The International Finance Corporation (IFC), a member of the World Bank Group, the Arab Fund for Economic and Social Development, the Arab Investment Company and The Arab Petroleum Investment Corporation have invested $125 million in the IFC Middle East and North Africa (MENA) Fund.
In a statement on Wednesday, IFC said "At a critical time for the economies of the region, this new fund will provide equity financing to private companies to help spur growth and development."
The Fund’s primary investment focus will be on growth opportunities in infrastructure, manufacturing and financial sectors, investing alongside IFC.
Through its investments in the financial and real sectors, it is expected that the fund will help increase employment opportunities in the region especially for the young.
The IFC MENA Fund will also help add value to its portfolio companies, particularly in areas such as corporate governance, risk management processes, and environmental and social standards.
"The Middle East and North Africa region is crucial to global prosperity and economic stability – the need for investment there has never been greater," said Jin-Yong Cai, IFC Executive Vice President and CEO.
Jin-Yong Cai added that "The investments in the IFC Middle East and North Africa Fund demonstrate improving investor confidence as well as greater investment opportunity."
"IFC is committed to investing in companies that grow and innovate, and the Fund will promote economic development while aiming to achieve strong returns for its investors." He noted.