Saudi PIF Close to Buying Stake in Starbucks Middle East

Starbucks coffee shops are popular in the Gulf region and the Middle East. (Asharq Al-Awsat)
Starbucks coffee shops are popular in the Gulf region and the Middle East. (Asharq Al-Awsat)
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Saudi PIF Close to Buying Stake in Starbucks Middle East

Starbucks coffee shops are popular in the Gulf region and the Middle East. (Asharq Al-Awsat)
Starbucks coffee shops are popular in the Gulf region and the Middle East. (Asharq Al-Awsat)

The Saudi Public Investment Fund (PIF) has been shortlisted to buy a stake in the Middle East, North Africa, and central Asia Starbucks franchise held by Alshaya Group, revealed sources.

The Starbucks franchise has several hundred outlets in 14 countries across the Middle East, Russia, and central Asia.

Last year, Kuwait-based Alshaya Group, the region's leading brand franchise owner, hired JPMorgan to sell a significant minority stake in the business.

The sources said it could sell up to 30 percent, generating $4 billion-$5 billion.

The PIF, which manages over $600 billion of assets, Alshaya, and JPMorgan declined to comment to Reuters.

The PIF is among the bidders that have made it to the next round as the sale process nears its final stages, the source said.

Several private equity bidders were also in the race, including CVC Capital Partners and Brookfield, but it was not immediately clear if they had been shortlisted.

The two sources said that Abu Dhabi state fund Mubadala Investment Co and Abu Dhabi state holding fund ADQ are no longer in the race.

Mubadala declined to comment, while ADQ did not immediately respond to a request for comment.

One source said funds raised could be used towards other businesses Alshaya owns and that the company's valuation is attractive, making the sale of a stake compelling.

The privately held Alshaya Group says it is the oldest company in Kuwait, first registered in 1890. It runs franchises including H&M, Mothercare, Debenhams, American Eagle Outfitters, and Victoria's Secret.



US Energy Secretary Says Riyadh and Washington to Sign Civil Nuclear Agreement

US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
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US Energy Secretary Says Riyadh and Washington to Sign Civil Nuclear Agreement

US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili

The United States and Saudi Arabia will sign a preliminary agreement on energy cooperation and civilian nuclear technology, US Energy Secretary Chris Wright said on Sunday.

Wright spoke at a press conference in the Saudi capital Riyadh where he arrived from the United Arab Emirates on Saturday as part of a regional tour that will also take him to Qatar.

His visit comes amid world economic turmoil over the tariffs imposed by US President Donald Trump. But Wright said that these tariffs don’t seek to restrict trade, rather they aim for fair and reciprocal trade.

His visit also comes ahead of an expected visit by Trump to the Kingdom, the UAE and Qatar in May to consolidate relations.

The US Energy Secretary told journalists at the Saudi Energy Ministry that Riyadh and Washington were on a "pathway" to reaching an agreement to work together to better develop energy resources and energy infrastructure, in addition to mining cooperation, civilian nuclear technology and energy production.

Wright said further details over a memorandum detailing the energy cooperation between Riyadh and Washington would come later this year.

Saudi Minister of Energy Prince Abdulaziz bin Salman announced last September that the Kingdom is working to develop peaceful uses for nuclear energy across various fields.

In his press conference on Sunday, Wright discussed the meetings he has held in Riyadh. There have “been very wide ranging dialogues for a day and a half now and they're going to continue. We've talked about energy in all aspects of energy. We've talked about mining, critical materials. We've talked about processing in industry. We've talked about climate change. We've talked about human lives and what drives their improvement and how best to achieve those ends,” he said.

On Saturday, Prince Abdulaziz met with Wright at King Abdullah Petroleum Studies and Research Center (KAPSARC) where the US official was briefed on the Center's role in the fields of energy policy research and its transitions, climate change, sustainable transportation, and consultancy services, in addition to the development of models and analytical tools that contribute to finding solutions to current challenges in the energy sector. They also discussed opportunities for cooperation in energy research, exchange of expertise, and strengthening joint research efforts.

Wright said Sunday that he believed “Saudi Arabia will be one of the leading countries in investing in the United States. I think that's a win for the Kingdom here. It's a win for the United States. And for us, most importantly, it's a win for the working class and American citizens to have better job opportunities.”

He added that the “broader objectives” of the US and Saudi Arabia “are prosperity at home and peace abroad.”

Wright also said in response to a question by Asharq Al-Awsat that tariffs are part of Trump's economic agenda.

He said Trump is trying to grow the flow of goods outside the United States into other countries while sustaining imports and engagement with countries from around the world. “So that's a way you could describe this. Fair trade, not restricted trade, just fair trade, reciprocal trade.”

He added that the United States has seen a lot of its intensive industries, particularly energy, move outside of the country and be outsourced somewhere else. “Too many Americans have seen their job opportunities shift overseas.”

“So tariffs are also a way to give a nudge and encourage investment into our country, to make products in our country, to grow economic opportunity and prosperity in America.”