Nasdaq's getting a lot of the SPAC dollars - and it's been sizeable. More than $73 billion was raised via SPACs last year. Image Credit: Bloomberg

Dubai: It’s raining SPACs…

Arrow Capital, an advisory firm with offices in Dubai and Mauritius, has closed a $240 million SPAC that, it says, will open up tech investment opportunities in the US for Gulf investors.

Done in alliance with US-based Tribe Capital, a VC firm, the new SPAC – or Special Purpose Acquisition Company – is trading as ‘Tribe Capital Growth Corp I’ on Nasdaq.

It was last week that the SPAC way – which offers market listings other than through an IPO – was used to get Abu Dhabi based music streaming company Anghami to list on Nasdaq, becoming the first Middle East tech venture to do so. (Anghami’s formal listing will happen in June.)


The value 219 SPACs raised from US markets during 2020


Abu Dhabi’s Mubadala Capital and Saudi Arabia’s Public Investment Fund too were involved in SPAC-related investments earlier this year. It has proved to be a bumper 12 months and more for such investment vehicles, which uses a shell company to raise funds from the public markets. These funds are used to acquire private companies. (SPACs are also known as ‘blank-check’ companies.)

According to Rohit Nanani, Arrow Capital’s CEO, “In Tribe, we have a trusted partner right at the heart of Silicon Valley’s innovative technology ecosystem. We are very excited to be able to extend their expertise and insights to our network of investors in the region, delivering greater access to fast growing companies and much-needed diversification.”

Rohit Nanani, Arrow Capital CEO
Rohit Nanani, Arrow Capital CEO, expects to rope in Gulf-based investors to come on board for US tech investments. Image Credit: Supplied