Arab Spring countries ripe for the picking (By IFN)

Arab Spring countries ripe for the picking

Daily Cover

GLOBAL: Abraaj Group and Majid Al Futtaim Holding are targeting acquisitions in North Africa, as demand for food, healthcare and banking increases particularly in the Arab Spring countries. Abraaj Group, which has US$7.5 billion in assets, plans to raise up to US$250 million in a sophomore North African fund after the successful launch of its debut fund previously. Abraaj, which has a stake in more than 30 companies across the Middle East and North Africa, has invested its money in medical laboratories in Egypt, aircraft maintenance facilities in Jordan and technology companies in Egypt. According to Ahmed Badreldin, the head of the Middle East and North Africa at Abraaj, the company usually invests between US$10-100 million per equity transaction. The company, which has invested in over 45 countries over the last 10 years, has over US$7.5 billion in funds under management, and is partner with more than 150 companies worldwide. In 2006, the firm launched a US$2 billion Shariah compliant growth and infrastructure fund; which has a tenor of 10 years. Majid Al Futtaim Holding, another highly-rated corporate based in Dubai, is also said to be looking to Egypt for acquisitions and development projects. The firm, which issued a US$400 million Sukuk on the 31st January 2012, is looking to buy the Metro supermarket chain and to build a mall outside Cairo. “There is this myth that Arab Spring economies have no growth, no opportunities. That's not really the case. Abraaj Group’s existing businesses in North Africa are increasing revenue by about 20% a year,” said Ahmed.