Rothschild & Co, a corporate bank in the United Arab Emirates, is planning to open a private banking office in Dubai to strengthen its wealth management and sovereign funds business in the region. The move is part of the bank's strategy to expand its presence in the Gulf and tap into the growing demand for private banking services. French investment funds, including Eurazeo and Ardian, are also looking to establish bases in Riyadh and Abu Dhabi, respectively, to capitalize on investment opportunities in the region. This reflects the increasing interest of international financial institutions in the Gulf market and their recognition of its potential for growth and profitability.
In addition to Rothschild & Co, other financial players are also making moves in the Gulf region. Shipping companies that use Dubai ports will face new handling charges, leading to a significant annual shortfall. This development could impact the cost of doing business for these companies and potentially affect trade flows in the region. Furthermore, French investment funds are targeting wealthy Saudi business dynasties, with the Al Othaim conglomerate being courted. Tikehau and Ardian, two prominent French investment firms, are positioning themselves as financial hubs for French defense industries in the region, highlighting the growing importance of the Gulf market for the defense sector.
These developments in the Gulf region demonstrate the increasing interest and investment activity in the area. The presence of international financial institutions and investment funds in Dubai, Riyadh, and Abu Dhabi reflects the region's attractiveness as a hub for finance and investment. The expansion of private banking services and the focus on wealth management and sovereign funds highlight the growing wealth and investment potential in the Gulf. Additionally, the involvement of French investment funds and their targeting of wealthy Saudi business dynasties underscore the importance of the Gulf market for international investors. The moves by Rothschild & Co and other financial players in the region are indicative of the opportunities and potential for growth in the Gulf's business and investment landscape.
Ruya Partners, a partner-owned private credit firm based in ADGM, has invested SAR 94 million ($25 million) in GymNation, supporting the management-led buyout of all equity previously owned by JD Gyms. GymNation, a UAE-based gym operator, has experienced rapid growth and plans to expand into Saudi Arabia, with six locations set to open by the first half of 2024. Ruya Partners praised GymNation's high-quality budget offering and its inclusive culture. The financing from Ruya Partners was critical for GymNation's management buyout and was structured to accommodate the company's growth plans. Regional investors are increasingly interested in backing home-grown brands like GymNation. Ruya Partners is an independent private credit firm regulated by the ADGM Financial Services Regulatory Authority. GymNation is the leading gym operator in the UAE, with 12 locations and over 60,000 members. Tricap Investments, a diversified principal investment group, also supported the deal.
The rise of Gulf as a financial and investment hub is evident from the expansion plans of Rothschild & Co and other financial players in the region. The increasing interest of international financial institutions and investment funds in Dubai, Riyadh, and Abu Dhabi reflects the attractiveness of the Gulf market for finance and investment. The focus on private banking services, wealth management, and sovereign funds highlights the growing wealth and investment potential in the Gulf. Furthermore, the involvement of French investment funds and their targeting of wealthy Saudi business dynasties underscores the importance of the Gulf market for international investors. The investment in GymNation by Ruya Partners further demonstrates the interest of regional investors in supporting home-grown brands and the potential for growth in the Gulf's business and investment landscape.
Dubai has established the Dubai Investment Fund to generate returns and enhance the emirate's financial stability. The fund, chaired by Sheikh Maktoum bin Mohammed bin Rashid al-Maktoum, will be responsible for investing the government funds, surpluses, and general reserve locally and internationally. It aims to bolster the financial stability of the Dubai Government by financing the government's deficit and establishing strong financial reserves. The fund will replace the Dubai government as the owner of shares in companies and will take over all associated contracts, agreements, deposits, bank accounts, and loans. Dubai's government has a privatization plan to list 10 state-linked companies to boost stock market activity and compete with larger exchanges in the region. Last year, it raised nearly $8.5 billion from five initial public offerings (IPOs).
Golub Capital, a private credit investment firm, is planning to establish a presence in the UAE to raise funds for its private credit strategies. The company aims to expand its global footprint and sees the Gulf region as a strategic location. Golub Capital lends primarily to private equity-backed, mid-market companies in the US. The private credit market is growing rapidly and is estimated to reach $2.3 trillion by 2027. Despite headwinds in the private equity sector, Golub Capital expects new deals to pick up in the next 18 months. The company has managed over $150 billion in loans since 2004.
These recent developments in the Gulf region highlight the increasing interest and investment activity in the area. The presence of international financial institutions, investment funds, and private credit firms in Dubai, Riyadh, and Abu Dhabi reflects the region's attractiveness as a hub for finance and investment. The expansion of private banking services, wealth management, and sovereign funds, along with the rise of private credit investment, underscore the growing wealth and investment potential in the Gulf. The moves by Rothschild & Co, Ruya Partners, and Golub Capital demonstrate the opportunities and potential for growth in the Gulf's business and investment landscape. Dubai's establishment of the Dubai Investment Fund further enhances the emirate's financial stability and positions it as a key player in the region's investment landscape. Investcorp's plan to list a portfolio company in the Gulf in 2024 adds to the investment momentum in the region. The $40 million investment by Main Street Capital in Gulf Manufacturing supports the company's acquisition of Maass Global Group and strengthens its position in the oil and gas industry.
Singapore-based venture capital firm Golden Gate Ventures has closed the first US$100 million MENA fund, making it the first international VC fund to be set up and managed within Qatar. The fund includes US$20 million in commitments from Qatari investors, with anchor investors including Al Khor Holding, Al Attiya Group, and Sheikh Jassim Bin Jabor Al Thani. The fund will target startups in sectors such as alternative energy, green technology, B2B artificial intelligence (AI), energy-related deep tech, fintech, health tech, and edtech. Michael Lints, Partner at Golden Gate Ventures, has relocated to Qatar to oversee the firm's plans to expand its presence in the MENA region and strengthen ties with Qatari investors. The announcement coincides with the Qatar Economic Forum, where the fund was unveiled. Golden Gate Ventures has also released a primer on Qatar's startup ecosystem titled 'Qatar Rising: Where Ambition and Capital Converge.'
These recent developments in the Gulf region highlight the increasing interest and investment activity in the area. The presence of international financial institutions, investment funds, and private credit firms in Dubai, Riyadh, and Abu Dhabi reflects the region's attractiveness as a hub for finance and investment. The expansion of private banking services, wealth management, and sovereign funds, along with the rise of private credit investment, underscore the growing wealth and investment potential in the Gulf. The moves by Rothschild & Co, Ruya Partners, and Golub Capital demonstrate the opportunities and potential for growth in the Gulf's business and investment landscape. Dubai's establishment of the Dubai Investment Fund further enhances the emirate's financial stability and positions it as a key player in the region's investment landscape. Investcorp's plan to list a portfolio company in the Gulf in 2024 adds to the investment momentum in the region. The $40 million investment by Main Street Capital in Gulf Manufacturing supports the company's acquisition of Maass Global Group and strengthens its position in the oil and gas industry. Golden Gate Ventures' closure of the US$100 million MENA fund in Qatar expands its presence in the region and targets startups in various sectors.