DUBAI/LONDON, Sept 19 (Reuters) - The sale of a stake in

the Middle East, North Africa and central Asia Starbucks

franchise operated by Kuwait's AlShaya Group is on

hold, two people with knowledge of the process said.

Boycotts and geopolitical unrest in the region continue to

impact the franchise, hindering bidders' ability to value the

business, and AlShaya is not in a rush to sell, one of the

people said, speaking on condition of anonymity because the

process is private.

The privately-owned retailer has been looking to sell a

minority stake of about 30% in the business, in a process dubbed

"Project Emerald", Reuters reported previously. The talks could

restart next year if conditions improve, a second person said.

AlShaya Group declined to comment. Starbucks said "it does

not comment on rumors or speculation".

The sale has drawn interest from U.S private equity firm

Apollo Global Management Inc ( APO ) as well as Saudi Arabia's

sovereign wealth fund, the Public Investment Fund (PIF), Reuters

has previously reported.

Starbucks said in January that the Israel-Hamas war had hurt

its business in the region as some consumers launched protests

and boycott campaigns asking the company to take a stance on the

issue. However, it added it remained committed to its growth

ambitions internationally.

Reuters reported in March that AlShaya Group, which owns the

rights to operate Starbucks in the Middle East, planned to lay

off over 2,000 people as its business was hobbled by consumer

boycotts linked to the Gaza war.

The franchise operates around 2,000 outlets in 13 countries,

across the Middle East and North Africa, Kazakhstan and

Azerbaijan. The unit was valued at between $4 billion and $5

billion in 2022, Reuters reported previously, before it exited

Russia.

A sale of the stake would increase the investor base of the

business that has been held by the AlShaya family since 1999.