Dubai: Dubai-based private equity firm Abraaj Group is to close its office in Saudi Arabia, two sources familiar with the matter told Reuters on Tuesday.

One of the sources, a private equity-focused lawyer, said the office had become obsolete as Abraaj had people embedded within its portfolio companies, while its fundraising was done through licensed placement agents which did not require the business to have an on-the-ground presence. Abraaj declined to comment.

The closure comes at a time when many other private equity firms have been targeting Saudi, often for the first time, seeking to buy into businesses benefiting from the kingdom’s young and increasingly-wealthy population.