Middle East and Africa Private Equity Market Size (2024 - 2029)

The private equity market in the Middle East and Africa has experienced significant challenges, particularly due to the impact of the COVID-19 pandemic, which led to a notable decline in deal-making activities. Despite these challenges, the region remains attractive to international private equity investors due to its potential for economic growth and the increasing demand for investment and expansion among local companies. National governments are recognizing the value of private equity not only as a source of capital but also for its role in enhancing business practices. The region's strategic geographical position, coupled with its cultural, political, and economic diversity, presents both familiar and unique challenges for investors. These challenges include navigating investment treaties for protection and addressing control and exit issues, particularly in the context of minority investments in emerging companies.

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Market Size of Middle East and Africa Private Equity Industry

CAGR
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

Middle East and Africa Private Equity Market Major Players

*Disclaimer: Major Players sorted in no particular order

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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 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
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Middle East and Africa Private Equity Market Size Summary

The private equity market in the Middle East and Africa is experiencing a dynamic transformation, driven by the region's strategic position and economic potential. The Middle East and North Africa (MENA) region has attracted significant attention from the global private equity community due to its superior economic growth rates and the increasing demand for investment and expansion among regional companies. National governments are recognizing the economic benefits of private equity, not only as a source of capital but also as a means to import effective business practices. The region's diverse cultural, political, and economic landscape presents both familiar and unfamiliar challenges for investors, including issues related to financial performance, tax optimization, and exit strategies. Despite these challenges, the region's growing consumer class and government initiatives to diversify beyond commodity-based growth are fostering private sector participation and expansion across various industries.

In Africa, the private equity landscape has become more complex and diverse, with global institutional investors entering the market and driving interest in a variety of sectors such as IT, renewable energy, infrastructure, and real estate. While deal volumes have increased, the value of these deals has gradually decreased, indicating a trend towards smaller deal sizes. The continent's economic indicators are improving, and traditional market barriers are being dismantled, making Africa a focal point for private equity firms seeking opportunities in emerging markets. The Middle East, with its significant capital generation from high oil prices and economic growth, is also seeing increased liquidity and domestic investment retention. The competitive private equity market in the region is characterized by the presence of both international and domestic players, with firms like Investcorp, Mubadala, and BluePeak Private Capital actively participating. Recent strategic moves, such as Colliers' acquisition of Falcon Investments and BluePeak's investment in Grit Real Estate Income Group, highlight the ongoing growth and potential within the Middle East and Africa's private equity sector.

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Middle East and Africa Private Equity Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights on Various Regulatory Trends Shaping Private Equity Market in Middle East And Africa

    6. 1.6 Insights on Impact of Technology and Innovation in Operation in Private Equity Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Industry / Sector

      1. 2.1.1 Utilities

      2. 2.1.2 Oil & Gas

      3. 2.1.3 Financials

      4. 2.1.4 Technology

      5. 2.1.5 Healthcare

      6. 2.1.6 Consumer Goods & Services

      7. 2.1.7 Others

    2. 2.2 By Investment Type

      1. 2.2.1 Venture Capital

      2. 2.2.2 Growth

      3. 2.2.3 Buyout

      4. 2.2.4 Others

    3. 2.3 By Country

      1. 2.3.1 Saudi Arabia

      2. 2.3.2 UAE

      3. 2.3.3 Qatar

      4. 2.3.4 Kuwait

      5. 2.3.5 South Africa

      6. 2.3.6 Rest Of Middle East and Africa

Middle East and Africa Private Equity Market Size FAQs

The Middle East and Africa Private Equity Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

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.

MEA Private Equity Market Report Snapshots

Private Equity Market in Middle East and Africa Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)