Gulf Capital is launching a credit fund of up to US$300 million (Dh1.1 billion) for the Middle East and Turkey to help plug a liquidity gap in the market following the global financial crisis.
Offering credit to fast-growing businesses and acquisition finance to investors, the fund signals the growing sophistication of the regional private-equity industry.
Although such funds have operated as important financing vehicles for years in the US and Europe, Gulf Capital's product is believed to be the largest of its kind to launch in the region.
"The launch of the credit business is a timely one and will play an important role in providing much-needed liquidity and growth capital to mid-market companies in the region," said Hareb al Darmaki, the chairman of Gulf Capital, an alternative asset management firm based in Abu Dhabi. "Long-term, this will translate into a positive contribution and stimulus to the overall economy."
With bank lending in the region still constrained by the stresses of corporate restructuring and low appetite for new risk, credit growth from traditional avenues remains limited.
Bank lending has slipped from a peak of $110bn in 2007 to $54bn last year, according to Gulf Capital estimates. As a result a funding vacuum has emerged.
Hopes are growing, however, that private-equity investors may help to fill some of the shortfall as the industry matures. As much as $10bn in dry powder remains on the sidelines after the global downturn discouraged fresh deals in the regional industry.
Investment opportunities are emerging as the region's economies rebound, albeit patchily due to pockets of instability in some countries.
"If you look at the Gulf, Saudi Arabia, the UAE and Qatar are still growing strongly, Turkey's economy is booming and Egypt is the largest Arab market and will emerge from its current instability," said Dr Karim el Solh, the chief executive of Gulf Capital.
The company has already held talks with pension funds, sovereign wealth funds and other institutional investors, both in the Gulf and globally, interested in investing in the fund.
As well as investing in private equity-backed acquisitions, the fund will also provide growth capital for companies where debt finance is an attractive alternative to equity. Investments in corporate loans and bonds will also be assessed.
"A lot of fast-growing companies are unable to secure funding because they don't have the required collateral in the form of buildings and other assets," said Dr el Solh. "But we are happy to lend against cash flows generated by the borrower."
As such, the financing will offer longer maturities and more deferred repayment dates than usually provided by traditional lenders, Gulf Capital says. The company aims to launch the fund by the end of the year after regulators' approval.
Known as Gulf Credit Partners, the fund will be co-led by Christopher Baines, an investment industry veteran with more than 25 years' experience across banking, lending, leveraged buy-out financing and investment management.
He will be joined shortly by another co-head with regional finance experience.
tarnold@thenational.ae
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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
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
Two products to make at home
Toilet cleaner
1 cup baking soda
1 cup castile soap
10-20 drops of lemon essential oil (or another oil of your choice)
Method:
1. Mix the baking soda and castile soap until you get a nice consistency.
2. Add the essential oil to the mix.
Air Freshener
100ml water
5 drops of the essential oil of your choice (note: lavender is a nice one for this)
Method:
1. Add water and oil to spray bottle to store.
2. Shake well before use.
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
The specs
Engine: 8.0-litre, quad-turbo 16-cylinder
Transmission: 7-speed auto
0-100kmh 2.3 seconds
0-200kmh 5.5 seconds
0-300kmh 11.6 seconds
Power: 1500hp
Torque: 1600Nm
Price: Dh13,400,000
On sale: now
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
