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DUBAI, May 15 (Reuters) – Hong Kong-based SC Lowy, which invests in high-yield and distressed credit, plans to open an office in the UAE capital Abu Dhabi, its new regional head said on Monday, in response to growing tensions in the Middle East. opportunities for growth.
“We are in the final stages of final regulatory approval to open an office in Abu Dhabi Global Market (ADGM),” Berkay Oncel told Reuters in an interview, referring to the emirate’s financial hub.
He added that the company decided to choose Abu Dhabi, although it was also considering the financial hub of Dubai, as Abu Dhabi focuses on the alternative credit market.
Earlier this month, ADGM published a regulatory framework to allow private credit funds.
SC Lowy is also exploring the creation of a private credit fund dedicated to the Middle East, North Africa and Turkey, which could target between $200 million and $500 million, Oncel said. He added that negotiations were at an early stage.
SC Lowy will initially have three or four staff in Abu Dhabi, but that number could grow to more than 10 if the fund launches.
The firm has invested close to $500 million in the region over the past decade and sees the biggest opportunities in the UAE, Saudi Arabia and Turkey.
In January, US hedge fund Davidson Kempner said funds it advised bought a $1.14 billion portfolio of bad loans from Abu Dhabi Commercial Bank.
“We know there are at least four or five similar portfolios under discussion in the market right now,” Oncel said.
In Saudi Arabia, Oncel sees the financing needs of mid-sized companies as a key opportunity as local banks become more active in lending to large government-led projects.
In Turkey, exporting companies that cannot easily obtain dollar financing from local banks have direct loan opportunities, Oncel said.
Reporting by Yousef Saba Editing by Mark Potter
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