Abraaj Group seeks stake in Saudi fast-food chain

FOR several months now investor, Abraaj Group has been in negotiations with TPG Capital to purchase a major stake in Kudu, a fast-food chain with over 200 outlets in Saudi Arabia. According to a Reuters report, plans may soon come to fruition. Should it push through, it would be the first Middle East venture for TPG, a private equity and venture capital based in the United States. It won’t be the first for Abraaj which has investment in Egypt, and is currently eyeing others in Africa. The company has a wide global presence particularly in Asia, the Middle East, Africa and Latin America.

There is an upward trend in foreign private equity firms investing in the Middle East, not only in the food and beverage industry, but in others as well. Whilst the region brings profitable business, it has to be said that private equity investments are declining in the US and Europe.