Bahrain’s GFH Spins Out Infrastructure Investments into Newly Established 'Infracorp'

General view of Bahrain World Trade Center in Manama, Bahrain (File photo: Reuters)
General view of Bahrain World Trade Center in Manama, Bahrain (File photo: Reuters)
TT
20

Bahrain’s GFH Spins Out Infrastructure Investments into Newly Established 'Infracorp'

General view of Bahrain World Trade Center in Manama, Bahrain (File photo: Reuters)
General view of Bahrain World Trade Center in Manama, Bahrain (File photo: Reuters)

Bahrain-based GFH Financial Group announced the spinning out of its infrastructure and real estate assets under the newly established “Infracorp” with a capital of $1 billion.

Infracorp will specialize in investments focusing on accelerating growth and development of sustainable infrastructure assets and environments across the Gulf and global markets.

A statement by the group, which Asharq Al-Awsat received a copy of, said the company will be managing a portfolio of near $3 billion of infrastructure assets including the land bank in the Gulf, North Africa, and South Asia of approximately 250 million square feet earmarked for sustainable economic and social infrastructure.

It focuses on investments in developing communities and investing in logistics and technologies that support sustainability and renewables as well as social infrastructure assets across the education and healthcare sectors.

CEO of GFH Hisham al-Rayes explained that the launch of Infracorp has been in response to the significant need and opportunity for private sector investment in the development of sustainable infrastructure as global economies transition to becoming more equitable and socially and environmentally conscious.

Rayes explained that unprecedented levels of capital are needed to both upgrade and develop sustainable foundations.

"Infracorp is well placed to put its capital, insight, and ethos into investments that support sustainable growth."

Launching the company also comes in response to the demand of regional and global investors for opportunities that deliver solid returns and provide for significant and measurable ESG impact.

Investment in sustainable infrastructure is inextricably linked with social and economic progress and Infracorp is focused on raising and deploying capital to help meet strategic development needs while enhancing economic wellbeing and returns for all stakeholders, according to Rayes.

"Furthermore, spinning out infrastructure assets from GFH will allow the Group to focus more on financial assets, while allowing Infracorp to manage and deliver returns from infrastructure and real estate assets which have a longer investment cycle than banking activities."

GFH believes the move will reflect positively on its results and the quality of its balance sheet.

"We will also look to list Infracorp on GCC exchange over the next 24 months and issue Green Sukuk, creating even greater value and providing a unique opportunity for investors.”



China’s Economy Set to Slow in Q2 as Pressure from US Tariffs Mounts

 A laborer works on the glass wall of a building near a luxury brand logo in Beijing, China, Friday, July 11, 2025. (AP)
A laborer works on the glass wall of a building near a luxury brand logo in Beijing, China, Friday, July 11, 2025. (AP)
TT
20

China’s Economy Set to Slow in Q2 as Pressure from US Tariffs Mounts

 A laborer works on the glass wall of a building near a luxury brand logo in Beijing, China, Friday, July 11, 2025. (AP)
A laborer works on the glass wall of a building near a luxury brand logo in Beijing, China, Friday, July 11, 2025. (AP)

China's economy is likely to have cooled in the second quarter after a solid start to the year, as trade tensions and a prolonged property downturn drag on demand, raising pressure on policymakers to roll out additional stimulus to underpin growth.

The world's No. 2 economy has so far avoided a sharp slowdown in part due to a fragile US-China trade truce and policy support, but markets are bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low.

Data due Tuesday is expected to show gross domestic product (GDP) grew 5.1% year-on-year in April-June, slowing from 5.4% in the first quarter, according to a Reuters poll. The projected pace would still exceed the 4.7% forecast in a Reuters poll in April and remains broadly in line with the official full-year target of around 5%.

"While growth has been resilient year-to-date, we still expect it to soften in the second half of the year, due to the payback of front-loaded exports, ongoing negative deflationary feedback loop, and the impact of tariffs on direct exports to the US and the global trade cycle," analysts at Morgan Stanley said in a note.

"The third-quarter growth could slow to 4.5% or lower, while Q4 faces unfavorable base effect, putting the annual growth target at risk," the analysts said. They expect Beijing to introduce a 0.5-1 trillion yuan ($69.7 billion-$139.5 billion) supplementary budget from late in the third quarter.

China's exports regained some momentum in June while imports rebounded, as factories rushed out shipments to capitalize on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline.

GDP data is due on Tuesday at 0200 GMT. Separate data on June activity is expected to show both industrial output and retail sales slowing.

On a quarterly basis, the economy is forecast to have expanded 0.9% in the second quarter, slowing from 1.2% in January-March, the poll showed.

China's 2025 GDP growth is forecast to cool to 4.6% - falling short of the official goal - from last year's 5.0% and ease even further to 4.2% in 2026, according to the poll.

BALANCING ACT

Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year.

Analysts polled by Reuters expect a 10-basis point cut in the seven-day reverse repo rate - the central bank's key policy rate - in the fourth quarter, along with a similar cut to the benchmark loan prime rate (LPR).

Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from US President Donald Trump's trade tariffs.

But China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years.

Expectations are growing that China could accelerate supply-side reforms to curb excess industrial capacity and find new ways to boost domestic demand.

It's a stiff challenge, analysts say, as Chinese leaders face a delicate balancing act in their quest to cut production while maintaining employment stability in the face of a worsening labor market outlook.