UAE to buy $855m stake in Israel financial firm

The Abu Dhabi Developmental Holding Company (ADQ) is in talks to buy a stake worth about $855 million in Phoenix Group, an Israeli financial services firm, the Business Times reports.

The funds are expected to buy a 25-30 per cent stake in Phoenix, in partnership with Gallatin Point Capital, according to a statement.

“The two are in advanced talks with the Emirate funds on the proposed deal, but did not provide any terms. Phoenix is listed on the Tel Aviv stock exchange, with a market value of US$2.85 billion,” the statement added.

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In March 2021, the United Arab Emirates (UAE) announced that it was setting up a $10 billion investment fund aimed at strategic sectors in Israel. The two countries normalised relations in September 2020 in what was seen as a major triumph of former US President Donald Trump’s time in office.

Reporting on the UAE-Israeli investment fund, Abu Dhabi’s official news agency WAM said that the Gulf kingdom will use the $10 billion fund to “invest in and alongside Israel, across sectors including energy manufacturing, water, space, healthcare and agri-tech.”

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