PRIVATE EQUITY
The new frontier of investment The increase in funding during the first six months of 2021 shows how private equity and venture capital investors have become confident in navigating the unprecedented challenges of the previous year and adapting to ‘the new normal’
2
020 was a year like no other for all sectors of the economy, and the private equity (PE) a n d ve nt u re c a p i ta l ( VC) market was not spared either. However, despite the challenging economic conditions, the industry has proven resilient and adaptable to the new working environment.
14
The Middle East and North Africa (MENA) PE/VC market has expanded over the last few years as regional governments look to support SMEs as part of diversification plans despite the double whammy of COVID-19 and volatile oil prices. “PE/VC firms in the MENA region are overwhelmingly optimistic going into 2021,
Banking and Finance news in the MEA market
with nearly three-quarters expecting investment activity to increase and 43% focusing on making new investments,” said S&P Global. As Middle Eastern economies emerge from the pandemic into the new normal, PE/VC firms such as Investcorp, Wamda, SHUAA Capital, Middle East Venture Capital, Saudi-based STV and Mubadala Capital Ventures lookout for deals after the economic fallout made companies cheaper to buy and scandals such as the collapse of Abraaj Capital trimmed competition. Though there is an increasing number of investment opportunities in the MENA region, the market is still in its infancy compared to other emerging markets. As such, investors are pouring money into startups in a bid to unearth the next MENA unicorn following the 2019 acquisition of Dubai-based Careem by Uber Technologies in a $3.1 billion (AED 11.38 billion) deal, Amazon’s $580 million (AED 2.13 billion) takeover of Souq.com and Anghami’s $220 million (AED 807.9 million) public offering in New York via a merger with a special purpose acquisition company (SPAC).
