Thu Sep 19 08:31:10 UTC 2024: ## Starbucks Middle East Franchise Sale Put on Hold Amidst Boycotts and Geopolitical Unrest

**Dubai/London:** The sale of a stake in the Starbucks franchise operating in the Middle East, North Africa, and central Asia, owned by Kuwait’s AlShaya Group, has been put on hold.

The decision comes amidst ongoing boycotts and geopolitical unrest in the region, which have impacted the franchise’s performance and made it difficult for potential bidders to accurately assess the business’ value.

AlShaya Group, known for its private retail operations, had been exploring the sale of a 30% minority stake in the franchise, dubbed “Project Emerald.” However, they are reportedly in no hurry to sell, with talks potentially resuming next year if conditions improve.

The franchise, which operates around 2,000 outlets in 13 countries, faced challenges earlier this year following the Israel-Hamas war. Consumer boycotts and protests calling for Starbucks to take a stance on the conflict led to significant business disruption. This, along with previous layoffs, has further impacted the franchise’s valuation, which was previously estimated to be between $4 billion and $5 billion.

Previous reports indicated interest from U.S. private equity firm Apollo Global Management Inc and Saudi Arabia’s Public Investment Fund (PIF) in acquiring a stake.

While Starbucks has expressed commitment to its international growth, the current pause in the sale process highlights the challenges facing businesses operating in a volatile geopolitical environment.

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