Blackstone, the world’s largest buyout group with over $15 billion of equity globally with the energy industry has established Zarou, a company designed to develop, finance, construct and operate energy-related projects in the MENA region.
According to the Financial Times, Blackstone will team with Sameh Shenouda, former head of infrastructure equity investments at the UK’s development finance institution CDC Group, to tap into growing electricity demand in the MENA region by buying and developing renewable and thermal power generation.
“The projects’ enterprise value, a measure that includes net debt, could be in the billions of dollars, the people familiar with the venture said. “There is plenty of appetite.” Zarou will also invest in oil and gas assets and water infrastructure.”
Zarou will also target oil & gas midstream and water assets.
Blackstone’s entry into this segment adds to a growing number of non-state players involved in the renewable power sector — from development and installation to manufacturing.
In 2013 Blackstone created Fisterra Energy to invest in Latin America and Europe. Zarou’s MENA focus will include Egypt, Jordan and Morocco as well as other countries.