Industries and global financial services firm Morgan Stanley are planning a joint venture with Orascom Construction Industries (OCI) that will invest in infrastructure in the Middle East and Africa.
p>Industries and global financial services firm Morgan Stanley are planning a joint venture with Orascom Construction Industries (OCI) that will invest in infrastructure in the Middle East and Africa.
Details of the 50/50 venture are so far limited. However, commentators have suggested that it will involve a fund and investments from third parties.
The appeal of the venture for the two parties seems clear enough: population growth through the Middle East and Africa has not always been matched by that of transport networks, sewage treatment, power generation and other necessities.
There is thus a strong and growing need for improved infrastructure, a need that is evidently seen as a possible opportunity by the two groups, especially given that many cash-strapped governments in the region might be happy to see the private sector invest in and manage major infrastructure development undertakings.
Among the sectors the venture is likely to be interested in considering for investment are power generation and gas distribution, water desalination and port construction. OCI is of course, already a major player in infrastructure development throughout the Middle East.
