In a strategic move to strengthen economic relations between China and the Middle East, the China Investment Corp (CIC) has partnered with Investcorp, the region’s largest alternative asset manager, to establish a $1 billion fund for investments in companies across the Gulf Cooperation Council (GCC) region and China. This marks the first investment by CIC in the Middle East, signaling the growing economic ties between the two regions.
The Golden Horizon Fund, launched with Bahrain-based Investcorp, will invest in high-growth potential companies in sectors such as consumer, healthcare, logistics, and business services. It will also include Investcorp’s Saudi Pre-IPO Growth Fund, which focuses on pre-IPO companies in Saudi Arabia.
Qi Bin, executive vice-president and deputy chief investment officer of CIC, emphasized that the partnership will strengthen economic relationships between China and the GCC countries. He noted that CIC has been actively investing in both developed and emerging economies, and that the new fund builds on several bilateral funds established with leading financial institutions to facilitate industrial cooperation between China and other major economies.
CIC, established in 2007, manages a substantial portfolio of assets through its three units: CIC International, CIC Capital Corp, and Central Huijin Investment. Investcorp, known for its successful investments including ownership of brands like Gucci and Tiffany & Co., has expanded into the infrastructure space in recent years.
The launch of the Golden Horizon Fund was announced at Investcorp’s China-GCC Investment and Business Cooperation Summit in Riyadh. The event featured prominent speakers including Qi Bin and representatives from CIC’s global private-equity partners Goldman Sachs and HSBC, as well as industry experts. Fred Ma Si-hang, an adviser to Investcorp, and Nicholas Ho Lik-chi, the commissioner of the Hong Kong government’s Belt and Road Initiative Office, also attended the summit.
The new investment fund will be anchored by CIC and institutional and private investors from the GCC. The fund’s investments are expected to focus on GCC countries, with the intention of eventually bringing them to the mainland China market, showcasing a mutually beneficial arrangement. The fund is expected to generate impressive investment returns, following the success of previous bilateral funds that have generated returns of over 20%.
The establishment of the Golden Horizon Fund marks a significant step in strengthening economic ties between China and the Middle East. It demonstrates China’s growing engagement in the region and highlights the potential for further collaboration in various sectors.
