Middle East and North Africa

The MENA region has turned a corner. Once destined primarily for assets in the US and Europe, petrodollar wealth is increasingly being channeled into private equity investments within the Middle East. Several domestic fund managers have emerged to grow the region’s PE industry from US$4.6 billion under management in 2005 to more than US$13.4 billion in 2007. The majority of MENA funds are focused on opportunities across the GCC and North African countries, although fund managers are increasingly launching products with an expanded mandate that includes South or Southeast Asia (i.e., MENASA funds).

The majority of investments to date have been growth finance transactions under US$20 million, primarily minority stakes in family-owned enterprises. The Middle East economy remains concentrated among family firms—in the GCC, 5,000 family businesses with assets of US$500 billion account for 75% of the private sector.

Saudi Arabia and the Emirates have drawn the greatest portion of investment to date, capturing 27% and 22% of investments made over the last decade, respectively. The most promising sectors for investment have been hard and soft infrastructure, including healthcare and financial services, energy-related industries, and transportation/logistics.

Additional Resources:
EMPEA Research
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