are distinguished by long-term purchase contracts.”
On his part, Eng. Mohammed bin Abdullah Al-Kharif, CEO of Al-Kharif Group, stated that this agreement aligns with the government’s direction under the leadership of the Custodian of the Two Holy Mosques to strengthen the private sector’s role in creating high-quality, efficient infrastructure, noting that this is essential for sustaining water supply and fostering growth and development in both economic and social aspects.
Al-Kharif emphasized that “investment in infrastructure is promising and brings benefits to all stakeholders. With the right investment strategy and clear exit strategy, this will stimulate investors’ appetite for such projects.”
He also pointed out that water is a key pillar of sustainable development and one of the most important components of Saudi Arabia’s Vision 2030, which aims to support both short- and long-term growth and economic diversification in the Kingdom.
Noteworthy, Musharaka Financial was established in 2013 and operates under the license of the Saudi Capital Market Authority (License No. 27-13169). It provides asset management, portfolio management, advisory services, and custodianship in the securities industry. The company is a leader in creating unique opportunities, having signed a first-of-its-kind agreement in May to offer digital asset services. It also manages several investment portfolios and funds.
Al-Kharif Group, established in 1957, is a leading national institution in the water and energy sectors in Saudi Arabia. It serves as a holding company for its subsidiaries in diverse sectors such as oil and gas, lubricants, water, energy, and machinery and equipment, operating in over 40 countries worldwide. The group has more than 60 years of experience, particularly in the water and energy sector, with over 30 years of experience in operations, maintenance, and water infrastructure works in the Kingdom. Through its subsidiary Al-Kharif Water and Energy Technology Company, it manages numerous projects for the Ministry of Environment, Water, and Agriculture and National Water Company, overseeing more than 48 ongoing projects successfully across the Kingdom.