Drivers of Value Creation in Private Equity in the Mena Region

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Table of Contents

CHAPTER 02: LITERATURE REVIEWIII

Asset Pricesiii

Transactionsiv

Medium-Sized Companiesiv

Conditions of the Mena Regionv

Growth Driver for SMEvii

Magnitude of Capital Investment in the Mena Regionvii

Effect of Arab Spring on Private Equityviii

Prospects for Capital Investmentix

High Demand for Private Equityix

Mena Economic Outlookx

Private Equity Funds in the Middle Eastxi

Family Companies and Subsidiariesxi

Increasing Regional Tradexii

REFERENCEXIV

CHAPTER 02: LITERATURE REVIEW

The private equity industry in the MENA region, faced challenges after a period of global financial crisis, which has affected all economic activities globally, but the private equity investment firms in the MENA region currently manages funds worth ? 30 billion dollars. The private equity industry in the MENA region is witnessing excellent opportunities in the medium and long term in the region, expecting to achieve sector growth of between six ? 30% and ? 40% over the next ten years.



Asset Prices

Despite the promising future opportunities for the equity sector, however, the institutions of private property are still facing some difficulties in the issue of liquidity and funding after a period of global financial crisis that made the banks more conservative. The decline of asset prices in the region by the end of the crisis action one way or another to attract a greater number of outside investors towards private equity investment, noting that the financial crisis does not only affect negatively on the sector, but have had positive aspects, where the crisis illustrated the weakness of the management of some existing companies, which gives more opportunities for private property.

Institutions of private property must adapt to the consequences created by the global financial crisis that affected the sector in most countries of the region, pointing to the existence of the challenges facing the industry in the short term, but the presence of the average age in a small area and a large number of the population in addition to significant capital in a number of countries in the region would serve the private equity industry's growth over the long term. There is a significant development in the industry will be led by Saudi Arabia, UAE and Egypt after the completion of the changes made therein, noting that those countries and others such as Qatar is pouring several investments in the sectors of existing infrastructure, which would attract investors and investments and enhance the industry of private property in those countries in particular and the MENA region in general.

Transactions

The first quarter of this year saw a slowdown in the movement of private equity deals, but it is expected to be better for the rest of the year for a number of deals. Events in the MENA region would be positive in the long run, as the countries that were suffering from the economic climate is bad, such as Egypt, will reform their economic environment for the better, which will contribute significantly to the growth of the private equity sector, as well as editing limitations of existing laws which will become the top priority of the new ...