UAE, Saudi lead MENA’s private equity investments

ded copy


Dubai / WAM

The United Arab Emirates and Saudi Arabia have the main bulk of private equity (PE)
investments in the Middle East and North Africa (MENA) in 2014 at more than 75 percent by value, according to an international report.
Emerging only in the late 1990s, MENA’s PE market is still at its infancy compared to other well-established ones, but many PE players are showing strong interest in the region, said the report, issued by the Orient Planet Group (OPG) under the title “Challenges and Opportunities: Reinforcing the Private Equity Market in the MENA Region”, on the sidelines of the inaugural Private Equity Forum & Awards 2017 on Wednesday, in Dubai.
PE investors prefer the UAE, Morocco, and the Kingdom of Saudi Arabia where they expect to get high returns and an opportunity to diversify, while Egypt, Jordan, Tunisia and Lebanon carved a niche after accounting for 10 or more deals in 2015, added the report, a copy of which has been obtained by Emirates News Agency (WAM.)
The MENA’s PE industry is poised for significant growth led by the GCC’s six member states in light of intensified MENA-wide economic diversification and development efforts, added the report ,
The report investigated some promising factors driving the regional PE industry as well as major challenges hindering it from reaching its full potential in hopes of attracting substantial PE funding for homegrown markets and away from its historical role as a source capital for foreign
The International Monetary Fund, according to the report, has projected that MENA will become the third fastest-growing region in the world over the next five years.
Nidal Abou Zaki, Managing Director, OPG, said, “A number of factors are making the region highly attractive to PE investors, including the regional governments’ strong initiatives to strengthen local entrepreneurship and promote small- and medium-sized enterprises. In addition, the region’s young demographics, increasing wealth, and recent important economic reforms are making it highly attractive to PE investors whose investments can help drive development and advance MENA’s position in the global stage.”

Leave a Reply

Send this to a friend