MENA private capital investments seen rebounding this year from shock of Abraaj collapse

MENA private capital investments seen rebounding this year from shock of Abraaj collapse

The collapse of Abraaj Capital seemed to have cast a shadow on private capital investments in the Middle East and North Africa (MENA) region, with private capital assets under management falling by about 28 percent to $253 billion last year from $349bn in 2019, latest research shows.

Investors are, however, quickly returning to the region with more vigour, with capital assets under management expected to see a rise of over 11 percent on a compounded annual growth rate (CAGR) by 2025, the report by EMA Partners, a leading global executive search and advisory firm, said.

Fintech, e-grocery, ed-tech, and healthcare are projected to attract significant capital in the short-term, leading to a surge in hiring of top talent in these sectors, the report on investments and talent across sectors in MENA revealed.

“Policymakers have made rapid strides in improving the regulatory framework following the collapse of Abraaj Capital. Reflecting the improved regulatory framework, investment managers are seeing an encouraging number of breakthroughs in their effort to draw foreign and organic capital to the Middle East,” the report said.

“The estimated forecast is a reflection of the restoration of investor confidence in the region,” Amarjeet Dutta, partner, EMA Partners UAE, told Arabian Business.

Amarjeet Dutta, partner, EMA