The fund is aimed at promoting the development of regional industrial products, services and technologies in the electricity and water sectors across the Middle East, Ennis Rimawi, managing partner at Catalyst, said at the World Economic Forum in Sharm el-Sheikh.

'Everybody talks about building sustainable knowledge-based industries and economies. We are focused on doing it in the areas where the region has a competitive advantage globally,' he said.

The group will begin making investments from June, drawing on initial commitments of $20 million already raised from the founding regional investors. Commitments for the fund's remaining $60 million are expected to be secured by the end of the year.