RIYADH: The Middle East region is offering the highest growth potential for private capital in 2025, driven by government initiatives and sectoral reforms, according to a survey.
The Apex Group, the London-based financial solutions provider behind the poll, said asset managers surveyed private equity and venture capital as the top investment opportunities in the Middle East.
As detailed in the survey, which was carried out on the sidelines of Apex Invest Abu Dhabi in November, 39 percent of the attendees shared bright prospects for private capital deployment in the region.
A report released by Wamda this month revealed that startups in the Middle East and North Africa region raised $258 million in November, representing a 92 percent rise compared to the previous month.
“The Middle East remains an attractive proposition for asset managers. Various government initiatives, private sector reforms, and strong capital inflows are driving investment into the region’s domestic markets,” said Christiane El Habre, regional managing director, Middle East at Apex Group.
“This is creating opportunities for asset managers who can allocate capital productively and create returns via active management strategies,” she also said.
El Habre added that the survey results directly reflect the growing maturity of the asset management landscape in the Middle East region.
Despite the optimistic outlook, attendees highlighted several challenges in achieving portfolio diversification goals, with 54 percent underlining access to quality assets as a key constraint.
Some 21 percent of the attendees who took part in the survey said that market volatility is also a major factor that is impeding progress, while 13 percent opined regulatory constraints and capital-raising challenges as causes of concern.
The survey report revealed that 30 percent of the poll participants considered the Asia-Pacific region as a good destination for private capital deployment, while 22 percent preferred North America.
Europe, Africa, and South America were rated less in the survey for deployment of private capital due to various socioeconomic and geopolitical factors, said Apex Group.
Some 88 percent of the survey panelists said that public equity and venture capital firms are increasingly engaged with portfolio companies to drive returns and safeguard impact.
The Apex Invest Abu Dhabi event witnessed the participation of senior representatives from prominent regional asset managers, including Saudi Arabia’s Public Investment Fund, Mubadala Investment Co., and Abu Dhabi Investment Authority, as well as key members from family offices and investor institutions.
