Makkah police arrest Yemeni and Egyptian suspects of fake Hajj campaign    400-800 year old giant coral colony discovered within AMAALA waters in the Red Sea    HR Ministry launches 'Ajeer Al-Hajj' service for seasonal work during Hajj 2025    Kafalah grants 1,900 loan guarantees worth over SR4.8 billion to SMEs during 1Q 2025    Council of Senior Scholars reaffirms performing Hajj without a permit is a sinful act    Syria thanks Saudi Arabia and Qatar for settling World Bank dues    King and Crown Prince offer condolence to Iranian president over the deadly port explosion    stc reports strong first-quarter 2025 results with 11% rise in net profit    Virgin Atlantic celebrates one month of nonstop service between London and Riyadh    Saudi Awwal Bank records SR2.1 billion net profit after zakat and income tax for 1Q25    Mahmoud Abbas appoints Hussein Al-Sheikh as PLO vice president in key succession move    Duran leads Al Nassr past Yokohama Marinos into AFC Champions League Elite semi-finals    Al Ahli cruise past Buriram into AFC Champions League Elite semi-finals    Saudi Arabia offers condolences to Iran following deadly Bandar Abbas port explosion    Saudi orchestra to perform at Sydney Opera House in May    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Average life expectancy in Saudi Arabia rises to78.8 years    Famed Philippine film star Nora Aunor dies at 71    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Private equity deals on the rise in Mideast with focus on healthcare, oil
Published in The Saudi Gazette on 07 - 07 - 2012

JEDDAH – Middle East private equity investors are increasingly seeking opportunities in defensive sectors, according to Deloitte. Education, healthcare, oil and gas services and basic consumer necessities are also among the top most sought-after industries in Private Equity (PE) in the GCC.
“The Private Equity market in the Middle East makes up only a small part of the overall merger and acquisition (M&A) marketplace. However, it is in a very healthy state with deal volumes and values significantly increasing in 2012, as compared to previous years,” said Richard Clarke, managing director, Transaction & Restructuring Services, Deloitte Middle East. “The financial crisis has impacted the number of active PE funds in the region, resulting in a reduction in total active firms. Yet, the positive side for PE firms is that there is reduced competition for assets,” he added.
Many private equity firms in region are still in the fund deployment mode, and have not yet entered the harvest phase of their fund cycles.
Deloitte experts believe that early fund investments in the Middle East are entering the market either by way of secondaries, IPO's or trade sales.
In addition, findings point to the successful practices of strong PE firms in the region, that have spent the past few years preparing their portfolio companies for sale.
Deloitte experts further indicate that Middle Eastern financial institutions are tightening their lending criteria often to the disadvantage of the growing small and medium sized companies.
As such Private Equity firms are and will play an increasingly important role in the development of this SME sector helping to bridge the gap between founder equity and short-term borrowings.
“This capital structure gap is ideal for growth capital focused PE funds. It also allows founders to grow their businesses in a controlled way while still retaining equity upside, a flexible structure which the banking community and a large corporate partner may not be able to accommodate,” commented Clarke.
In terms of challenges that the private equity market faces in the Middle East, Deloitte experts point to sourcing quality deals, valuation gaps between vendor and acquirer, PE differentiation and aligning with Limited Partner's expectations.
Deloitte experts point to compliance with Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, to be the forefront of PE Executives' concerns. Both these acts have significant repercussions around the globe, with many corporate clients ensuring their suppliers are in accordance with these acts. – SG


Clic here to read the story from its source.