The Overseas Private Investment Corp. has committed $33 million to a new private equity fund investing in environmentally-friendly technology companies in the Middle East and North Africa.

The Catalyst Private Equity Fund focuses on small- and medium-sized companies in the water treatment and alternative energy technology industries in Jordan, Lebanon, Egypt, the West Bank and other countries in the region. It has a target capitalization of $100 million.

Robert Mosbacher, OPIC’s CEO, said the fund should foster economic diversification in the region, by focusing on companies that are currently undercapitalized. “The mission of the fund is to become a catalyst for the creation of globally competitive technology and product sectors in the MENA region, and to generate competitive returns through the establishment of industrial, energy and water technology and product firms,” he said. “Investments in companies that serve these sectors will increase efficiencies in the market, ultimately leading to lower prices for suppliers and consumers.”

OPIC was established as an agency of the U.S. government in 1971 and helps U.S. businesses invest overseas, fosters economic development in new and emerging markets.