The MENA region has gone through a transformative decade. The GCC countries, historically reliant on hydrocarbon wealth, are diversifying their economies. North Africa, on the other hand, has witnessed a seismic political shift leading to positive economic and social reforms, with governments focused on creating an investment friendly climate, spurring job creation, and driving infrastructure development.
Abraaj is often credited as having pioneered the private equity industry in the region, leading some of the most well-known transactions in the market.
Our investment focus is on cities – not countries – as these are the economic hubs that power our investment decisions. Our strategy leverages the favorable regional demographics, including the young and growing 250 million person-strong MENA population and a growing consumer class.
Our strategy is focused on key sectors that will benefit from the core fundamentals of demographics, urbanization and a rising middle class. These sectors include education, healthcare, financial services, FMCG and food and beverage.
Our local insights and networks stem from a longstanding presence in the region which has been integral to identifying high-growth businesses that seek private capital to accelerate their growth trajectory. Across the Middle East and North Africa, we have created privileged access to transactions, strengthened by our experiences in developing local businesses into regional and global champions.
In 2015, we closed our second generation Abraaj North Africa Fund at US$ 375 million. The Fund targets well-managed, mid-market businesses in Algeria, Egypt, Morocco and Tunisia that have demonstrated robust growth and the ability to become regional leaders in their field.
Our Partner Companies
We have helped pioneer the growth and development of the private equity industry in the region. Through two decades of investing, Abraaj has established a legacy of investing in MENA, developing a purpose built approach whilst consistently delivering attractive risk-adjusted returns to investors.
Partnering with high growth businesses
In June 2017, we announced an exit in Careem, one of the region’s leading transportation businesses, to Kingdom Holding Company. Founded in Dubai in 2012, Careem has grown to be one of the leading transportation and ride hailing businesses across the Middle East, North Africa, Turkey and Pakistan (“MENATP”) region. As of June 2017, Careem is active in over 80 cities, up from 20 at the time of Abraaj’s investment in 2015. Read the case study here.
Realizing the strong opportunity in the Egyptian healthcare sector, Abraaj invested in its first hospital in Egypt in 2014 and, through a series of acquisitions, established the largest integrated hospital group in the country. Cleopatra Hospital Group was successfully listed on the Egyptian Stock exchange in 2016. Read the case study here.
As a continuation of our healthcare strategy, we exited our stake in Integrated Diagnostics Holdings (IDH), the largest fully integrated private sector diagnostics provider in Egypt in 2015 via an IPO on the London Stock Exchange. Over the course of our investment, Abraaj steered an aggressive growth plan leading to the emergence of one of the largest private-sector diagnostics services provider in the Middle East and Africa. IDH’s debut on the LSE marked the first ever primary listing of an Egyptian healthcare business in London. Read the case study here.
In Saudi Arabia, we, alongside TPG, invested in Kudu in April 2015, one of the country’s leading domestic Quick Service Restaurant (“QSR”) chains. Established in 1988 in Riyadh, Kudu has evolved into a vertically-integrated consumer food service company with a presence in the QSR, fast casual and casual dining sectors across Saudi Arabia. Read the case study here.
We were named Private Equity House of the Year for North Africa by Private Equity Africa Awards in 2016. In the same year, Abraaj was also given a special recognition award for Large Cap Deal of the Year for the North Africa Hospital Holdings Group.
In 2015, Abraaj was named Firm of the Year for MENA by Private Equity International.
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