Abu Dhabi funds consider multi-billion investments in Turkey | Business and Economy News

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Talks between funds from the UAE’s oil capital and Turkish companies have been going on for months, people familiar with the matter told Bloomberg News.

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Makeshift funds in Abu Dhabi are on the prowl in Turkey, looking for targets for billions of dollars in investments, according to people familiar with the matter.

Talks between funds from the UAE’s oil capital and Turkish companies have been going on for months, residents said. The interest preceded a landmark phone conversation in August between the Crown Prince of Abu Dhabi, Sheikh Mohammed Bin Zayed Al Nahyan and Turkish President Recep Tayyip Erdogan, amid growing signs of a thaw in relations.

The investment talks provide further evidence of a turnaround in relations between the two countries that have been at daggers drawn for much of the past decade on everything from Islamist movements to conflicts in Syria and Libya.

Possible deals could revive an investment pipeline that has faltered amid long-standing tensions over Turkey’s support for the Muslim Brotherhood, an Islamist group banned in the United Arab Emirates. Relations reached a low point in 2016 when Turkish state media accused the UAE of supporting an attempted coup against Erdogan.

Among funds considering Turkish investments in recent weeks include Abu Dhabi Investment Authority, or ADIA, the emirate’s largest wealth fund that has amassed assets estimated at $ 686 billion, and ADQ, according to three people.

The ADQ alone plans to spend up to $ 1 billion on health care and fintech goals, one of the people said. With assets estimated at $ 110 billion, ADQ is the emirate’s third sovereign wealth fund after ADIA and Mubadala Investment Co.

ADQ could not be reached immediately for comment, while ADIA and the Turkish government’s investment office declined to comment.

More interest

International Holding Co., or IHC, the UAE’s second-largest publicly traded company, said it was evaluating investment opportunities in healthcare and industry. “Turkey has one of the most important food processing facilities, which can be a great investment opportunity for us,” its spokesperson said.

Chimera Investments LLC, a private investment firm that is part of the Royal Abu Dhabi Group, could allocate up to $ 1 billion, according to a person familiar with the talks.

Last month’s call between the leaders of the two countries followed a surprise meeting in August between Erdogan and the UAE’s national security adviser, Sheikh Tahnoon bin Zayed Al Nahyan. Tahnoon is president of ADQ, IHC and Royal Group.

So far, the Arab nation’s biggest investment in Turkey is Emirates NBD’s acquisition of Istanbul-based Denizbank AS from Russian company Sberbank PJSC in 2019.

Earlier this month, Aramex PJSC, a Dubai-based logistics company in which ADQ bought a roughly 22% stake last year, said it was in talks with MNG Kargo over a takeover of the delivery company based in Istanbul.


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