Project equity investment is TAIC's
main function for which it was founded. In its endeavor
to consolidate and integrate the Arab economies, The
Company is keen to cooperate with local, regional
and international institutions undertaking project
promotion in the region. Such cooperation would focus
on performing, inter alia, the following roles:
Identification
of economically viable projects in various sectors,
and providing technical, financial and legal
assistance for their realization in addition
to taking equity in each project.
Participation
in project management to ensure adherence to
technical specifications, budgets, time schedules
through representation in these projects Boards
of Directors.
Development
of proper investment environment and elimination
of structural and legal obstacles that count
for low financial returns on investments in
some Arab countries
Project
equity investment criteria
TAIC equity investment decisions are
based on a number of criteria which include the following:
Total
investment cost of the project should not be
lower than US$ 10 million and should not exceed
US$ 300 million.
TAIC
capital share in any single project should not
be lower than US$ 1 million and should not exceed
US$ 20 million.
The
project infrastructure cost should not exceed
10% of the total investment cost.
The
internal return rate of the total investment
cost should not be lower than long-term credit
cost in US dollar or 10%, whichever is higher.
Internal
rate of return on capital after taxes should
not be lower than 12% or that of financing cost
plus a 4% margin, whichever is higher.
In addition to these, TAIC adopts a
number of specific criteria as follows:
The project
profitability and its capacity to generate a good
return on investment.
The project
strategic importance and its priority within the host
country development plan objectives.
The extent
of the project contribution in the integration of
various economic sectors.
The project
use of the local resources.
The project
role in technology transfer to the Arab world.
