UAE funds to buy US$855m stake in Israeli financial firm

ABU Dhabi funds, led by the Abu Dhabi Developmental Holding Company (ADQ), are in talks to buy a stake worth about US$855 million in Phoenix Group, an Israeli financial services firm.

The funds are expected to buy a 25 per cent to 30 per cent stake in Phoenix, in partnership with Gallatin Point Capital, according to a statement.

Gallatin Point and another private equity company, Centerbridge Partners, hold 33.4 per cent of Phoenix.

The statement said that the two are in advanced talks with the Emirate funds on the proposed deal, but did not provide any terms. Phoenix is listed on the Tel Aviv stock exchange, with a market value of US$2.85 billion.

Israel and the UAE have sought to improve defence and economic relations since agreeing to forge diplomatic ties in 2020. The move was a historic breakthrough, and hailed by the US as a step toward forging peace in the Middle East.

Since the agreement was brokered, cross-border trade and deals between the two countries have steadily grown. Wealth fund Mubadala Investment purchased a US$1 billion stake in Israel’s second-biggest natural gas field last year. Meanwhile, Abu Dhabi’s Group 42 set up a venture with Israel’s Rafael Advanced Defense Systems, to develop artificial intelligence (AI) and big data analysis.

SEE ALSO

Deutsche Bank targets Asia, Middle East for wealth ambitions

Americana’s landmark Saudi-UAE IPO draws US$105b in orders

UAE should give oil and gas players bigger role at COP28, panellist says

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

A number of UAE-based companies and funds have opened offices in Israel, including AI and cloud computing company G42, as well as the state-run Abu Dhabi Investment Office. ADQ has already invested in the Israeli lab-grown meat company Aleph Farms. BLOOMBERG