Asma Capital has agreed to buy a stake in Utico, a private United Arab Emirates utility company of the water business, in a deal worth US$147 million.

The exact size of the stake wasn't revealed. In the first quarter of 2017 the deal, which includes equity and project finance, is expected to be completed.

The purchase is being conducted through a fund managed by Asma, IDB Infrastructure Fund II. Sovereign institutions including Islamic Development Bank, Saudi Arabia's Public Investment Fund and Public Pension Agency, and the ministries of finance of Bahrain and Brunei own Asma.

Utico, which has investments in the UAE, said it hoped to become involved in projects overseas. Furthermore, in August, it announced it would invest about US$185 million to more than double its water desalination capacity in two years. Asma aims to invest further with Utico in its other projects and businesses.