The Dubai-based private equity firm Abraaj Group plans to exit between 12 and 20 businesses a year globally, with half of them coming from the Middle East and Africa.
Abraaj, one of the largest private-equity players in the region, also plans to make an equal number of investments globally, said Mustafa Abdel-Wadood, partner and global head of Abraaj’s regional funds business.
Divestments in the Mena region are set to increase, according to the non-profit Mena Private Equity Association, as fund managers seek to exit pre-financial crisis investments. Total disclosed exits last year rose to 20 from 16 in 2013, according to the association.
Abraaj, which has about $9 billion in assets under management globally, made two exits this week alone – selling stakes in Network International and the African insurer Saham Finances.
Most of Abraaj’s exits are trade sales, but exits as initial public offerings (IPOs) are few and far between.
“Increasingly you are starting to occasionally see financial sponsors looking to acquire stakes in our businesses,” said Mr Abdel-Wadood. “For the assets that we hold we feel that some of them can be actually strong IPO candidates but the market is challenging in general.”
Nonetheless, Abraaj in May sold 80 per cent of its stake in Egypt’s medical diagnostics company, Integrated Diagnostics Holdings, on the London Stock Exchange, valuing the company at about $670m.
Abraaj is ploughing ahead with investments after closing two funds this year – its second North Africa fund at $375m and its $990m sub-Saharan Africa fund.
“These markets have generally seen occasional volatility around currencies, and occasional political challenges, but as we move away from the day-to-day headlines there are positive trend lines,” said Mr Abdel-Wadood. “These are young and growing populations with a growing middle class, a growing consumer class.”
Disclosed investments in Mena last year rose 118 per cent to $1.5 billion as more and bigger deals were announced, with the consumer sector one of the highlights of investments, according to the Mena Private Equity Association. Total funds raised in Mena increased to $1.23bn last year from $744m a year earlier, marking the highest level of annual fundraising by value since 2008, according to the association.
dalsaadi@thenational.ae
Follow The National's Business section on Twitter
UAE currency: the story behind the money in your pockets
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The%20Color%20Purple
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EBlitz%20Bazawule%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EFantasia%20Barrino%2C%20Taraji%20P%20Henson%2C%20Danielle%20Brooks%2C%20Colman%20Domingo%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The stats: 2017 Jaguar XJ
Price, base / as tested Dh326,700 / Dh342,700
Engine 3.0L V6
Transmission Eight-speed automatic
Power 340hp @ 6,000pm
Torque 450Nm @ 3,500rpm
Fuel economy, combined 9.1L / 100km
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5