Arcapita’s CEO: We Have Successfully Executed 100 Investment Transactions with a Total Value of $31 Billion

Atif Abdulmalik, Chief Executive Officer of Arcapita Group Holdings (Arcapita), a Sharia compliant global alternative investment firm, has set out Arcapita’s strategic transformation plan for the coming five years. The strategy aims to increase the size and volume of Arcapita’s transactions in the private equity and real estate sectors by introducing new product offerings. This new phase of expansion builds on Arcapita’s track record of 100 transactions with a total value of US$31 billion over the past 25 years.

Abdulmalik explains that Arcapita’s business activity is a mix of direct private equity investments and investments in real estate with a particular emphasis on industrial properties in the Company’s core markets of the Gulf Cooperation Council (GCC), mainly in Saudi Arabia and the United Arab Emirates, and the US. Through its transformation strategy, Arcapita intends to diversify its asset base further and minimize risk exposure by acquiring real estate and private equity assets in sectors that demonstrate solid long-term fundamentals.

Abdulmalik added that Arcapita is expanding its logistics activities in the Kingdom of Saudi Arabia by creating a logistics-focused real estate fund with investments of up to US$1 billion. Combined with other funds in Saudi Arabia and the UAE, this will bring the Company’s total investments in the industrial sector to US$1.6 billion.

These investments reflect growing demand among foreign and institutional investors for attractive investments in the Saudi market, with much opportunity for growth being driven by Vision 2030 and changing investment approaches by a new generation of investors.

Arcapita has been investing for the past 25 years. What are your plans for the Company’s next phase?

Over the past 25 years, Arcapita has completed 100 investments with a total value of US$31 billion. For our next phase, we have adopted a five-year transformation plan based around making further quality investments in promising markets, increasing the size of our transactions in private equity and real estate, and introducing new product offerings. We are also looking to consolidate our presence in important strategic markets, including opening our offices in Riyadh in April. This new office is an important milestone in furthering our business in the region and will help us capitalize on the opportunities generated by Saudi Vision 2030.

What are the goals of Arcapita’s strategic transformation plan?

Arcapita’s investment strategy focuses on private equity and real estate and with the transformation plan we will increase our activities in both sectors. In terms of real estate, Arcapita intends to diversify its asset base and minimize risk exposure by targeting assets in defensive real estate sectors with strong long-term fundamentals such as the industrial sector and the long-term residential rentals market. In private equity, we look to acquire asset-light technology-enabled companies that have the potential to growth organically and through bolt-on acquisitions.

In addition, Arcapita supports socially responsible investments with select product and service offerings, including deal by deal investments, investment funds and managed accounts. Arcapita also aligns its interests with the interests of its investors by seeking to co-invest a 5% to 10% stake in each investment opportunity.

What are Arcapita’s main investment segments in the private equity sector?

Private equity investments have been a mainstay of Arcapita’s investment strategy over the past two decades. In this space we largely focus on acquisitions in the business services, logistics, and consumer segments, each of which has its own characteristics, growth potential, and return profile.

The outsourced business services sector has considerable growth potential and Arcapita is acquiring companies in areas such as waste management and property valuation. For example, we recently acquired Nationwide, which provides valuation services to large mortgage institutions throughout the United States. Logistics companies and consumer services are also benefiting from the growth of e-commerce, last mile delivery services, and tech-enabled retail; trends which were accelerated by the COVID-19 pandemic.

What about Arcapita’s real estate investments?

Arcapita’s real estate investment strategy focuses on the industrial, multifamily, and student housing sectors.

In the industrial space, we focus on properties that are either leased to a single long-term tenant, or leased to a variety of smaller tenants on shorter term leases. The sector has proven resilient and has historically maintained high occupancy rates during recessionary periods given the vital importance of storage and distribution facilities in supply chains. This was clearly demonstrated during the COVID-19 pandemic as the demand for industrial space was boosted by e-commerce activity. In general, the industrial sector outperformed the office, retail, and hospitality sectors during the pandemic.

Within the multifamily sector, Arcapita strategically invests in markets with strong employment and population growth rates, and concentrates on Class B properties with a selection of Class A properties.

In student housing, we seek properties serving large US public universities with over 10,000 students and located relatively close to campus. Arcapita recently exited the University of Tennessee’s Quarry Trail student housing property after maintaining an occupancy rate of almost 100% despite challenges presented by the pandemic and growing net operating income by approximately 24% over a two year holding period.

Does this expansion in global markets support Sharia compliant products?

As you know, Arcapita has been committed since its inception in 1997 to providing Sharia compliant investment services and products. The key values and ethical standards we have adopted are reflected in all our transactions and activities to date, and that will not change.

We opened our first international office in Atlanta, Georgia in 1998, when Arcapita was the first Sharia compliant private equity investment firm in the United States. Since then, we have witnessed growing global demand for Sharia compliant products, particularly in key international markets where we are now focusing our expansion plans.

Reports show increasing growth in many sectors in the US market. What is the size of Arcapita’s private equity investments in the United States?

Arcapita has invested more than US$17 billion in US private equity and $13 billion in US real estate over the past 25 years, including in some landmark transactions.

