Staff Writer, Dubai

Bahrain’s Al Salam Bank (ASBB) has partnered with China-based MSA Capital (MSA) to launch Al Salam-MSA Bahrain Fund I, a $50 million venture capital fund, it has been announced.

According to a statement, the fund will target investment opportunities that put innovative Chinese technologies and business models to work within the Middle East and North Africa (MENA) using Bahrain as a gateway into the region’s $1.5 trillion economy.

MEC Ventures will be the first privately funded venture to unify Chinese and Middle Eastern capital and technology markets, said the statement, adding that it is expected to be the first investment limited partnership to be established under Bahrain’s recently introduced Investment Limited Partnerships Law.

“Boasting over 400 million people with a common language, similar demand patterns and a high level of mobile penetration, the region is ripe with investment opportunities and technology-centric market white space,” the statement said.

The fund will spearhead capital and technology flow and cooperation between the two regions while capitalizing on best practices pioneered in the Chinese tech industry. Investments by MEC Ventures will cover multiple sectors, including ecommerce, fintech and the array of technology ecosystem enablers like big data, artificial intelligence, cloud computing as well as logistics and networking systems.

“Al Salam Bank-Bahrain is uniquely positioned to provide regional access to capital and investment opportunities in the ever-growing MENA market complementing MSA’s deep industry expertise,” Rafik Nayed, group CEO at Al Salam Bank-Bahrain, said.

Nayed said that Bahrain was a natural fit for this pioneering partnership having served as a commercial bridge linking East and West for thousands of years.

“MEC Ventures will be an active participant in the regional venture capital landscape which only stands to grow by leveraging on cutting edge China-based technologies and expertise,” he said.

Ben Harburg, managing partner at MSA Capital, said that the combination of high mobile penetration, high average revenue per user, and a large youth population, coupled with substantial market space, evidenced by factors such as low ecommerce penetration levels and large unbanked populations, offered an ideal opportunity for investment.

“We believe that the MENA region is nearing an inflection point that can be accelerated through the adoption of Chinese-inspired mobile-first business models,” said Harburg.

“We are proud to partner with Al Salam Bank-Bahrain to establish MEC Ventures, and see Bahrain as a hyper-efficient, user-friendly gateway to the MENA region, where we can collaborate with regulators, entrepreneurs, and strategic corporate partners to pilot new business models and serve as a hub for regional expansion.”