Abraaj Capital will invest in up to 15 small businesses across the Middle East this year as the private-equity firm seeks to become a global player among small to medium enterprises.
The Dubai company's newly acquired stake in The Entertainer, a publisher of discount coupons, is the 14th investment made by its US$650 million (Dh2.38 billion) strategic fund, Riyada Enterprise Development, which was set up in 2010 to invest specifically in small businesses across the region.
"We invest in companies with proven business models that are profitable today but where the real growth is ahead of them," said Tom Speechley, the chief executive of Riyada.
Last month, Abraaj bought Aureos Capital, a London-based specialist investor in small to medium enterprises (SMEs).
The combined entity now has $7.5 billion of assets under management, with about $2bn earmarked for fast-growing emerging markets.
Riyada and the Aureos assets now come under the same umbrella, creating what Abraaj deems "the world's largest SME-focused private-equity group in the high growth markets".
"Aureos has been [investing] in emerging markets for many years, and we have been doing it in the Middle East and North Africa for a few years.
There's a great geographical fit," said Mr Speechley.
"Being part of the broader Aureos platform will be of great significance for a company like The Entertainer. In a sense, it is the archetypal company that we would invest in."
Mr Speechley declined to disclose the value of investment in The Entertainer.
In the face of a burgeoning youth population across the Middle East and North Africa, SMEs have been talked of as a key area to provide jobs and growth in emerging economies.
In Dubai, about 95 per cent of companies are small businesses, employing about 40 per cent of the labour force.
But despite this growing importance of SMEs, bank lending to the sector has been weak, making funding from investors, such as Riyada, highly sought-after.
To deem an investment a success, Mr Speechley said his company would look to earn three to four times the amount of capital it invested in a small business.
"Sometimes you make a lot more and sometimes a lot less.
"There's no guarantees, but that's the level we're aiming for," he said.
Riyada will largely invest in any sector but prefers entrepreneurially run businesses that are suitable to adapt to new regional markets and can leverage new technologies to further their operations.
It was attracted to The Entertainer because it is still being led by its founder and the discount-voucher company has also been investing in its online business.
Riyada seeks investment from a range of sources, including institutions such as the European Investment Bank and the Overseas Private Investment Corporation, as well as high-net-worth individuals.
In conjunction with the Palestine Investment Fund, Bank of Palestine, Cisco and the European Investment Bank, Riyada announced its had raised a $36m fund this month to invest in Palestinian small companies.
Thimar Agricultural Investment Companyreceived was the fund's first investment in the Palestinian Territories.
After the completion of the buyout of Aureos, Abraaj operates in more than 30 countries, and manages investments in 153 companies with a team of 150 executives.
rjones@thenational.ae
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Gran Gala del Calcio 2019 winners
Best Player: Cristiano Ronaldo (Juventus)
Best Coach: Gian Piero Gasperini (Atalanta)
Best Referee: Gianluca Rocchi
Best Goal: Fabio Quagliarella (Sampdoria vs Napoli)
Best Team: Atalanta
Best XI: Samir Handanovic (Inter); Aleksandar Kolarov (Roma), Giorgio Chiellini (Juventus), Kalidou Koulibaly (Napoli), Joao Cancelo (Juventus*); Miralem Pjanic (Juventus), Josip Ilicic (Atalanta), Nicolo Barella (Cagliari*); Fabio Quagliarella (Sampdoria), Cristiano Ronaldo (Juventus), Duvan Zapata (Atalanta)
Serie B Best Young Player: Sandro Tonali (Brescia)
Best Women’s Goal: Thaisa (Milan vs Juventus)
Best Women’s Player: Manuela Giugliano (Milan)
Best Women’s XI: Laura Giuliani (Milan); Alia Guagni (Fiorentina), Sara Gama (Juventus), Cecilia Salvai (Juventus), Elisa Bartoli (Roma); Aurora Galli (Juventus), Manuela Giugliano (Roma), Valentina Cernoia (Juventus); Valentina Giacinti (Milan), Ilaria Mauro (Fiorentina), Barbara Bonansea (Juventus)
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
Points about the fast fashion industry Celine Hajjar wants everyone to know
- Fast fashion is responsible for up to 10 per cent of global carbon emissions
- Fast fashion is responsible for 24 per cent of the world's insecticides
- Synthetic fibres that make up the average garment can take hundreds of years to biodegrade
- Fast fashion labour workers make 80 per cent less than the required salary to live
- 27 million fast fashion workers worldwide suffer from work-related illnesses and diseases
- Hundreds of thousands of fast fashion labourers work without rights or protection and 80 per cent of them are women
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Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
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Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
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The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
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Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its effects
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
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Company name: NutriCal
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Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.