Hong Kong-based private equity firm Templewater is teaming up with countries in the Middle East to unlock investment opportunities arising from the region’s energy transition programmes, while delivering returns for its investors.
It is working with the Future Fund Oman, a 2 billion Omani rial (US$5.2 billion) investment fund established by the sultanate’s sovereign wealth fund, Oman Investment Authority (OIA), to “focus on energy transition and localisation opportunities”, according to Yufeng Wan, partner and head of decarbonisation investment at Templewater.
“These efforts will create enterprise and economic values and contribute to the region’s net-zero emission and economic diversification ambitions,” he said.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
The fund seeks to unlock the potential of tourism, industry and manufacturing, green energy, information and communication technology, ports and logistics, mining, fisheries and agriculture, according to its website.
Wisdom Motor, a zero-emission commercial vehicle manufacturer majority-owned by Templewater, aims to build a presence in manufacturing, servicing and sales distribution in six countries that make up the Gulf Cooperation Council (GCC).
It signed a preliminary agreement in March with the OIA, which manages US$50 billion of assets, setting the stage for investment and collaboration in green transport. It had earlier agreed to offer customised hydrogen-powered vehicles in the United Arab Emirates.
“We see a lot of complementary elements between Wisdom Motor and the GCC countries,” chief strategy officer Felix Xu said. “We strive to become the leader in providing zero-emission commercial vehicle solutions which fits perfectly” with the region’s decarbonisation strategy and agenda, he added.
Wisdom Motor is a zero-emission commercial vehicle manufacturer majority-owned by Templewater. Photo: Aileen Chuang alt=Wisdom Motor is a zero-emission commercial vehicle manufacturer majority-owned by Templewater. Photo: Aileen Chuang>
Oman and the UAE are part of the GCC, which is forecast to grow its gross domestic product to US$6 trillion in 2050 from 2023, according to the World Bank. The size could reach US$13 trillion when incorporating the benefits of green initiatives, it projected.
Templewater manages US$1.5 billion of assets. The firm was co-founded by ex-banker Cliff Zhang and wealth manager Investec Group of South Africa in 2018. It owns 30 per cent of Bravo Transport, the operator of Kong Kong’s Citybus. It aims to raise US$300 million for its first decarbonisation fund.
