Skip to content Skip to Search
Skip navigation

GCC attracts growing level of global capital

Plenty to smile about: International investors are increasingly putting capital into the Gulf Pexels/Mikhail Nilov
Plenty to smile about: International investors are increasingly putting capital into the Gulf
  • Saudi Arabia garners $10bn
  • UAE is second with $2.1bn
  • Capital ready to deploy quadruples

Members of the Gulf Cooperation Council are emerging as prime destinations for capital deployment from across the world, as countries in the GCC look to domestic investment opportunities to fund growth beyond hydrocarbons.

Private capital assets under management (AUM) in the countries that make up the GCC hit $12.3 billion in 2022, from $1 billion in December 2008, a report from Preqin, a data tracker, has revealed.

Saudi Arabia took the bulk of this, at $10 billion, followed by the UAE, with AUM of $2.1 billion.

The report revealed that a change in investor sentiment towards the region has attracted money into venture capital funds, with capital ready to deploy quadrupling from $400 million in December 2021 to $1.63 billion at the end of 2022. 

This includes deals completed by international investors such as Blackstone, CVC Capital Partners, Silver Lake and Apollo.

There were now 529 active general partners in GCC member countries, almost double the 268 who were in the region in 2018, the report said. 

Under the structure of each private equity fund, general partners manage the fund and pick which investments they include in their portfolios.

According to the report, 142 funds in the GCC raised a total of $6.5 billion between 2018 and 2023.

Of this, 23 venture capital funds closed with aggregate capital raised of around $2.5 billion; 81 real estate funds closed between September 2021 and September 2023, raising $2.3 billion; and 38 private equity funds closed between 2018 and 2020 with an aggregate raise of $1.7 billion.

Middle East-based sovereign wealth funds were found to have combined AUM of more than $3.7 trillion as of March 2023. 

Average allocations to alternative assets such as private equity and venture capital in 2022 surged to 44 percent of AUM in December 2022, up from 22 percent in December 2021, Preqin said. 

Latest articles

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

Saudi housing costs rose nearly 9% year on year in May

Saudi housing costs rise but inflation remains steady

Housing costs in Saudi Arabia rose nearly 9 percent year on year in May, but it was not enough to push overall inflation in the kingdom over 2 percent. The latest data from the General Authority for Statistics showed the annual inflation rate in Saudi Arabia was 1.6 percent in May, having remained at this […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]