Dubai: The general economic uncertainty is hindering private equity deals in the region, financial industry executives feel.
Frederic Sicre, executive director at Abraaj Capital, said the expectation last year was that the first quarter of 2009 would provide a better picture of the market but "we are not seeing any clearer."
Although valuations of potential assets are down in the changed economic environment, companies are waiting to see more stability.
"It is a wait and watch [situation]," said Vikas Papriwal, a partner at audit firm KPMG's Private Equity and Sovereign Wealth Funds practice.
DIFC chief economist Nasser Saidi believes that "we are in a period of a great deal of uncertainty," but feels that the current tight credit conditions should encourage private equity players to work with companies looking for funding. In the global economic turmoil, the Arab region and surrounding countries have also become more attractive to private equity firms.
