HSBC Saudi Arabia has appointed Bahrain-based Arcapita as an advisor to its $150m logistics fund. Arcapita will be expected to help HSBC identify assets as well as providing asset management and fund administration services for a fund targeting warehouses and other logistics assets in Saudi Arabia and the UAE.
The GCC’s logistics sector has become popular with investors that see an attractive cash yield in today’s low yield environment and “a thriving market with a solid long-term investment outlook”, according to Arcapita’s chief executive Atif A Abdulmalik.
In addition to the GCC countries’ status as international trading hubs and a gateway to Africa, Saudi Arabia’s logistics sector is set to grow further as a result of Saudi Vision 2030, the government’s infrastructure initiative which will increase spending on air and sea port infrastructure.
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