Business | Banking
Channel Sponsor
Global equity funds in UAE attract $2.7b deals in 2007
The value of investment transactions for global private equity funds in the UAE amounted to $2.7 billion last year, participants at a private equity forum said in the capital on Monday.
- By Ahmed A. Elewa, Senior Reporter
- Published: 23:25 April 21, 2008
Abu Dhabi: The value of investment transactions for global private equity funds in the UAE amounted to $2.7 billion last year, participants at a private equity forum said in the capital on Monday.
The growing role of private equity in developing the country's Gross Domestic Production.
"Family businesses are beginning to realise the need for private equity to expand the business and to address succession issues," Karim Al Solh, chief executive officer of Gulf Capital said.
"Now, there is a broader acceptance of private equity, as we have seen the increasing number of private equity backed initial public offerings (IPOs) such as Aldar Properties, Tamweel, and Aramex," he added.
Nevertheless, some challenges facing private equity funds in the country still exist including the immaturity of the market, management, and the exit challenge.
Consistent growth
"This is somehow changing gradually, as good projects attract capital whether these are listed or not because of the existence of high net-worth individuals," Al Solh said.
"There are 128 private equity funds in the region today where the per capita's share of GDP is growing consistently from $11,000 to $22,000 in the past five years, amounting to $80,000 in a country like Qatar," he added.
Such growing number of private equity funds opens the door for competition, although participants agreed that although the number is high in absolute terms, yet as a percentage of the GDP, their share does not exceed 2 per cent, compared to a global average of 6 per cent.
Share this article
More from Banking
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
Cafe Nero's premium coffee blends
UK chain plans to open 50 outlets in region following UAE launch
-
Emirates to fly direct to Tokyo
Airline considers code-share deal with JAL after adding second destination in Japan
-
Work on world's longest sea crossing
The proposed Qatar-Bahrain causeway project is estimated to cost Dh9.9 billion
