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Al Mal Capital offers UAE's first private equity fund in food and beverages sector

February 4, 2014

Gaurav Ghose Financial Features Editor

DUBAI More restaurants and water and beverages companies coming up in the region to tap into the increased demand for consumers with higher spending capacity have led a local investment bank to launch UAE's first food and beverage private equity fund. The Dubai -based Al Mal Capital's fund private placement is being offered to a group of qualified investors who meet a set of conditions specified in the fund's private placement memorandum. "We are investing in local restaurants, catering, water bottling companies, etc.—all the subsectors—across the Mena and Turkey ," said Tariq Qaqish , head of asset management at Al Mal Capital . "There is very high appetite to this industry—this is one of the, among the best performing sectors in the GCC region and specifically the UAE . With an increase in population with higher disposable income and change of the habits of the people in terms of spending per GDP, it's becoming a success story. Of course the best thing in the UAE is tourism, which is driving the sector." In fact, MacDonalds on Sunday announced the its plan to open 11 new stores in the UAE as other burger chains such as Fatburger and Grand Central go ahead with more openings. The first private placement fund for qualified investors, that will include institutional and high net worth investors, will have a target of Dh60 million. "This amount will allow us to optimise maximum returns for investors," said Qaqish. The initial price of units of the fund will be set at AED100 per unit, and there will be a minimum initial subscription to the fund of AED250,000. The initial subscription period for the Al Mal F&B Fund will extend from 25 January until 26 February 2014 .

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Source: Gulf News (United Arab Emirates)

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