Barclays Sees Wealth Funds, Bank Deals Driving Mideast M&A - Bloomberg

Barclays Sees Wealth Funds, Bank Deals Driving Mideast M&A - Bloomberg:

"Barclays Plc sees bank mergers and sovereign wealth funds’ technology investments driving Middle East dealmaking this year as the region adapts to low oil prices.

“The type of deals sovereign wealth funds are looking for has changed over the years, but they continue to be active,” Makram Azar, chairman for the bank in the Middle East and North Africa, said in an interview in London. Funds are looking at opportunities in new areas, such as technology, as well as traditional sectors, such as real estate and infrastructure where they can get good yields, he said.

Sovereign wealth funds in Gulf Arab states are seeking new sources of income to lessen their reliance on volatile oil markets. Since last year, Saudi Arabia’s Public Investment Fund has funneled about $50 billion of the kingdom’s reserves into investments abroad, almost all of it into technology. It is said to be committing as much as $45 billion to partner with SoftBank Group Corp. to set up a new $100 billion vehicle to invest in global technology. The fund also invested $3.5 billion in Uber Technologies Inc. last June.

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