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Maghreb Siyaha Fund mobilises $100 million

JEDDAH -- The first $100 million of the targeted $250 million for the Maghreb Siyaha Fund, has been raised, according to BMCE Capital , the investment banking subsidiary of BMCE Bank, the second largest private bank in Morocco.

It was explained during a roadshow in Riyadh recently that the fund offers an opportunity for leading Bahrain and Saudi Arabian-based institutions and individual investors to partner with leading Moroccan entities as a first step into successful investments in Morocco and the rest of the Maghreb region.

The fund is close-ended and upon closing will be endowed with $250 million in equity, enabling it to potentially accumulate more than $600 million asset base constructed from the over $300 million of current deal flow that are being negotiated for early closing. Primary targets for development are gated communities, with a 20 per cent allocation target from the final fund. However greenfield developments, apartment hotels, new hotels and secondary homes are each slated to receive between 15 per cent and 20 per cent of the fund. The first closing of the fund will be achieved in June 2007.

It was stressed that the Maghreb Siyaha Fund offers a variety of investment opportunities managed by multi-disciplined fund managers and experienced board of directors that have access to a huge network of deal flows, multifaceted expertise, financial products and off market transactions while conforming to international standards and transparent policies.

"The expansion and development of the Maghreb region has been tremendous in the past years, and the tourism and retail sectors are forecast to grow over six times by 2012, to reach over $20 billion in investments," Jaloul Ayed, chairman of the board, BMCE Capital and Maghreb Siyaha Fund, said.

"This potential attracted significant investments from outside the Maghreb, predominantly from GCC states and Europe, and initial inquiries indicate that a minimum of 25 per cent of the overall fund's capital will be raised from investors in the GCC region. Our roadshows aim to present this exclusive investment opportunity to a wider group of high net worth individuals and institutional investors looking for high rates of return in a rapidly developing region," he added.

"Balancing the allocation of funds will ensure that the investments drive social and economic growth, as well as create employment opportunities," explained Rachid Alami, general manager, Actif Invest, Maghreb Siyaha Fund.

"As the first fund to be fully dedicated to investing in a wide range of diversified yet complementary products in the tourism sector, we hope that it will act as a platform to attract investors taking their first step into successful investments in Morocco," he added.

The Moroccan government has also indicated a strong commitment to boost the tourism sector by recently signing an "Open Sky" agreement with Europe to boost tourist numbers, targeted for 10 million arrivals by 2010. With a current growth rate of 12 per cent, 6.5 million tourists visited Morocco in 2006. This growth is driving the injection of additional investment in the tourism sector from the government and both foreign and local private initiatives, BMCE is confident of strong rates of return for investors considering this sector.

Adel Douiri, minister of tourism, handicraft and social economy, said that Maghreb Siyaha Fund will play an important role in financing those innovative projects that are likely to re-shape the Moroccan tourism sector.

BY HABIB SHAIKH

© Khaleej Times 2007