Private Equity Makes Inroads into the MENA Region

ENAR

With the rapidly growing economies of the Middle East and North Africa (MENA) requiring greater levels of investment, an increasing number of private equity firms are appearing in the region. Consider just how quickly the region’s private equity industry has evolved. Five years ago, only a handful of private equity firms targeted the MENA region. Today, over 75 firms, with approximately $10 billion in funds announced or raised in 2006 alone, are active throughout the region. In mature markets, such as North America and Europe , private equity firms have proven to be effective active owners. Companies that have been acquired by private equity firms have achieved, on average, better risk-adjusted returns than publicly-owned companies in their respective industries. Accordingly, one would expect the development of the MENA private equity industry to have a positive impact. The role private equity firms have in elevating business performance is particularly important as