PIF-backed Rakiza buys 39% of Omani broadband developer

Oman Infrastructure Fund, known as Rakiza, has acquired a 39 percent stake in Oman Broadband Company, the government arm developing broadband infrastructure in the sultanate.

Rakiza, backed by Saudi Arabia’s Public Investment Fund, bought the stake from ITHCA Group, a Muscat-based venture capital firm. The price was not disclosed.

The investment is Rakiza’s fourth acquisition in Omani infrastructure sectors, the state-run Oman News Agency reported, citing CEO Muneer Ali Al Muneeri. 

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“Continuous improvements and upgrading are going to remain essential to make the sultanate an attractive destination for foreign investments,” said Sultan Ahmed Al Wahibi, CEO of Oman Broadband Company.

Rakiza closed its first fund in March, raising more than $1 billion from participants.

The fund has already spent a quarter of this money buying three Omani assets – a 30 percent stake in a telecom tower portfolio, 31 percent of a Port Sohar container terminal and a majority holding in a new fruit and vegetable market.

In August PIF invested $300 million in Rakiza, which is co-managed by Oman Infrastructure Investment Management and London-based Equitix.

Saudi Crown Prince Mohammed Bin Salman said in October that PIF would launch five companies to invest in Bahrain, Iraq, Jordan, Oman and Sudan.

Together with PIF’s Egyptian subsidiary, these six companies will invest up to $24 billion in total.