'Private equity fundraising in H1'2010 is already equal to fundraising in FY2009. This would suggest that private equity activity is expected to gradually increase after two turbulent years for the regional industry' said Mr. Nasser Saidi from Hawkamah during the launch of the GVCA Annual Report 2009.

Access to capital is unlikely to be a problem for private equity firms in the Middle East as the region is flush with liquidity and regional GDP is set to grow 3.5% in 2010 according to a report by Insead.

The market for leveraged buy-outs has dried up forcing private equity firms to focus on growth capital and equity driven transactions according to an article by Robin Wigglesworth in the Financial Times. Wigglesworth believes the scarcity of credit is putting pressure not only on returns but also on the buyout model which is unsustainable and will lead to the disappearance of a substantial number of private equity funds.

'Unless the world's top oil producer tackles inefficiencies in its energy system, the Kingdom's stockpile of crude for export is in danger of falling by as much as 3m barrels per day by 2028' said Khaled al-Falih, Head of Saudi Aramco.

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Middle Eastern investors are likely to put far more money to work in emerging markets than in Europe, Japan or North America over the next three to five years, according to a recent article in the Financial Times.

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