Air Arabia disclosure draws investor attention to Abraaj fallout

Arif Naqvi founder and CEO of Abraaj Group pictured at the annual meeting of the WEF in Davos. (Reuters)
Updated 19 June 2018
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Air Arabia disclosure draws investor attention to Abraaj fallout

  • Venture capital fund appetite could be hit
  • Air Arabia stock steadies after disclosure

LONDON: Air Arabia’s disclosure that it was an investor in Abraaj has focused investor attention on other market fallout after the buyout firm filed for voluntary liquidation last week.
Air Arabia shares held steady in Tuesday trading, a day after the stock tanked on the revelation the carrier was exposed to Dubai-based Abraaj.
The Sharjah-based carrier’s shares were slightly higher in afternoon trading, after slumping to an 11-month low on Monday.
It said it had appointed a “team of experts” to ensure the airline’s business interests are protected.
The size and nature of the Air Arabia investment was not disclosed.
“It will reduce the appetite for new venture capital or private equity funds,” said Jaap Meijer, head of equities research at Arqaam Capital.
Abraaj filed for a court-supervised provisional liquidation in the Cayman Islands last week, in a bid to head off petitions by creditors to wind up the firm, following allegations of financial mismanagement.
Abu Dhabi Capital Management, a unit of alternative investment group Abu Dhabi Financial Group, has made a conditional offer to buy Abraaj’s investment management business for $50 million, according to a document reviewed by Reuters.


BlackRock boss remains bullish on Saudi Arabian market

Updated 17 July 2018
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BlackRock boss remains bullish on Saudi Arabian market

LONDON: Larry Fink, the head of the world’s biggest asset manager, is confident about the future of the Saudi Arabian market following a visit to the
Kingdom.
Fink, CEO of BlackRock, said that he was “more excited about the opportunity” in Saudi Arabia following his visit.
He added that he would not be surprised to see an initial public offering of Saudi Aramco in some form next year, perhaps on the Saudi stock market, known as the Tadawul.
He was speaking on the day Black Rock reported smaller demand for its funds on Monday, and its stock dropped despite a better-than-expected quarterly profit. Net income attributable to the company rose to $1.07 billion in the second quarter, up more than 25 percent from $854 million a year earlier, Reuters reported.
The company faced a difficult market during the quarter, reporting an industrywide slowdown in the demand for exchange-traded funds (ETFs).
The BlackRock CEO said he would not be surprised to see an initial public offering of Saudi Aramco in some form next year.