Private equity firm KKR & Co is in competition with the Abraaj Group for the purchase of the majority shareholdings in Kudu, the Saudi Arabian restaurant business. This was confirmed by two anonymous sources familiar with the transaction.

Abraaj is the largest buyout firm in the Middle East region. The firm together with KKR had reached the second round of the bidding for the acquisition of 60% of the fast food chain. The sale of the business is being managed by HSBC Holdings Plc's Saudi Arabian unit. The fast food chain operates 200 outlets in the Gulf region.

Two of the four partners in Kudu are selling off their shareholdings at an expected amount between SAR1.5 billion and SAR2 billion.

The incomes in Saudi Arabia are increasing while the government is executing a USD500 billion investment plan to revitalize industries and infrastructure. One of the clear signs of the positive outlook is the Carlyle Group's purchase of 42% shareholdings in Alamar Foods last 2011. Alamar Foods operates Domino's Pizza and Wendy's restaurants in Saudi Arabia as well as a food processing plant.