DUBAI
Gulf Capital said on Tuesday it has injected Dh500 million in regional internet and eCommerce companies, making it one of the largest technology investors in the region.
The private equity firm has invested in the leading regional online B2B (business-to-business) hospitality platform, the largest Middle Eastern auction platform and the leading online sport-based products and supplements marketplace, the company said in an emailed statement.
“The technology scene is rapidly evolving in the GCC, and we are seeing the rise of a number of regional players that are becoming market leaders on both the regional and global fronts. Gulf Capital is actively backing and investing in these market leaders and helping them graduate to the next level,” stated Dr Karim El Solh, Chief Executive Officer of Gulf Capital. “We forecast a substantial increase in technology investments in the GCC and significant returns to be generated for the early backers of these technology companies.”
Gulf Capital’s first technology investment was in Destination of the Word, which has become one of the largest online accommodation wholesalers in the world, with footprints extending from North America to the Asia Pacific. Gulf Capital has also invested in two e-commerce platforms, namely Sporter.com, the sport-based products and supplements marketplace and Emirates Auction, said to be the largest auction site in the Middle East.
Trillion dollar in size:
According to Boston Consulting Group (BCG) the digital economy, which contributed $2.3 trillion to GDP (gross domestic product) in the G20 in 2010, and is estimated at more than $4 trillion in 2016, is growing at 10 per cent a year; significantly faster than the global economy as a whole.
The UAE, Saudi Arabia, Egypt, Jordan and Lebanon remain the leading regional hubs for tech start-ups and hence are attracting significant early stage and private equity investments.
“Growth capital investors are closely looking at local technology firms which can disrupt industries, scale up and become leading regional and global players. Given that it is still early days, the prospects for regional eCommerce and technology companies are very promising,” El Solh said.
