Private equity investments surge in the Middle East

Private equity and venture capital investments in the Middle East have seen significant growth in 2024, focusing on sectors beyond oil and gas. The region attracted $2.28 billion in private equity deals by September 27, surpassing the $2.16 billion recorded in the second quarter and nearly doubling the first quarter’s $1.19 billion.

Despite this increase, the annual total is projected to fall short of 2023’s $11.60 billion, largely due to ongoing military conflicts involving Israel, Palestine, Lebanon, and Iran. Israel led the region with 150 private equity-backed transactions, followed by the UAE with 70 and Saudi Arabia with 47.

The technology, media, and telecommunications sector emerged as the most active, with 124 deals totaling over $2.15 billion. Real estate followed with $752 million, while the industrial sector brought in $741 million. Notably, energy and utilities recorded only two undisclosed deals.

Among the major transactions this year, the largest was Lunate and Olayan Financing Co.’s acquisition of a 49 per cent stake in ICD Brookfield Place for $735 million. Apollo Global Management’s planned $600 million purchase of a 50 per cent stake in Vale Oman Distribution Center ranked second, and Silver Rock Group’s $325 million investment in generative AI firm Pathfinder Global took third place.

Attribution: S&P Global

Subediting: Y.Yasser