Siraj bets on Saudi-based telecom service provider

Saudi Arabia-based Siraj Capital has made an investment into Delta United Contracting Company, a telecom infrastructure service provider. Financial details of the deal were undisclosed.

Siraj Capital was unavailable for comment at press time.

Founded in 2006 and based in Saudi Arabia, Delta offers infrastructure and maintenance services to telecom operators and vendors across the country.

The investment will be used to grow the company in Saudi Arabia and the GCC region, Aziz Assi, co-founder and chief executive officer of Delta, said in a statement.

The liberalisation of Saudi Arabia’s telecom sector and the development of its economic and industrial cities have led to a significant increase in demand for infrastructure services in the sector, according to Maher Othman, a Siraj Capital vice president, in the statement.

The highly fragmented industry offers consolidation opportunities, which the firm and Delta intend to pursue, Othman added.

Saudi Arabia: telecom infrastructure services demand up

Saudi Arabia is currently building four economic cities, each in Rabigh, Hail, Madinah and Jazan, which cost more than $60 billion. By 2020, the cities aim to contribute more than $150 billion in gross domestic product annually, create more than a million jobs and house between 4 million to 5 million residents.

Founded in 2005, Siraj Capital is a sharia-compliant investment and finance company. It has three business divisions: private equity, business development and capital markets.

The firm’s private equity arm typically invests in small and medium enterprises across the Middle East North Africa region, with a focus on Saudi Arabia. It invests across all sectors and is particularly interested in the telecom, media, technology, consumer goods, food and beverage, real estate and healthcare sectors. The firm usually looks to exit its investments via a trade sale or a public listing within three to five years, according to its website.

Siraj Capital has 22 investment professional across offices in Jeddah, Riyadh and Dubai.