IHC–US development finance pact signals strategic capital push

Abu Dhabi-based conglomerate International Holding Company and the United States’ Development Finance Corporation have agreed to jointly deploy capital across emerging and frontier markets, marking one of the most ambitious investment alignments yet between a Gulf corporate heavyweight and Washington’s global development finance arm.

The agreement, announced by both parties, sets out a framework to invest at scale in sectors considered critical to economic resilience and geopolitical stability, including minerals essential to clean technologies, energy infrastructure, logistics networks, healthcare systems, food security and information and communication technology. The partners said the arrangement is designed not only to fund large projects but also to operate assets over the long term in strategically significant markets.

Under the pact, IHC and the DFC will combine capital, technical expertise and risk-sharing mechanisms to accelerate projects that might otherwise struggle to attract private financing. The DFC, established to advance US foreign policy and development objectives, brings political risk insurance, loan guarantees and co-investment capabilities. IHC contributes balance sheet strength, operational experience and access to capital pools in the Gulf and beyond.

Officials familiar with the discussions said the deal aligns closely with President Donald Trump’s stated focus on countering the influence of rival powers in developing economies through market-driven investment rather than aid. By mobilising private capital alongside development finance tools, Washington aims to deepen economic ties with partners while promoting supply chain security in areas such as rare earths and battery metals.

For Abu Dhabi, the partnership underscores the UAE’s strategy of positioning itself as a global investment hub that bridges Western capital and high-growth markets across Africa, Asia and parts of Latin America. IHC, which has rapidly expanded from its roots in food and agriculture into energy, mining, logistics and technology, has been central to that push, using acquisitions and joint ventures to build platforms with international reach.

People close to the company said the agreement with the DFC reflects a deliberate move to co-invest with sovereign-backed institutions that can unlock projects in jurisdictions where political or regulatory risk has deterred conventional investors. By sharing due diligence and governance standards, the two sides aim to crowd in additional private capital over time.

Critical minerals sit high on the agenda. Governments and manufacturers across the US and Europe have been seeking alternatives to dominant supply chains, particularly in processing and refining. Investments backed by IHC and the DFC are expected to focus on mining, midstream processing and logistics, with an emphasis on environmental and social safeguards to meet global standards.

Energy is another focal point, spanning conventional infrastructure, gas-to-power projects and renewables. While the DFC has historically supported energy access in developing countries, collaboration with a diversified conglomerate such as IHC could expand the scale and complexity of projects, including integrated energy and transport corridors that underpin industrial development.

Healthcare and food security investments are intended to strengthen local production and distribution capacity in markets vulnerable to supply disruptions. Executives involved in the talks said the partners are examining opportunities ranging from pharmaceutical manufacturing to cold-chain logistics and agri-processing, sectors that have gained prominence as governments reassess dependence on imports.

The inclusion of ICT reflects the growing role of digital infrastructure in economic growth and national security. Potential investments include data centres, fibre networks and technology-enabled services that support financial inclusion and e-government, areas where development finance institutions have sought private partners with operational expertise.

Analysts view the agreement as emblematic of a broader trend in which development finance bodies are shifting from isolated projects to platform-style partnerships with large corporates and investors. Such models are seen as better suited to deploying capital quickly and managing complex assets across multiple jurisdictions.