Al Rayan Investment, a subsidiary of Masraf Al Rayan (Al Rayan) has tied up with Gulf Bridge International (GBI) to launch a $445 million maritime communications project.

As per the agreement, Al Rayan will provide financial advisory and placement agency services to GBI for its sub-sea cable project, Gulf Bridge International Cable System (GBICS).

The GBICS will be geographically the widest of its kind in the region to serve the countries bordering the Gulf as well as the north-east African countries connected with the rest of the world through Italy in the west and India in the east, thus bridging the three continents together, said an Al Rayan official.

Knowledge Ventures (KV), which focuses on communications and information technology investments and is a wholly owned subsidiary of Qatar Foundation, is an anchor shareholder.

The other key committed institutions include the Qatar Investment Authority in addition to other major gulf players.

'Knowledge Ventures is keen to support investments of high quality and added value to the region and create enhanced investment opportunities for economic and knowledge benefits to our partners in the region', said Rashed Al-Noaimi chairman of KV.

'There is no doubt that the need for modern technology infrastructure is a must in light of the increasing reliance of public and private sector on broadband communication services,' he pointed out.

'The vacuum that exists in the options available to the GCC countries of multiple reliable high capacity international cables creates an excellent investment opportunity that makes financial and technical sense,' he added.

Private placement for GBI starts this week. Masraf Al Rayan has been appointed as the escrow agent besides being a placement agent along with Al Rayan Investment, which is also acting as the financial advisor to GBI.

Adel Mustafawi, CEO of Masraf Al Rayan, stated: 'We are very proud of our partnership with Gulf Bridge International in this leading project, which is considered a significant development in the communication sector.'

'GBI Cable System will enhance the development of current infrastructure projects and support the continuous growth of the region’s economy,' he observed.

'In addition, it will position the Gulf region in an advanced position in the field of Communications and Information Technology Services,' Mustafawi said.

'Furthermore, this important strategic initiative is considered a unique investment opportunity which has received strong financial support, as we saw broad interest in the project by investors in the Gulf countries and beyond,' he added.

GBI relies on the independence as a system to push for the liberalization of telecommunications markets in the region and to boost competitiveness in services and prices, said Hamad Al Mannai, deputy executive chairman.

According to him Gulf region is ranked second in the world in the rate of increasing demand and growth of international telecommunications services and internet.

'The sector is currently expanding, witnessing the issuance of operating licenses for the second and third mobile phone and fixed telecom companies. The growth of investment in building networks of telecom operators is always accompanied by the increasing demand of international communications,' he opined.

He pointed out that the current shortfall in this sector was due to the absence of a vision that the cables were strategic assets to serve the countries of the region, and of investment in building high quality maritime network to avoid the corruption of cables and its effects on disrupting communications and internet services.

'Gulf Bridge network will help bridge the current gap in the market and will address the increasing current and future communication demand,' he added.