Dubai-based private equity firm Fajr Capital is aggressively looking for high-value investment opportunities in sectors including healthcare, data centers, and semiconductors. In fact, the company’s CEO, Iqbal Khan, said that by 2030, they intend to double their assets under management to $7 billion as they expand into other emerging markets and increase their presence within the GCC region.
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Broad Investment Scope
Turkey will have sovereign investors from Abu Dhabi, Brunei, and Malaysia on its back to eye $1 billion in ports infrastructure by Fajr Capital. The deal is in line with global supply chain trends that are turning Turkey into a logistics hub, where it has already syndicated 35% of asset value. Technology infrastructures are what the company focuses on, and it will be putting up to $500 million in data centers across Turkey and the Gulf.
The company is well known for making investments in infrastructure. For example, in 2016, the company sold a 30.33% stake in Alexandria International Container Terminals. Fajr Capital also holds stakes in energy infrastructure assets such as Hajr Electricity Production Company in Saudi Arabia and Sohar Power Company in Oman.
Regional Focus and Sector Expansion
The region is its core market but, nowadays, Fajr Capital diversifies into education, facilities management, and real estate. It is working on a $500 million education deal and a $350 million facilities management investment. It is working on semiconductor investments in Saudi Arabia and also seeing opportunities in residential real estate in Makkah and Madinah, considering targeting Muslim investors worldwide.
It is planning to expand Aster DM Healthcare’s operations in Saudi Arabia through bolt-on acquisitions and has a pipeline of 13 deals under consideration. Fajr Capital led a $1 billion investment in Aster GCC earlier this year, partnering with other investors to take a 65% stake in the company. The firm also plans to dual-list Aster GCC in Saudi Arabia and the UAE within two years.
Rising Gulf Investments
The economic recovery and diversification drive in the Gulf region has seen private equity and venture investments go up, with Q3 2024 amounting to $2.28 billion. Fajr Capital’s deal-making strategy involves partnering with management to grow businesses, such as those it has invested in with Gems Education and Aster GCC.
Strategic Fundraising
Fajr Capital syndicates investors on a deal-by-deal basis. It has caught the attention of Chinese institutional and sovereign investors, especially for deals in the Gulf region. Chinese investors were very keen during the fundraising of its Aster deal, which points out their commitment to the Belt and Road initiative. In keeping strategic investments and partnerships, Fajr Capital will look to continue the leadership of private equity in the Gulf and beyond.
