OVERVIEW
The Middle East, which for the purpose of this report we define as compromising the member countries of the Gulf Co-operation Council, North Africa, Cyprus, Djibouti, Iran, Iraq, Lebanon, Palestine, Syria, Yemen and the Asian part of Turkey, is discovering institutional private equity.

Owing to a number of key socio-political and macroeconomic factors, explored in detail in this report, a raft of local private equity firms are now managing increasingly sizeable amounts of capital. In addition, several Western private equity groups are currently evaluating the attractiveness of moving into ‘MENA’ as well. It is early days yet, and sceptics warn that expectations may already be exceeding what the region is capable of delivering.

Private equity push into the Middle East comes at a time when many countries in the region are attempting to modernise and lay the foundation for a prosperous future. In many oil-producing economies, for example, this means a converted effort to reinvest oil-derived surpluses into a broad array of industries and infrastructure projects in order to reduce their dependence on natural resources. Other countries, despite the recent rise of political Islam in many regional societies, are attempting to liberlise both politically and economically, which in turn has obvious implications for local businesses.

From PEI’s vantage pint, it appears that these transformational trends are indeed crucial if the Middle East is to retain and even extend its influence in world affairs. Their success will also determine the future of private equity in the region.

TABLE OF CONTENTS
On the rise
Key note interview – Rabih Khoury, Dubai International Capital
Notables and quotables
Key note interview – Shailesh Dash, Global Investment House
Key not interview – Muneef Tarmoom, Istithmar
Driven to distraction
Key note interview – Izzet Guney, Millennium Private Equity
Humble beginnings
Key not interview – Nabil Triki, Swicorp
Desert bloom
Key not interview – Ziad Oueslati, Tuninvest Finance Group
Desert capitalists
Regulation I – Fund formation in Bahrain
Regulation II – Fund Formation in Dubai
The region in numbers