Middle East and Africa Private Equity Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 7.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Middle East and Africa Private Equity Market Analysis
Private equity fund (PE Fund) investments in promoting private sector development in emerging markets were challenged by the COVID-19 pandemic. Around 88 percent private equity, deal-making activity in the Middle East and Africa (MEA) decreased in the second half of 2020.
The Middle East and North Africa (MENA) is a region that has long been in the sights of the international private equity community. As an emerging market, it offers superior economic growth rates and, there is now a demand amongst companies in the region for investment and expansion. National governments are rapidly becoming aware of the economic benefits private equity can bring, not just as providers of capital but also as importers of good business practices. Geographically situated at the heart of some of the world's most important trade routes, the countries comprising the MENA region are culturally, politically, and economically diverse.
Investing in the Middle East and Africa presents both familiar and unfamiliar challenges. In addition to the familiar issues around assessing financial performance and prospects, structuring to optimize tax treatment, ensuring appropriate levels of control and facilitating an exit, there are also a number of additional, unfamiliar issues to be considered. Bilateral investment treaties (BIT) may be available to protect investments against expropriation without adequate compensation. There are over 2,200 investment treaties in force, and they can provide for international arbitration of treaty claims as an alternative to local courts. Traditionally most private equity investments in Africa have involved minority investments in young and emerging companies, as opposed to majority investments or in mature businesses. Minority investments naturally give rise to their own challenges, particularly in relation to control issues (or rather the lack of control) and difficulty of exit.
Middle East and Africa Private Equity Market Trends
This section covers the major market trends shaping the MEA Private Equity Market according to our research experts:
Increase in Capital Deployment in Africa
The African PE industry has become increasingly complex and diverse, with the arrival of global institutional investors in recent years paving the way for some of the world's largest firms to enter the market. While deal volumes have maintained an upward trend, their value has gradually decreased, suggesting growing investor interest but smaller deal sizes. Moreover, in addition to consumer-driven industries, PE fund managers have diversified their strategies to invest across a variety of sectors such as IT, renewable energy, infrastructure and real estate.
The continent's growing consumer class played a crucial role in driving much of this change, as did government efforts to move beyond commodity-based growth. This encouraged greater private sector participation and fostered expansion in a wide range of industries. Africa is among the most talked about parts of the world for private equity firms looking to invest in emerging markets. Despite the challenges to investing in the various regions within Africa, many economic indicators are pointing in the right direction and some traditional market barriers are being broken down.
New Opportunities and High Returns on Capital in Middle East
Domestic opportunities are one of the major focuses of the Middle East's growing private equity sector - as well as the increasing return or retention of capital within the region. Capital generated from the higher oil prices and economic growth within the region stays within the region rather than going abroad. That will result in more liquidity.
The Middle East has always been a very significant investor in the asset class and has been a huge source of capital for GPs in Europe, North America, and to a lesser extent, Asia. A lot of investment is really driven by the attractiveness of potential returns as certain markets open. The US and Europe are very mature in terms of private equity, their pricing is getting competitive. Asia and the Middle East probably still offer opportunities where there is good pricing potential, information asymmetry, you can get involved in potential transactions very early on and find exclusivity.
Middle East and Africa Private Equity Industry Overview
Middle East and Africa Private Equity Market is competitive, with the presence of both international and domestic players. The market studied presents opportunities for growth during the period, which is expected to further drive the market competition. With multiple players holding significant shares, the market studied is competitive.
Middle East and Africa Private Equity Market Leaders
-
Investcorp
-
Mubadala
-
Hyaat Group
-
Olive Rock Partners
-
Colliers International Middle East
-
Ascension Capital Partners
-
Saint Capital Fund
-
BluePeak Private Capital
-
Sigma Capital Holding
-
Vantage Capital
*Disclaimer: Major Players sorted in no particular order
Middle East and Africa Private Equity Market News
- In Jan 2022, Colliers, a services and investment management firm, improved its footprint in the Middle East and North Africa (MENA) with Eltizam Asset Management Group's (Eltizam) acquisition of Falcon Investments LLC, an associate partner that has been doing business in the region as Colliers since 1995. Colliers benefits from the competence in core real estate transactions and advisory services offered by Eltizam and the asset management services.
- In Jan 2022, BluePeak Private Capital an asset management firm announced its investment in Grit Real Estate Income Group Limited (Grit), a breakthrough pan-African real estate company. The investment o Grit's development plan to boost industrial and health facilities in East Africa improving access to essential goods and quality healthcare.
