|By TAP Staff| Dubai buyout firm Abraaj is teaming up with TPG Capital, based in Fort Worth, Texas, for a deal to buy a majority stake in Saudi Arabian fast-food chain Kudu, it has been reported.
Kudu operates about 200 outlets in Saudi Arabia selling grilled chicken sandwiches, burgers and breakfasts.
According to Bloomberg, the pickup in Middle East investment comes as dealmaking by private-equity firms in the West has slowed.
The value of buyouts in the U.S. slumped by 76 percent to $20.8 billion through Sept. 19 compared with the same period in 2013, according to data compiled by Bloomberg. In Europe, dealmaking dropped 41 percent to $17.4 billion.
One reason for the new interest in the Middle East is that it offers richer opportunities than the West. The MSCI World Index, which tracks developed equity markets around the globe, is up 116 percent since its March 2009 low — higher prices make it harder for private-equity firms to find bargain companies to buy.
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