Dubai's Abraaj sees good valuations, stability back

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ASSET MANAGEMENT: Abraaj has about $6bn in funds under management. (Getty Images)

Dubai-based private equity firm Abraaj Capital said on Friday valuations had become attractive and stability was returning to financial markets, although conditions would continue to be challenging in 2009.

Abraaj, which raised close to $3 billion for a buyout fund last October to make investments across the Middle East and Africa, said it would make sense for long-term investors to start investing toward the end of 2009.

"Valuations are attractive but more importantly we have a little bit more visibility or stability," Abraaj Managing Director Mustafa Abdel-Wadood told Reuters on the sidelines of the World Economic Forum at the Dead Sea in Jordan.

"Even if it's a challenging environment at least (there is) a bit more visibility than six months ago," he said.

Abraaj has about $6bn in funds under management. Among those investments is a stake in United Arab Emirates-based low-cost carrier Air Arabia.

"The one thing that is starting to emerge from all this is a lot of people agree that the freefall ... that was happening earlier, the worst of it is behind us. However the environment will continue to be challenging for 2009," Abdel-Wadood said.

"Even if you can't time the bottom of this perfectly if you're taking a five-year outlook, then it makes sense to start investing towards this year or next year." (Reuters)

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