"A thirst for investment", Emerging Private Equity
Oct | 2009
The demands of the Middle East for safe water are expected to grow sharply in the coming years, driven by economic growth and huge infrastructure projects such as Saudi Arabia's five 'economic cities'. According to the Saudi government, to ensure 100% coverage in the country there will need to be US$21bn of capital and operational investment in the water distribution sector over the next 20 years and US$33bn invested in the sewage sector.
LONDON’S private equity firms remain in the doldrums, suffering the hangover after a period in which a slew of buyout deals had driven the market to record levels. Surveys show that around half of the UK’s private equity chiefs believe their investors will refuse to meet commitments to supply the cash for new deals at several high-profile buyout houses.
In the first quarter of this year, only 90 buyouts were completed and 86 in Q2, the lowest quarterly total since 1985, according to the latest data from the Centre for Management Buyout Research.
Private equity investment in buyouts in the first half of the year reached a disappointing £3.2 billion ($5.1 billion) around a quarter of the £12.5 billion in deals in the same period in 2008 and the lowest half yearly figure since 1995.
The biggest UK private equity groups have entered a period of introspection. Jon Moulton, the guru of London’s private equity scene, has resigned from his firm Alchemy Partners, while the leadership teams of the other leading buyout firms have all been overhauled, including 3i, Candover and BC Partners.
"Abdallah Al-Mouallimi accompanies Belgian Prince to Saudi Arabia", Arab News
Oct | 2009
RABIGH, JEDDAH: Belgian Crown Prince Philippe toured the King Abdullah Economic City (KAEC) in Rabigh and the King Abdullah University of Science and Technology (KAUST) in Thuwal, both north of Jeddah, on Monday.
During his tour of KAEC, a visibly impressed Prince Philippe — who was accompanied by Belgian officials and top business leaders — observed parts of the project that are in progress. He also visited the Marine Tower within the Bay La Sun Village, which is located 150 meters from the beach and next to the Business Park.
Private equity firms in the Middle East are low on leverage and high on cash, with around $11bn of unspent capital in their coffers. But a lack of deals in the region has the industry bracing for a wave of consolidation and closures.
The term flipper has become synonymous with Dubai's real estate market and the type of speculative investor who bought properties that were sold on before they were even built. As property valuations came tumbling down so did that business model.