Three informed sources revealed to Reuters that Dubai Holding, the investment tool of Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum, is contemplating the sale of its minority stake in Azadea Group, a retail fashion company that operates Inditex stores in the Middle East, such as Zara. Two of the sources, requesting anonymity due to the confidential nature of the matter, stated that Dubai Holding has selected JPMorgan and Rothschild & Co. to advise on the sale of its 25 percent stake in the Beirut-based Azadea.
The three sources added that discussions are in the early stages, and no final decision has been made yet, making it too early to comment on the valuation. One of the sources indicated that Azadea's value exceeded one billion dollars when Dubai Holding acquired a 25 percent stake in 2018. Another source noted that the sale could begin next year and is expected to attract interest from sovereign wealth funds, given the booming consumer sector in the Middle East, where the largely youthful population is spending their increasing wealth.
The Lebanese Dahir family manages Azadea Group, which has partnered with Zara since 1998 and collaborates with other major global brands. The company operates over 700 stores across the Middle East and Africa. One source mentioned that this deal for Dubai Holding is the latest in a series of divestments by the state-owned company, which aims to reinvest returns into new ventures. Last year, the company sold its 50 percent stake in Dubai Creek Harbor to its partner Emaar Properties for 7.5 billion dirhams (2.04 billion dollars). It also sold a 12.5 percent stake in Tecom Group, which operates business parks in Dubai, last year through an IPO that raised 1.7 billion dirhams. Dubai Holding owns the world's largest observation wheel (Ain Dubai) and the Jumeirah hotel group.
