One of the largest asset management companies in the Middle East plans to invest in Saudi real estate over the next five years amid an expected real estate boom in the kingdom
Bahrain-based investor Investcorp Holdings, which manages more than $40 billion in assets, has already acquired a logistics warehouse in Dammam in the east of the kingdom and has identified potential deals worth another $100 million.
Saudi Arabia is seeking to attract foreign funds to its real estate and logistics sector as part of plans to become a regional business and trade hub. These ambitions are part of Crown Prince Mohammed bin Salman’s broader strategy to diversify Saudi Arabia’s economy away from oil revenues.
Investcorp, backed by Abu Dhabi-based Mubadala Investment Co. has already invested about $4 billion in warehouse and logistics facilities in countries such as the United States, Britain and India.
The company “really likes the logistics sector,” but it will consider all types of real estate in Saudi Arabia, said Babak Sultani, Investcorp’s head of private real estate. Any investments would be financed by Investcorp and then syndicated to clients, he said.
Investcorp was delisted from the Bahrain Stock Exchange in 2021 after nearly four decades, which it said would allow it to expand faster. Mubadala acquired a 20 percent stake in Investcorp in 2017, which previously backed companies such as Tiffany & Co. and Gucci Ltd.