Hussein H. Rifai

'Our selection criteria are clearly targeted,' explains Hussein H. Rifai, chief executive officer since April this year. 'We are in the telecoms, media and technology space, but only those companies that meet Islamic standards.

'That eliminates, for example, telecom companies with a large amount of debt, as we allow a maximum debt to capital ratio of 30%. We also cover 23 countries from Morocco to Iran, and can not have more than 25% of the fund invested in any one country.'

Despite these restrictions Injazat now has a portfolio of five investments and Mr. Rifai expects the venture capital fund to achieve its first exit within six to twelve months.

The fund was founded by the Islamic Corporation for the Development Sector, an affiliate of the Islamic Development Bank Group and Gulf Finance House in partnership with Dubai Islamic Bank, Saudi Economic Development Company and the Iran Foreign Investment Corporation.

'Our role as a venture capital fund is very different to a bank,' he says. 'We do not just provide money, although we do that as well. Our role is also in corporate governance to ensure that a company is properly managed and ready for sale. In addition, the presence of an institutional investor like Injazat will encourage the confidence of potential buyers.'

Mr. Rifai believes the Middle East telecoms, technology and media sector is ripe for consolidation into a few major players. This will provide the opportunity for venture capitalists to assist in the creation of larger entities and to profit from the trade sales of smaller companies to bigger concerns.

'We also see major international players moving into the Middle East and choosing to acquire local firms rather than build up a presence from scratch,' he says. 'It is a lower risk option for them and easier than trying to set up in an unknown market'.

With a long career in the IT and start-up consultancy business, Mr. Rifai offers considerable international experience. Jordanian-born he was educated at top universities California and spent 18 years working around the world, latterly with Ernst and Young in Australia and with his own consultancy advising on IT venture capital start ups.

'Injazat is an active and not a passive investor,' he adds. 'We help in developing company strategy as well as corporate governance, and the exit strategy is usually agreed before we invest. We expect to hold an investment for three to five years on average.'

At the Gitex computer show Injazat is giving entrepreneurs the chance to put their business plans to a panel of experts. 'This is more about helping them sort out their basic ideas and approach than finding new investment opportunities,' says Mr. Rifai. 'But we are always looking for new talent'.