Surplus ‘can be channeled into housing projects’

Updated 21 December 2012
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Surplus ‘can be channeled into housing projects’

A number of Saudi economists and financial experts have called on the government to allocate more resources from the Kingdom’s budget surplus for 2012, estimated at SR 500 billion, to finance more housing and health projects.
The plea comes a day after Municipal and Rural Affairs Minister Prince Mansour bin Miteb launched construction of 25,000 new housing units in the Bay of Salman.
About 5,000 of these units will be completed in three years at a cost of SR 1.5 billion.
“We expect greater support for housing projects next year,” said Wadie Kabili, professor of economics at King Abdulaziz University in Jeddah. “We are also seeking more government efforts to fight unemployment,” he told Al-Madinah Arabic daily.
Ahmed Al-Zailaee, a member of the Shoura Council and professor of history and antiquities at King Saud University, said more government funds for residential projects would help ease the housing crisis.
The Jeddah Development and Urban Regeneration Company (JDURC) hosted Wednesday’s launching ceremony in the Bay of Salman.
Prince Mansour commended the Jeddah Municipality and JDURC’s leaders for their efforts in serving the nation and the well-being of Saudi nationals.


Abraaj gets $50m Abu Dhabi bid for investment management business

Updated 21 June 2018
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Abraaj gets $50m Abu Dhabi bid for investment management business

  • Abu Dhabi Capital Management's (ADCM) bid is well below the $125 million
  • Abraaj, which declined to comment on ADCM's offer, has debt estimated at more than $1 billion

ABU DHABI: An Abu Dhabi Financial Group company has made a conditional $50 million offer to buy private equity firm Abraaj's investment management business, a document reviewed by Reuters shows.
Abu Dhabi Capital Management's (ADCM) bid is well below the $125 million offered by New York-based Cerberus Capital Management before Dubai-based Abraaj filed for provisional liquidation in the Cayman Islands last week.
It was unclear whether the terms of the offer that Cerberus made were different from the one made by ADCM.
ADCM stated its terms in a letter to Abraaj's financial adviser Houlihan Lokey dated June 17, which said it will not buy any companies owned by Abraaj and its affiliates and will not assuume any liabilities.
Abraaj has been bruised by a row with four of its investors, including the Bill & Melinda Gates Foundation and International Finance Corp (IFC), in a $1 billion healthcare fund.
It has denied it misused the funds.
Abraaj Holdings said on Tuesday a court in the Cayman Islands ordered the appointment of PwC as provisional liquidators of Abraaj Holdings and Deloitte as provisional liquidators of Abraaj Investment Management Ltd., Abraaj's fund management business.
ADCM, an ADFG entity based in Cayman Islands, wants to become the General Partner of the limited partnerships, which have committed money to Abraaj's various private equity funds.
Abraaj acts as the general partner for these limited partnerships.
Some Gulf limited partners - ranging from financial institutions to pension funds and family businesses - in funds of Abraaj had asked ADFG to explore a buyout of Abraaj's investments business as they were concerned about their holdings, two sources familiar with the talks told Reuters.
Abraaj, which declined to comment on ADCM's offer, has debt estimated at more than $1 billion, sources have told Reuters.
Since the dispute went public early this year, Abraaj has split its investment management business and holding company, while its founder Arif Naqvi stepped aside from the day-to-day running of its private equity fund unit and the firm halted its investment activities.