For example, one success story was our relationship with Caribou Coffee, the global coffee chain. After acquiring and growing the business, Arcapita took the company public, making it the first Sharia compliant listing on a US exchange. We also partnered with Prologis, a leader in US logistics real estate, and jointly acquired approximately 80 industrial real estate properties across the country and successfully exited that investment in 2006.

We have built a track record of investing in business services companies, and currently have a substantial controlling interest in a number of asset-light US companies. One such example is Nationwide Property and Appraisal Service, the second largest independent appraisal management company in the US, which serves mortgage lending institutions across all 50 states. Nationwide is a market leader with a network of over 15,000 licensed appraisers, with its clients including more than 100 blue-chip lenders and 21 of the top 25 wholesale lenders in the US. This investment is a continuation of Arcapita’s US private equity strategy focused on asset-light, tech-enabled business services companies.

The United Nations’ special envoy to Sudan, Ramtane Lamamra, has issued a stark warning about the continued flow of weapons into the war-torn country, saying it only “feeds military delusions” and delays peace.

In his first in-depth interview since assuming the role earlier this year, Lamamra told Asharq Al-Awsat that peace in Sudan cannot be imposed from outside but must be forged by Sudanese themselves through collective will and unity.

“Peace is not imposed, it is made,” he said. “And if Sudanese do not make it, it will not come to them from the outside.”

Lamamra, an Algerian diplomat and former foreign minister with decades of experience in African mediation, emphasized that no military solution is possible in Sudan’s conflict. Instead, he called for an urgent political settlement, warning that “each day of delay means more fragmentation, more bloodshed.”

Following meetings in Port Sudan with Sovereign Council leader Gen. Abdel Fattah al-Burhan and ongoing communications with the leadership of the Rapid Support Forces (RSF), Lamamra acknowledged that the path to peace remains long and difficult.

He condemned what he described as a dangerous “logic of dominance” driving the conflict—a belief that complete military victory is possible, regardless of the cost to Sudan’s social fabric. “Some actors still think peace can wait until one side wins,” he said. “But that’s a delusion. There is no military solution.”

Instead, he stressed: “Sudan needs a political solution based on compromise, not revenge.”

Since taking office, Lamamra has focused on coordinating rather than expanding international mediation efforts. He voiced concern about the “overcrowding of mediators,” which he said has allowed Sudanese factions to exploit international divisions.

To address this, Lamamra launched a consultative group that includes the African Union, the Arab League, and peace-sponsoring countries. The group has met in Cairo, Djibouti, and Mauritania and plans to convene again in Brussels under EU sponsorship.

“What we need is not more mediators, but consensus around a unified vision,” he said. “Multiple tracks have allowed some parties to bet on contradictory international positions, delaying serious efforts toward peace.”

He pointed to UN Security Council Resolution 2724, which tasked him with coordinating peace efforts, emphasizing that its implementation hinges on aligning international efforts behind a single, realistic peace strategy.

Asked whether Sudan’s war has faded from global attention, Lamamra acknowledged that media coverage may fluctuate but said the humanitarian catastrophe continues to deepen.

“The suffering is daily and ongoing,” he said, highlighting the dire conditions in North Darfur and the rapidly deteriorating situation in Zamzam camp. “The tragedy breaks the heart.”

With over 13 million internally displaced and millions more seeking refuge abroad, Lamamra described Sudan as the site of the world’s largest humanitarian crisis today. “This is a country under siege by arms, division, and international silence,” he said.

He praised the special attention paid by UN Secretary-General Antonio Guterres, who has longstanding ties to Sudan dating back to his leadership of the UN refugee agency.

Lamamra was especially vocal about the dangerous role of foreign military support. “Feeding the war with weapons is not support for resolution—it is participation in prolonging delusion and division,” he said.

He accused some regional and international actors of backing Sudanese factions in hopes of future influence. “They forget that war leaves nothing intact to control,” he noted. “It’s in no one’s interest to see Sudan collapse.”

The envoy reiterated the UN’s calls for a total halt to arms shipments and strict enforcement of Security Council resolutions aimed at cutting off military funding.

Despite international interference, Lamamra emphasized that the ultimate responsibility for ending the war lies with Sudanese themselves. “History will judge them first and foremost,” he underlined.

Lamamra said the Jeddah Declaration—an agreement brokered by Saudi Arabia to ensure humanitarian access and civilian protection—remains a viable starting point for peace efforts. He commended Riyadh’s efforts and urged regional actors to intensify pressure on warring factions.

He also pointed to the upcoming Arab League summit in Baghdad as a potential turning point. “Sudan is central to the Arab identity. This is not a crisis that allows for neutrality,” he said.

In a direct message to the Sudanese public, Lamamra expressed admiration for their resilience. “I visited Port Sudan recently and met with leaders and citizens. I was moved by their hospitality and strong will to take charge of their future,” he said.

He pledged the UN’s continued support, acknowledging the scale of the humanitarian challenge: “Children, women, and innocent civilians are being stripped of life’s basic necessities. This crisis demands a moral awakening—not just from governments, but from everyone who hears and sees.”

Lamamra concluded: “Peace is not a one-time event—it’s a long-term project. And if we don’t begin now, there may be nothing left to build on in a few months.”

Arcapita’s CEO: We Have Successfully Executed 100 Investment Transactions with a Total Value of $31 Billion