China’s Sovereign Wealth Fund Partners with Bahrain’s Investcorp to Establish $1 Billion Investment Fund
In a move signaling China’s increasing interest in the Middle East, the country’s sovereign wealth fund has joined forces with Bahrain’s Investcorp to create a $1 billion investment pot. The Investcorp Golden Horizon fund aims to support companies in Saudi Arabia, the wider Gulf Cooperation Council region, and China.
Anchored by Reputable Investors from GCC and China
The fund will be supported by institutional and private investors from the GCC, as well as China Investment Corp. Target companies are expected to demonstrate high growth potential in sectors such as consumer goods, healthcare, logistics, and business services.
Building Bilateral Funds for Financial and Industrial Cooperation
Bin Qi, executive vice president and chief information officer at CIC, highlighted the efforts to establish bilateral funds with leading financial institutions to foster industrial cooperation between China and major economies. A similar fund is now being developed in partnership with Investcorp to strengthen financial and industrial ties between China and GCC countries.
Strengthening Financial and Industrial Ties
The commitment from CIC comes at a time when the GCC is attracting institutional investors due to its stable regulatory environment and pro-business policies. This partnership underscores Investcorp’s reputation in the region and the trust placed in its global platform and teams.
Facilitating Cross-Border Cooperation and Investments
The launch of the new fund by Investcorp will facilitate cross-border cooperation and investments between the GCC and China. Trade and economic relationships between the two regions have always been robust, with significant exports and imports between them.
Strengthening Financial Cooperation
In November, Saudi Arabia’s central bank and the People’s Bank of China signed a local currency swap agreement worth $6.93 billion. This agreement aims to strengthen financial cooperation between the two countries, promote the use of local currencies, and enhance trade and investments between them.