Middle East and Africa Private Equity Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and market definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
-
4.4 Industry Attractiveness - Porters' Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Insights on Various Regulatory Trends Shaping Private Equity Market in Middle East And Africa
- 4.6 Insights on Impact of Technology and Innovation in Operation in Private Equity Market
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
-
5.1 By Industry / Sector
- 5.1.1 Utilities
- 5.1.2 Oil & Gas
- 5.1.3 Financials
- 5.1.4 Technology
- 5.1.5 Healthcare
- 5.1.6 Consumer Goods & Services
- 5.1.7 Others
-
5.2 By Investment Type
- 5.2.1 Venture Capital
- 5.2.2 Growth
- 5.2.3 Buyout
- 5.2.4 Others
-
5.3 By Country
- 5.3.1 Saudi Arabia
- 5.3.2 UAE
- 5.3.3 Qatar
- 5.3.4 Kuwait
- 5.3.5 South Africa
- 5.3.6 Rest Of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
-
6.2 Company Profiles
- 6.2.1 Investcorp
- 6.2.2 Mubadala
- 6.2.3 Hyaat Group
- 6.2.4 Olive Rock Partners
- 6.2.5 Colliers International Middle East
- 6.2.6 Ascension Capital Partners
- 6.2.7 Saint Capital Fund
- 6.2.8 BluePeak Private Capital
- 6.2.9 Sigma Capital Holding
- 6.2.10 Vantage Capital*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Middle East and Africa Private Equity Industry Segmentation
This report aims to provide a detailed analysis of the Middle East and Africa private equity market. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Moreover, it analyses the key players and the competitive landscape in the Middle East and Africa's private equity market. The Middle East and Africa private equity market is segmented by industry / sector (utilities, oil & gas, financials, technology, healthcare, consumer goods & services, and others), By investment type (venture capital, growth, buyout, and others), by country (Saudi Arabia, UAE, Qatar, Kuwait, South Africa, and rest of the Middle East and Africa).
| By Industry / Sector | Utilities |
| Oil & Gas | |
| Financials | |
| Technology | |
| Healthcare | |
| Consumer Goods & Services | |
| Others | |
| By Investment Type | Venture Capital |
| Growth | |
| Buyout | |
| Others | |
| By Country | Saudi Arabia |
| UAE | |
| Qatar | |
| Kuwait | |
| South Africa | |
| Rest Of Middle East and Africa |
Middle East and Africa Private Equity Market Research FAQs
What is the current Middle East and Africa Private Equity Market size?
The Middle East and Africa Private Equity Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in Middle East and Africa Private Equity Market?
Investcorp, Mubadala, Hyaat Group, Olive Rock Partners, Colliers International Middle East, Ascension Capital Partners, Saint Capital Fund, BluePeak Private Capital, Sigma Capital Holding and Vantage Capital are the major companies operating in the Middle East and Africa Private Equity Market.
What years does this Middle East and Africa Private Equity Market cover?
The report covers the Middle East and Africa Private Equity Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Middle East and Africa Private Equity Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
How is the MEA Private Equity Market Segmented?
MEA Private Equity Market Segmented by a) Industry/Sector: Utilities, Oil and Gas, Financials, Technology, Healthcare, Consumer Goods and Services b) Investment Type: Venture Capital and Buyout
MEA Private Equity Industry Report
The Middle East private equity market is experiencing significant growth, driven by various factors including economic conditions, technological advancements, and regulatory frameworks. Key market segments include buyout, venture capital (VCs), real estate, infrastructure, and others. The market is characterized by a dynamic ecosystem where economic trends, technological innovations, and regulatory shifts collectively propel its evolution. The private equity industry in the Middle East plays a crucial role in fostering entrepreneurship, driving operational efficiency, and contributing to economic growth. The market is segmented by fund type, with detailed analysis provided for each segment. The private equity Middle East market size is poised for substantial expansion, driven by innovation, collaboration, and evolving market dynamics. The private equity market in the Middle East presents significant opportunities for investors, making it an attractive destination for capital deployment and strategic investments. Middle East and Africa Private Equity companies are actively participating in this growth, further enhancing the market's potential and attractiveness. Statistics for the MEA Private Equity market share, size, and revenue growth rate are available in Mordor Intelligence™ Industry Reports. MEA Private Equity analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
