Emirati fund ADQ Holding wants to buy a controlling stake in Israeli insurance giant - Phoenix Holdings

Emirati holding ADQ wants to buy a controlling stake in Israeli insurance giant – Phoenix Holdings. The Israeli company controls most of Israel’s most significant pension funds, and Tahnoun bin Mohammed Al Nahyan, the brother of Emirati leader Mohammed bin Zayed Al Nahyan, directs the Emirati holding company aiming to purchase the stake in Phoenix.

The deal states Abu Dhabi’s sovereign wealth fund – the ADQ Developmental Holding will buy 25%-30% of the controlling stake at Pheonix, purchasing the share from US private investment firms Centerbridge Partners and Gallatin Point Capital.

In May, Abu Dhabi and Tel Aviv signed a free trade deal, with the current trade volume reaching $2.5 billion. Last year, the UAE announced a $10 billion fund to invest in the tech sector in Israel. 

However, when it comes to a controlling stake in a major Israeli insurance company, some settlers wonder whether Tel Aviv really wants to sell that kind of stake to a country that established diplomatic relations with it just 3 years ago.

By selling a controlling stake, the UAE would become a custodian of Israel’s largest pension fund, in addition to acquiring access to confidential and sensitive information of hundreds of thousands of settlers.

The deal will have to gain the approval of the Capital Market, Insurance and Savings Authority as well as the Israel Competition Authority. 

ADQ is a holding company with a broad portfolio of major enterprises, spanning key sectors of Abu Dhabi’s diversified economy. By embedding a performance culture across our portfolio of companies, we will ensure their long-term viability and sustainable financial performance.

by Nataly Kramer