The Middle East and North Africa (MENA) region continues to favor private equity as a leading alternative asset class, but changes in 2008 have led many to believe that 2009 will bring new industry dynamics, with a host of investment and regulatory movements sure to make private equity firms more competitive. Time to invest Although regional liquidity levels rose in 2008, commensurate with the price of oil, capital has not gone to new funds. In 2007, regional private equity houses raised a total of 22 new funds totaling assets under management of a little over $5 billion. During the first half of 2008, however, funds focused on MENA investments rose only $1.14 billion, which is a slight drop on first half 2007 figures of $1.81 billion and consistent with similarly small drops in other developing markets, such as Central and Eastern Europe and Latin America. The slowing growth in fundraising
