Dubai’s Shuaa plans SPACs worth $600 million

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  • The move is expected to open up the booming market for special purpose acquisition vehicles to Gulf investors

  • Shuaa has approached investment banks to explore setting up the SPACs

Dubai’s Shuaa Capital is planning to set up three blank-check companies of around $200 million each.

Blank-check companies are corporate shells that raise money from investors with the aim of merging with private businesses to take them public.

This will rapidly open up the booming market for special purpose acquisition vehicles to Gulf investors.
Shuaa, according to Bloomberg, approached investment banks to explore setting up the SPACs to pursue deals in the energy, finance and technology sectors, the people said, declining to be named for information privacy. The SPACs are expected to list in the US this year, the people said. Shuaa manages close to $14 billion in assets.

The SPACs are expected to list in the U.S. this year and will target companies in the Middle East and North Africa, according to Bloomberg. Shuaa’s spokesman declined to comment.

Investor enthusiasm for SPACs is finally catching on in the Middle East at a time when the momentum for the vehicles has waned in the U.S. after the lackluster share performance of recent deals and greater regulatory scrutiny.

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