The International Finance Corporation (IFC), a member of the World Bank Group, is investing $20 million in the Intaj Capital II fund targeting the Middle East, North Africa and Turkey, according to a press statement.
The $300 million fund will invest in businesses from a range of sectors, helping them expand locally and regionally to create employment opportunities, the IFC said.
The fund is seeking to acquire stakes in 12 to 15 medium to large companies operating in sectors driven by growth in consumer demand including consumer goods, retail, communications, construction materials and consumer financial services.
The Intaj Capital II fund is sponsored by Swicorp KSA, a Saudi company that provides financial advisory services in the Middle East and North Africa region.
Dimitris Tsitsiragos, IFC Director Middle East, North Africa, and Southern Europe, said, “With these investments we aim to act as a catalyst by demonstrating that the growth of funds in emerging markets can play a significant role in developing private sector companies.”
Businesses receiving investment from the fund will also benefit from support to help them implement better corporate governance, and to raise their environmental and social performance and improve their long-term, sustainable development prospects, the statement read.
In fiscal year 2010, IFC committed more than $860 million to financial markets in MENA.
