London-based Gemcorp Capital has announced it is partnering with Saudi Arabia’s Ministry of Investment to launch a first-of-its-kind investment fund, with an initial target of US$1bn. 

The fund aims to provide opportunities for investors to back a range of credit and equity products across the country. Credit products include structured trade finance and convertible debt, while equity products cover common and preferred equity as well as other derivatives and hybrids. 

Gemcorp says it is committing seed funding, while the Ministry of Investment will help establish the fund and facilitate access to investment opportunities. Priority sectors include energy, infrastructure, and minerals and mining. 

“Saudi Arabia is a key focus market, offering a favourable investment environment and unique opportunities to develop innovative financial solutions for public and private stakeholders in [those] three priority sectors,” says Gemcorp founder and chief executive Atanas Bostandjiev. 

“Our aspiration is to make this fund the first of a series of follow-on funds in the kingdom.” 

Saudi Arabia’s deputy investment minister, Salah Ali Khabti, adds that foreign direct investment has been a “transformative force” to the country’s local economy, and expects similar initiatives to emerge in the future. 

“Gemcorp’s US$1bn fund will be a pivotal catalyst for our economic growth, poised to invigorate our key priority sectors,” he says. “We believe this landmark fund launch will set the stage for others to follow, ushering in a new era of prosperity and innovation for our region.” 

Gemcorp says investments will align with Saudi Arabia’s Vision 2030 strategy, as well as its broader economic development initiatives. 

It adds that increasing financing for renewable energy, further developing production of aluminium, copper, gold and phosphate, and improving infrastructure development, are currently key investment trends in the country.