Dubai Holding, the investment vehicle of the emirate's ruler, agreed to buy a minority stake in Lebanese fashion retailer Azadea Group, Bloomberg reported on Monday, citing sources.

The two companies reached an initial agreement on the transaction last week, the report said, citing sources, adding that the stake purchase would value the Beirut, Lebanon based Azadea at more than $1 billion.

Azadea has franchises across the Middle East and North Africa for brands in fashion, food, home furnishings, multimedia and sporting goods, including Gap GPS.N , Inditex's ITX.MC Zara and Virgin Megastore.

Dubai Holding and Azadea did not immediately respond to Reuters request for comment.

(Reporting by Shubham Kalia in Bengaluru; Editing by Shailesh Kuber) ((; within U.S. +1 646 223 9687, outside U.S. +91 80 6749 9687; Reuters Messaging: