First Deloitte MENA Private Equity Confidence Survey launched
June 2008

As you know, we like to keep you informed of any insightful research we produce that’s in the public domain. We are delighted, therefore, to announce the publication of the first MENA private equity market study that we’ve just completed for Deloitte. After the success of the India survey series which was launched last year, this study marks the start of the MENA equivalent.

Due to be repeated every six months and involving in-depth conversations with senior executives at the leading private equity firms active in the region, the Deloitte MENA Private Equity Confidence Survey provides a key indication of the direction market trends are moving in and why. Shedding light on this exciting market, the results illustrate very positive expectations going forward.

The headline findings this time were…

• An increase in investment activity in the MENA region is widely expected, driven by increasing supply and demand and macro-economic buoyancy.
• High levels of liquidity and overall growth momentum mean that entry multiples are expected to increase or at least stay at current levels.
• The leading growth sectors are energy, real estate and infrastructure. This is where most deal activity is forecast.
• High volumes of exit activity are expected as fund portfolios start to reach maturity.
• More funds are expected to target the region due to the relative attractiveness of MENA on a global scale and the relatively embryonic stage of the private equity market’s development in much of the region.
• Human capital deficiencies and foreign ownership rules are seen as key challenges in the MENA private equity market.
• Confidence in the long-term potential of MENA private equity is high.

The only way to really understand how trends are likely to develop in a complex and diverse market such as MENA is to speak to the professionals helping create these trends. Exploring the drivers, the nuances, the hurdles and the opportunities was a critical part of this study.

Chris Ward, Global Head of Corporate Finance Advisory at Deloitte, added:

The private equity market is very important to us, as is the MENA region, and we needed to know how active investors in the Middle East see this market developing. This latest survey by Arbor Square has given us everything we wanted to know – and some.

Look out for the results of the third Deloitte India Private Equity Confidence Survey in the near future.

To request a copy of the summary report from the first MENA study, or to put your name down for a copy of the third India report summary when it’s ready, don’t hesitate to get in touch with us.

Contact at Arbor Square Associates:

Kevin McNally
kevinmcnally@arborsquare.com
+44 (0) 20 7096 5017