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Abu Dhabi: The value of investment transactions for global private equity funds in the UAE amounted to $2.7 billion last year, participants at a private equity forum said in the capital on Monday.
The growing role of private equity in developing the country's Gross Domestic Production.
"Family businesses are beginning to realise the need for private equity to expand the business and to address succession issues," Karim Al Solh, chief executive officer of Gulf Capital said.
"Now, there is a broader acceptance of private equity, as we have seen the increasing number of private equity backed initial public offerings (IPOs) such as Aldar Properties, Tamweel, and Aramex," he added.
Nevertheless, some challenges facing private equity funds in the country still exist including the immaturity of the market, management, and the exit challenge.
Consistent growth
"This is somehow changing gradually, as good projects attract capital whether these are listed or not because of the existence of high net-worth individuals," Al Solh said.
"There are 128 private equity funds in the region today where the per capita's share of GDP is growing consistently from $11,000 to $22,000 in the past five years, amounting to $80,000 in a country like Qatar," he added.
Such growing number of private equity funds opens the door for competition, although participants agreed that although the number is high in absolute terms, yet as a percentage of the GDP, their share does not exceed 2 per cent, compared to a global average of 6 per cent.
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