Where the Arabs invest: yachts, fashion and bicycles, the target in the luxury segment
Huge sovereign wealth fund capital to boost takeover of Italian companies
by Luca Orlando
Pagani cars. Or the Azimut yachts. Or Colnago bicycles. If you have to find a common denominator of Arab investments in Italian manufacturing, you don't need an out-of-the-ordinary effort of imagination because the prevailing orientation, regardless of the productions involved, is unequivocally towards the high-end.
They look to established and in many cases iconic brands, clear 'shortcuts' that allow the sovereign wealth funds of Saudi Arabia, Qatar and the Arab Emirates to go and preside over niche segments in which Italia is able to excel worldwide.
Looking for example at the Saudi Arabia, Public Investment Fund, which took over 30% of the motor valley car brand Pagani in 2021, through Pauk Investment, has significant firepower, close to USD 1 trillion. The fund also took over 6% of Technogym, as well as a third of the shares of the yacht bigwig Azimut Benetti, the world's leading player in the sector.
With 163 yachts under construction, almost a quarter of the global market, for the 26th consecutive year it is the world leader in the segment of yachts over 24 metres. A partnership, the one developed with the investor, which aims to open up new development prospects for the brand in the Middle East markets as well.
Another heavy incursion into the made-in-Italy luxury sector was made by Qatar's Mayhoola fund, which took over the controlling stake in the Valentino maison, only to later come to an agreement with the Kering group.
