While Europe struggles with weak capital markets, the GCC region is experiencing a veritable boom in private equity and venture capital. Pension funds, sovereign wealth funds and family offices are investing billions in new projects.
- The major sovereign wealth funds (such as the Public Investment Fund in Saudi Arabia or Mubadala in Abu Dhabi) are massively driving forward investments in future technologies.
- Private markets such as venture capital and private debt are developing into important instruments for financing start-ups, green tech and digitisation projects.
- For German investors, the opportunity arises to gain access to exceptionally large projects via co-investments with regional funds.
- Challenges lie in the sometimes low transparency and the exit markets that are still under development.
Conclusion
The GCC is becoming a global hotspot for alternative investments. German funds and companies that are willing to accept the peculiarities of the region can benefit from attractive returns and long-term partnerships here.
