Starbucks Faces Boycotts and Sale Delays in Arab Countries Amid Gaza Conflict

The sale of the Starbucks subsidiary in the Middle East and North Africa (MENA), operated by the Kuwaiti group Alshaya, is postponed. This is because the boycott campaigns launched in several Arab countries like Morocco, Egypt and Jordan prevent bidders from evaluating the company, reports Reuters citing two sources familiar with the process. Alshaya, the operator, is "not in a hurry" to sell a minority stake of 30% as part of a process called "Project Emerald," says one of the two sources.

Given the persistent obstacles, negotiations could resume next year, "if conditions improve" by then, the second source believes. The American private equity firm Apollo Global Management Inc and the Saudi sovereign wealth fund Public Investment Fund (PIF) have both expressed interest in the sale, the British news agency has meanwhile reported. This operation should allow to increase the investor base of the company owned by the AlShaya family since 1999.

Since January, the Starbucks boycott campaigns in the MENA region in response to the war against Hamas are having a negative impact on its activities. As a result, Alshaya had considered laying off 2,000 franchise employees in March. The Kuwaiti group operates nearly 2,000 Starbucks points of sale in 13 countries.