Saudi firm exits contracting company

Riyadh-based Amwal Al Khaleej has sold its 49 percent stake in Dubai Contracting one year after it bought the stake.

Saudi private equity firm Amwal Al Khaleej has sold its 49 percent stake in Dubai Contracting to Bright Start, a private holding company in Dubai. No financial details were disclosed.

Amwal Al Khaleej had purchased a 49 percent stake in the company in November 2007 for an undisclosed sum. The investment was made out of Amwal II, a SAR 1 billion ($266 million; €207 million) fund closed in June 2007.

Dubai Contracting was founded in 1968 and has completed mixed used projects in the UAE including the World Trade Center Residences and Capricorn Tower.

Investors in Amwal II include global investment bank Goldman Sachs and financial services firm Credit Suisse. The Middle East-focused fund aims to aid the expansion of family owned enterprises, following an investment model where it acquires a sizeable minority stake or provides growth capital but in a non-controlling transaction.

In August 2007, the firm invested AED 138 million ($37 million; €29 million) in Right Angle, an outdoor media subsidiary of India’s Laqshya Media.

Founded in 2005, Amwal Al Khaleej is headquartered in Riyadh with offices in Dubai and Cairo. It has approximately SAR 2.5 billion in assets under management.

Amwal Al Khaleej did not reply to requests for comment at press time.