On the MENA Private Equity Puzzle: Insights and Recommendations

Abstract

This article analyzes the Middle East and North African private equity markets by incorporating key aspects representing four main clusters: governance, regulatory/legal frameworks, management, and finance. Using a convergent interviewing technique to explore 352 institutions across 13 countries in the region, the findings present specific contributions concerning all four clusters. The results guided the design of a systematic post-acquisition approach to value creation beyond financial engineering that is perceived to be more applicable to emerging markets, given the current evolving regulatory frameworks. Lastly, the author presents policy recommendations for establishing an active alternative investments market. The results reveal the need to depart from stand-alone, country-specific, government-owned SME exchanges into a regional, partially privatized Alternative Investments Market.