UAE-based investment Abraaj Group announced that its Palestine Growth Capital Fund (PGCF) has invested in Palestinian company Anoud Games, which produces Arabic educational games and toys for children.
The Palestine Investment Fund (PIF) is also co-investing in the deal through its SME platform, the Sharakat Program.
Neither the amount invested nor the size of the stake was disclosed.
Founded in 1996, Anoud Games is currently one of the largest makers and distributors of educational toys in Palestine.
“Abraaj will support Anoud in expanding its product range over the investment horizon and extending its geographic reach, allowing it to export its products regionally to serve the wider Arabic speaking audience,” said the statement.
Mohammad Mustafa, chairman and CEO of PIF, said: “Anoud Games represents Palestinian entrepreneurship and business resilience at their best. We are especially proud of this investment because the company is a Jerusalem-based Palestinian company.”
PGCF was set up in 2009 as a $50 million private equity investment vehicle to focus on the Palestinian SME sector and is part of Abraaj Capital’s $650 million SMC investment platform, Riyada Enterprise Development (RED).
PIF, Bank of Palestine, the European Investment Bank (EIB) and CISCO Company are the remaining partners in the fund.
The fund aims to provide growth capital to businesses in Palestine that are backed by high impact entrepreneurs, and seeks to invest in diverse sectors that present consolidation and transformation opportunities and export potential.
The fund achieved its first closure of $36 million in March 2012. This is the second investment for PGCF.