The outlook for private equity firms in the Middle East is on a knife-edge as investors recoil from an already risky business environment and deals dwindle, leaving little cash for acquisitions.
While 1,004 private equity mergers and acquisitions have taken place worldwide since the start of the year, only eight of those deals took place in the Middle East, according to data from Thomson Reuters. Regional private equity firms must do more to attract investment, said Christophe de Mahieu, the director and a partner at Bain & Company, adding activity was likely to remain "subdued" this year.
The firm estimates regional private equity firms have less than US$5bn (Dh18.36bn) in available "dry powder", or cash reserves kept on hand to finance deal-making.
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