MENA Private Equity to Rebound in 2025 Amid Deal Slowdown

AFRICAN STOCKS AND FINANCEFebruary 26, 2025 at 9:15 AM UTC

TLDR

The Middle East and North Africa’s private equity (PE) market is expected to position for a long-term rebound in 2025
After a slowdown in deal flow, investors are shifting focus to mid-market growth opportunities, sector-specific plays, and scaling existing businesses
Between 2020 and 2024, MENA’s PE market recorded $28 billion in transactions across 356 deals, led by the UAE, Saudi Arabia, and Egypt

The Middle East and North Africa’s private equity (PE) market is expected to position for a long-term rebound in 2025, according to data platform Magnitt. After a slowdown in deal flow, investors are shifting focus to mid-market growth opportunities, sector-specific plays, and scaling existing businesses rather than outright acquisitions.

Between 2020 and 2024, MENA’s PE market recorded $28 billion in transactions across 356 deals, led by the UAE, Saudi Arabia, and Egypt. The healthcare, finance, and F&B sectors attracted the most investments.

The region saw its strongest PE activity in 2022 and 2023, with deal values reaching $7.96 billion and $8.09 billion, respectively. However, 2024 recorded a sharp decline, with only 68 transactions worth $4.92 billion—a reflection of global PE slowdowns.

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Key Takeaways

Magnitt’s report suggests that anticipated interest rate cuts could reignite interest in leveraged buyouts, while regional competition among Gulf economies may drive fresh investment flows. With investors recalibrating strategies and focusing on value creation rather than pure acquisitions, the MENA PE market is poised for a recovery in 2025.

Finance

Private Equity

MENA

Magnitt

Acquisitions

Buyout