Fajr Capital, an Islamic investment company part-financed by the Abu Dhabi Investment Council, has bought Dubai International Capital's (DIC) stake in a US$300 million (Dh1.1 billion) regional infrastructure fund.
The stake in the Mena (Middle East and North Africa) Infrastructure Fund gives the company exposure to ports projects in Alexandria and Dekheila in Egypt and power plants in Oman and Saudi Arabia.
It is the latest asset to be sold by DIC as it balances its portfolio after losses linked to the global financial crisis.
Fajrsaid the deal strengthened its position in the region.
"This investment combines several commercial advantages: high-quality infrastructure assets, a seasoned management team and the platform to launch further funds," said Adib AlZamil, Fajr's chairman.
"It also creates social value by connecting financial services to the real economy and by supporting a vital sector in the Mena region."
Focused on financial services and other strategic sectors in Muslim markets, Fajr is backed by the Abu Dhabi Investment Council, an investment arm of the Abu Dhabi Government.
Other partners include Khazanah Nasional of Malaysia, the government of Brunei, HSBC and the Al Subeaei Group, a private Saudi Arabian firm.
Fajr joins two other general partners and co-sponsors of the Mena Infrastructure Fund - HSBC and Waha Capital, the Abu Dhabi investment company.
The Mena Infrastructure Fund is invested in Alexandria International Container Terminals, which runs terminals in Egypt's two main commercial ports, Alexandria and Dekheila, in partnership with the international operator Hutchinson Port Holdings.
United Power, which operates a 270-megawatt power plant in Manah, Oman, is another investment by the fund. It also has a stake in a 3,927-megawatt power plant being built in Qurayyah, Saudi Arabia.
Through its subsidiary, Dubai International Capital Asset Management, DIC was a founding partner when the fund launched in 2007.
"This is another successful exit for DIC and follows a string of profitable exits of regional portfolio assets in recent months," said David Smoot, the chief executive of DIC, part of Dubai Holding.
In April, the firm said it had reached a final agreement with creditors on the restructuring of outstanding loans totalling $2.5bn.
The deal is Fajr's second investment this year. In February, it was among investors in Tamar Energy, a British company that harnesses renewable energy from organic waste.
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