Rakiza acquires stake in Oman Intl Container Terminal

New thrust: OIA-backed infrastructure fund picks up 31% stake in Hutchison Ports Sohar container terminal at Sohar Port

Underscoring its support for the country’s core infrastructure sector, Oman Investment Fund (Rakiza) — set up under the auspices of Oman Investment Authority (OIA) — has signed agreements to acquire a stake of over 31 per cent in Oman International Container Terminal (presently known as Hutchison Ports Sohar) at Sohar Port.

Hutchison Ports Sohar — a joint venture of leading global port operator Hutchison Ports Holdings (HPH), the Omani government, and a number of prominent Omani and international investors — operates the container terminal at Sohar Port on a long-term concession.

The deep-water terminal, which can handle mega container vessels, is the country’s principal gateway for containerised imports and exports. The stake acquisition represents one of Rakiza’s first major investments in the Sultanate of Oman’s strategic infrastructure sector.

Target segments for investments also include greenfield and brownfield opportunities including renewable energy, power and water, social infrastructure, telecommunications, oil and gas, transport and logistics, and environmental projects – both within and outside the Sultanate of Oman.

In a statement published on its website, Rakiza CEO Muneer al Muneeri stated: “We are very pleased to be announcing our investment into OICT. Rakiza is well placed to invest in the port, supporting trade and helping to generate growth in the country and the wider region. The Sultanate of Oman’s public policy support for privatisation and the country’s robust and transparent regulatory regime is key to Rakiza’s investment thesis and it will contribute to capital market growth, FDI, privatisation, ESG (Environmental, Social, Governance), improved governance, better investor valuations.”

Rakiza is co-managed by Oman Infrastructure Investment Management (OIM), a specialist infrastructure manager wholly owned by Oman Investment Authority (OIA), and Equitix, a leading investor, developer and fund manager of core infrastructure assets in key international markets.

London-based Equitix currently manages over $10 billion worth of assets on behalf of long-term investors.

Hugh Crossley, Equitix Co-Founder and CEO, added: “Rakiza’s unparalleled access to infrastructure projects in the Sultanate of Oman, combined with Equitix’s strong track record, investment process and significant resources dedicated to infrastructure investment, give Rakiza a decisive edge in achieving returns for our investors.”

Significantly Rakiza’s stake acquisition in Hutchison Ports Sohar will impart strong new impetus to the latter’s plans to expand container handling capacity at Sohar Port in the next phase of its growth.

In 2021, Hutchison Ports Sohar recorded an increase of 200 per cent in domestic movements compared to 2020 while the export full volume recorded a year-on-year growth of 9 per cent.

Over the 15 years of its operations, the terminal has handled a total of around 6 million TEUs of containers.

Capital investments in a number of core infrastructure projects in the region are also at various stages of diligence and discussion, according to Rakiza. “Rakiza Fund’s strategy is to capitalise on the drive towards privatisation and Foreign Direct Investment (FDI) across the region, where first mover investors, are generally able to achieve higher returns,” it added.