Investor frenzy Special Purpose Acquisition Company The oil-rich Gulf region is accelerating its development. Abu Dhabi sovereign fund Mubadala is preparing to launch two Spacs there, and a Dubai-based asset management company is raising US$200 million for mergers with Middle Eastern companies.

For months, regional financiers have been planning to expand Spacs, or blank check companies, into booming markets. These companies first go public on the stock market and then look for companies to merge with.

Those who listened to the briefing said that Mubadala Investment Company has been looking for potential investors for two Spacs that focus on technology and healthcare.

Roadshow is coming MubadalaBy 2020, it has achieved record profits and growth, and its core investment areas have been shifted from petrochemicals and manufacturing to emerging industries such as technology, healthcare and infrastructure. Mubadala declined to comment.

Interest in Spacs has slowed in recent months After experiencing some disappointing stock price performance and increasing regulatory review in the United States.

However, in the Gulf region, investors are worried about missing out on earnings. Sovereign funds and family offices are also keen to use the industry to increase investment in technologies and other “new economy” businesses that have flourished during the pandemic.

A financier based in Dubai said: “Suddenly, SPAC became the flavor of the month here.” “There is a niche market in the Middle East, Africa and South Asia-no one pays attention to these markets.”

FIM Partners, a Dubai-based cutting-edge asset management company backed by Egyptian investment bank EFG-Hermes, has been marketing to investors this week as it seeks to raise 200 million yuan through Frontier Investment Corp’s Nasdaq initial public offering For the dollar, this may be announced as early as Thursday, people familiar with the matter said.

They added that under the advice of JPMorgan Chase, the company intends to merge with target companies engaged in technology, digital media, e-commerce or financial technology in the Middle East, Africa, South Asia or Southeast Asia. FIM could not be reached for comment, and JPMorgan Chase declined to comment.

Regional music streaming service company Anghami said in March that its goal is to list on the Nasdaq at a price of US$220 million through a merger with Singapore’s Spac.

Global Spac Partners raised US$160 million on Nasdaq in April to seek acquisitions in the Middle East, South Asia, and Southeast Asia. The vehicle’s CEO, Bryant Edwards, previously worked at another Spac, which merged with Brooge Energy, a UAE-based oil services company, in 2019.

The Saudi Sovereign Public Investment Fund has also invested in Spacs globally and remains the largest shareholder of electric vehicle start-ups Sober carThe company’s goal is to achieve a valuation of $24 billion by merging with a blank check company controlled by veteran deal maker Michael Klein.

The Dubai-based financier said that Spac for the Middle East faces challenges in identifying potential merger candidates, but bankers are still focusing on 5 to 10 potential targets.

Others are skeptical about the region’s ability to maintain the Spac model, saying that most transactions are likely to fail.

“Anyone can form a space… But all of this is under implementation.” An investor said. “The goal needs to be in a sexy industry, with a good growth plan and complete with the correct valuation-it’s complicated.”



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