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Israel uneasy with deal granting UAE control over pensions

Israeli experts warn against the deal, which will have Abu Dhabi government-backed ADQ Developmental Holding Company purchasing a 25% controlling part of Israel’s Phoenix insurance company.
Israelis who were allowed to enter an arena after showing proof of being fully vaccinated against the coronavirus attend a "Green Pass" concert for vaccinated seniors, organized by the municipality of Tel Aviv, Israel, Feb. 24, 2021.

Israel’s financial, regulatory and political systems have been in an uproar this week, when news emerged on Tuesday of an enormous deal being negotiated between the country’s largest insurance company, The Phoenix Group, and Abu Dhabi government-backed ADQ Developmental Holding Company.

Reportedly, a memorandum of understanding was signed, by which 25% of Phoenix to be transferred from Centerbridge Partners and Gallatin Point Capital, two American capital funds that control the insurance company, and Abu Dhabi. This means that the Emirati fund will become the biggest stakeholder of Phoenix, and effectively control the insurance company. The deal is estimated at approximately $680 million.

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