Infrastructure is now recognized as a stand-alone asset class with a number of distinct advantages. In times of economic uncertainty, infrastructure has proved to be a resilient and attractive investment opportunity, with real long-life assets yielding long-term, low-risk, inflation-linked returns.
In the years ahead, opportunities for investment in infrastructure assetsÂ are projected to increase world-wide, as governments seek vehicles to stimulate the economy and creative ways to finance those initiatives. Around the world, development projects are being undertaken to respond to economic needs, to repair and upgrade existing infrastructure facilities and systems and to respond to a global economy that is steadily improving â€“ all of which will open new opportunities for private capital.
Infrastructure Opportunities in Israel
Israelâ€™s infrastructure sector offers potentially attractive investment opportunities with plentiful, quality deal flow in both primary and secondary markets. Its chief growth infrastructure segments include local government authorities, defense industries, private companies and non-profit organizations.
Most infrastructure assets are owned by the Israeli government which recognizes that investment and attention to infrastructure are essential elements of successful future planning and sustainable economic growth. This has resulted in increased efficiencies in government tenders for public-private partnerships. The government also takes a significant involvement in risk allocation â€“ providing guarantees and other safety nets for participants in these projects.
Future government projects include planned new air and sea ports, roads, railways and mass transportation systems, power plants and energy networks, and water systems.