Private Equity - Industry - MEA Market, Share and Trends 2023-2028

Summary of Private Equity

The private equity (PE) industry in the Middle East and Africa represents an emerging growth story, as investor interest expands across a region undergoing major economic development. While still at an early stage compared to other markets, total assets under management (AUM) focused on MEA has grown at a 30%+ CAGR since 2010 to approach $50 billion in 2022.

Based on our estimates, we can say that the regional Middle-east and Africa’s Private Equity industry is forecasted to be a $ 653.3 billion industry in 2029 from $ 430 billion in 2023 with a CAGR of 7.08 %.

Key growth drivers include the regions’ strong GDP outlook, youthful demographics, expanding middle class consumer bases and significant infrastructure building needs – all set against a backdrop of abundant capital in the Gulf states seeking deployment.

Governments have prioritized economic diversification initiatives and foreign direct investment campaigns. Privatization programs for state-owned enterprises across sectors like transportation, energy, and telecoms are also opening up deal pipelines for PE firms.

The UAE and Saudi Arabia hold the most mature PE markets currently— together representing over 70% of the regional capital deployed. However— Egypt, Nigeria, Kenya, Turkey and broader plays across emerging Africa and the Levant are all seeing rising traction.

While MEA PE still accounts for less than 2% of global industry AUM, the pace of growth is outpacing other regions. With massive addressable markets, undersupplied capital needs, and early-stage modernization journeys, the runway for expansion over the next decade remains substantial.

Recent Trends and Insights

MEA-focused PE fundraising has grown at a 40% CAGR since 2010. Total dry powder earmarked for the region now exceeds $35 billion and is providing fuel for future deals. Government-backed entities and sovereign wealth funds have become the cornerstone LPs anchoring PE funds focused on the Middle East and Africa.

Large privatization programs across the Gulf states, Turkey, and Egypt are expanding investible pipelines for PE firms across transportation, energy, fintech, and consumer sectors. Deal values have set new records annually since 2019, as investors tap into underpenetrated African markets with abundant greenfield opportunities and favorable demographics.

Government initiatives to foster technology and start-up ecosystems have enabled early-stage tech investing, predominantly focused on e-commerce, fintech, agritech, and healthtech. Limited partners have looked to boost net returns via co-investments alongside fund commitments. Strategic co-investing also strengthens LP-GP alignment in the maturing region.

PE exit activity has gained momentum in tandem with rising investment volumes – via both domestic IPOs and sales to corporates and international strategics.

Product Insights

Given the nascency of markets and developing regulatory frameworks, minority stake growth equity has accounted for the majority of MEA PE to date that is led by tech and consumer deals.

 As markets mature – PE control buyouts are expanding, particularly in the UAE, Saudi Arabia, Turkey and Egypt. Privatizations and family successions are driving deal flow. Significant greenfield infrastructure development needs across transport, sustainable energy, water management and digital infrastructure provide a deep addressable market for PE capital.

The GCC commercial and residential property ecosystem continues to develop, with PE firms moving beyond an opportunistic approach to value-added investing. Distressed opportunities could arise across the region depending on macroeconomic fluctuations and underlying sector dynamics in areas like retail, hospitality, commodities and shipping.

Private credit strategies are still early stage but expected to expand given the largely bank-dominated debt financing landscape and a rising cohort of non-bank lenders. While retail investor access to PE is expanding globally, it remains muted across MEA given regulatory constraints. However— democratization is a long-term goal.

Nigeria – is having the largest African economy by GDP after South Africa. Abundant natural resources, youthful population. Fintech ecosystem leading wider digital transformation. Privatization campaigns expected across telecoms, oil and gas, airports.

Key Companies

Some major players within this vast domain of industry are

• Saint Capital Fund
• BluePeak Private Capital
• Sigma Capital Holding
• Vantage Capital
• Al Muhaidib Group
• Al Borg Medical Laboratories
• Al Yusr Industrial Contracting Company
• S&S Truck Parts
• Mubadala Investment Company
• Hyaat Group

Regional Analysis

United Arab Emirates – is MEA’s most mature PE market centered in Dubai and Abu Dhabi. Privatizations in telecoms, transportation providing pipeline. Technology, healthcare, consumer sectors seeing tech-enabled deals. Tourism, logistics and manufacturing also see investor interest

Vision 2030 reform agenda opening up deal flow. Sovereign PIF the most influential LP and co-investor. Fintech, healthcare, consumer internet top sectors amid youth boom. Infrastructure and real estate also benefiting from economic overhaul

Turkey – displayes itself as a strategic geography drives PE interest across wider region. Young demographics and consumer orientation attractive. Privatizations across gaming, banking and other industries. Macro volatility poses risk though creates opportunities

Egypt is the second largest African PE market after South Africa. Economic reform agenda supports political stabilization. Fintech, consumer internet, healthcare top emerging sectors. And Infrastructure development needs massive

Fast growing region as PE models expand beyond South Africa. West Africa, East Africa, Francophone Africa represent huge untapped potential. Sectors include fintech, agritech, healthcare, consumer, infrastructure.

Market Segmentation

By Type:

• Buyout funds
• Venture/growth capital
• Distressed/turnaround
• Mezzanine
• Infrastructure

By End User:

• Institutional investors (pension funds, sovereign wealth funds, endowments)
• High-net-worth individuals
• Corporations (corporate venture arms)

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Country:

• Saudi Arabia
• Iran
• United Arab Emirates
• Israel
• Egypt
• Iraq
• Qatar

Our Methodology

We have offered a well-founded review of the Middle-east and Africa’s  regional Private Equity Industry market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.