Monday, Feb 11, 2019 | Jamadi Al Thani 6, 1440
Arcapita net income grows 50% in 2018
Bahrain-based Shari’ah compliant alternative investment firm Arcapita grew its
net income by approximately 50 percent year-on-year in the 2018 fiscal year to
over $12 million, according to CEO Atif Ahmed Abdulmalik.
In an interview with Arabian Business,
Abdulmalik said that during the 2018 fiscal year, the firm sourced four
transactions with a total value of approximately $400 million.
“Fundraising activity in the Gulf remained strong at $230 million as we
significantly grew our investor network through developing new relationships
with prominent high net worth clients, family offices and institutional
investors,” he said.
Looking to the future, he added that Arcapita recently completed a $100 million
equity-fund raising round to accelerate its investment activity and to help
establish a presence in new markets.
“Over the short and medium term, our main focus will be to expand our real
estate portfolio in the US and regionally, and to continue to drive growth
across our portfolio companies to execute on our growth plan and generate
attractive returns for our stakeholders,” he said.
While Abdulmalik said that Arcapita expects the global economy to perform well
in 2019 and grow by between 3 and 4 percent, he also noted that investors may
turn your attention to less traditional markets.
“Strong job and consumption growth across the US and other advanced economies
should fuel economic and investment activity,” he said.
“However, increased trade protectionism, tightening fiscal policies and
political tensions might impact investors’ appetite for traditional markets such
as the US and UK, and investors might seek opportunities in less favoured
markets such as Southeast Asia and Eastern Europe.”
According to Arcapita, the firm expects to close an additional 3 to 4
transactions in 2019, with a total transaction value of between $300 and $400
At the moment, Abdulmalik added, the firm is focused on responding to a number
of macro trends that it believes will provide significant investment
opportunities going forward, among them increasing health awareness, a
digitising economy, and changing demographics.
“The global senior population is expected to double within the next three
decades. In the US, the senior population is the country’s fastest growing
demographic and by 2056 this age group is expected to be larger than those under
the age of 18,” he said.
Abdulmalik added that, coupled with an ageing population, the proportion of
Muslims globally continues to grow, with Muslims expected to account for a third
of the world’s population by 2050.
“This is generating demand for Shari’ah compliant goods and services and has led
to a rapid growth within the Islamic economy,” he said.