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Equity Participation in Projects
Equity Participation in Projects is TAIC's main function, and investment decisions are based on sound economic and commercial viability criteria. Other criteria include the strategic importance of the project, its priority in the national development plan of the host country, its contribution to the integration of economic sectors, its contribution to the transfer of modern technology and the improved utilization of local resources.

The company acts as a catalyst and a promoter for investment by performing, inter alia, the following functions:

•    Identification of economically viable projects by conducting feasibility studies or evaluating such studies submitted by other parties.
•    Promotion of selected projects, subscribing in their capital and providing technical assistance during the initial stages to ensure timely and cost-effective implementation.
•    Participation in the management of on-going projects through representation on their Boards of Directors.
•    Follow-up of on-going projects in coordination with other parties to increase productive efficiency and competitiveness.

Equity Investment Criteria
First: General Criteria:
•    Strategic importance of the project and its priority within the development plan objectives of the hosting country.
•    The Project contribution to the integration of Arab economies and its capacity to achieve integration between economic sectors in the hosting country.
•    The project primary dependence on  local or Arab energies and resources.
•    Project capacity to generate a high added value for the development of the national economy.
•    Project contribution to the transfer of modern technology.
•    Environmental aspects of the project.

Second: Technical and Financial Criteria
•    Available financial and technical feasibility of the project with realistic assumptions of the hosting country’s prevailing conditions
•    Available subscription bulletins and data for IPOs and stocks traded in Arab capital markets.
•    Financial profitability ( IRR, ROE, dividend distribution policy, payback period, ….etc).
•    Funding availability according to specific time frame.
•    Proportional relation between financial resources and use.
•    Proportional relation between project profitability and risks.
•    Equity participation at a reasonable proportion that entitles TAIC membership in the project board (Not less than US$ 2 million or 5% of the capital whichever higher, and not more than 5% of TAIC’s shareholders equity).
•    Funding cost should not exceed 10% of the total investment cost during execution phase.
•    Availability of the infrastructure necessary for the project. Otherwise, its cost should not exceed 10% of the project’s total investment cost.
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