Assets under management in the Middle East, which increased 52 per cent over the past three years, are set to grow further as oil and gas prices continue to rise.
A rally in oil prices, up more than 60 per cent over the past year and hovering above $100 a barrel, along with soaring natural gas prices are helping to drive private capital's improved fortunes in the Middle East, alternative assets industry data and analytics specialist Preqin said in a report on Thursday.
Natural gas prices in the US soared to a 14-year high this month and they surged in Europe as a result of the Russia-Ukraine war, now in its third month.
Preqin said: "The ongoing conflict in Ukraine alongside the continued post-pandemic economic resurgence is pushing commodity prices higher, creating short-term opportunities.
"But in the long-term, Europe’s governments are looking to reduce reliance on imported hydrocarbons. Efforts to increase energy independence and step away from imported hydrocarbons have major implications for the Middle East."
After contracting in 2015-2016 following the oil price slump that started in 2014, assets under management in the Middle East have rebounded since the end of 2019, increasing 52 per cent to $35 billion, with Saudi Arabia and the UAE recording improvements.
The UAE accounts for about 57 per cent of AUMs in the region as of the third quarter of 2021, Preqin says. Saudi Arabia accounts for about 24 per cent, while Bahrain has about 13 per cent of the region's AUM market.
Venture capital deals in the region's software, internet and financial services sectors have grown in line with local governments' efforts to boost high-skilled jobs and make their economies more service-based.
Preqin cited Merak Capital's $40m investment in Saudi Arabian software technology company Master Works, the largest software deal in the first quarter of this year, as an example of local investment supporting growth in tech groups.
Riyadh-based Merak raised capital from Jada, a private equity fund of funds founded by the kingdom's Public Investment Fund, as well as Saudi Venture Capital Company, the government’s private equity fund of funds.
"This deal, and many others, signal the strength of regional governments' commitments to economic diversification, as well as the future role of private capital models in delivering this," Preqin said.
Venture capital fund-raising accounted for, on average, about 41 per cent of capital raised annually and 46 per cent of total capital ($3.7bn) since 2017, it said.
As private capital markets evolved over the past few years, the asset class mix in the Middle East has also changed and the inflow of international capital has increased into deals.
“Not only has the asset class mix changed with fund-raising moving away from real estate and more towards venture capital, but international capital is increasingly flowing into deals in the region," said Alex Murray, vice president of research at Preqin.
Three Saudi Aramco and Adnoc gas and oil pipeline deals in Saudi Arabia and the UAE attracted capital from BlackRock, Silk Road Fund, China Merchants Capital, Samsung Asset Management, GIC, Brookfield and Global Infrastructure Partners. The three deals in June 2020, April 2021 and December 2021 had an aggregate value of $38bn, according to Preqin.
"This marks a change from the traditional role of the Middle East as a source of capital for deployment outside the region. As economic growth drives investment opportunities, more global managers are looking at the region for deployment opportunities,” Mr Murray said.
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Brief scoreline:
Liverpool 5
Keita 1', Mane 23', 66', Salah 45' 1, 83'
Huddersfield 0
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Meydan race card
6pm Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m
6.35Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m
1,800m
7.10pm Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m ,400m
7.45pm Al Rashidiya – Group 2 (TB) $180,000 (T) 1,800m
8.20pm Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m
8.55pm Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m
9.30pm Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
THE%C2%A0SPECS
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The biog
Hobby: "It is not really a hobby but I am very curious person. I love reading and spend hours on research."
Favourite author: Malcom Gladwell
Favourite travel destination: "Antigua in the Caribbean because I have emotional attachment to it. It is where I got married."
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
2019 ASIAN CUP FINAL
Japan v Qatar
Friday, 6pm
Zayed Sports City Stadium, Abu Dhabi
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Points Classification
1. Marcel Kittel (Germany / Quick-Step) 63
2. Arnaud Demare (France / FDJ) 38
3. Andre Greipel (Germany / Lotto) 25
4. Sonny Colbrelli (Italy / Bahrain) 24
5. Mark Cavendish (Britain / Dimension Data) 22
6. Taylor Phinney (U.S. / Cannondale) 21
7. Geraint Thomas (Britain / Team Sky) 20
8. Thomas Boudat (France / Direct Energie) 20
9. Stefan Kueng (Switzerland / BMC Racing) 17
10. Michael Matthews (Australia / Sunweb) 17
UAE currency: the story behind the money in your pockets
What to watch out for:
Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways
The hulls of three ships will be used for the roof
The hulls will painted to make the largest Italian tricolour in the country’s history
Several pillars more than 20 metres high will support the structure
Roughly 15 tonnes of steel will be used
Picture of Joumblatt and Hariri breaking bread sets Twitter alight
Mr Joumblatt’s pessimism regarding the Lebanese political situation didn’t stop him from enjoying a cheerful dinner on Tuesday with several politicians including Mr Hariri.
Caretaker Culture Minister Ghattas Khoury tweeted a picture of the group sitting around a table at a discrete fish restaurant in Beirut’s upscale Sodeco area.
Mr Joumblatt told The National that the fish served at Kelly’s Fish lounge had been very good.
“They really enjoyed their time”, remembers the restaurant owner. “Mr Hariri was taking selfies with everybody”.
Mr Hariri and Mr Joumblatt often have dinner together to discuss recent political developments.
Mr Joumblatt was a close ally of Mr Hariri’s assassinated father, former prime minister Rafik Hariri. The pair were leading figures in the political grouping against the 15-year Syrian occupation of Lebanon that ended after mass protests in 2005 in the wake of Rafik Hariri’s murder. After the younger Hariri took over his father’s mantle in 2004, the relationship with Mr Joumblatt endured.
However, the pair have not always been so close. In the run-up to the election last year, Messrs Hariri and Joumblatt went months without speaking over an argument regarding the new proportional electoral law to be used for the first time. Mr Joumblatt worried that a proportional system, which Mr Hariri backed, would see the influence of his small sect diminished.
With so much of Lebanese politics agreed in late-night meetings behind closed doors, the media and pundits put significant weight on how regularly, where and with who senior politicians meet.
In the picture, alongside Messrs Khoury and Hariri were Mr Joumbatt and his wife Nora, PSP politician Wael Abou Faour and Egyptian ambassador to Lebanon Nazih el Nagari.
The picture of the dinner led to a flurry of excitement on Twitter that it signified an imminent government formation. “God willing, white smoke will rise soon and Walid Beik [a nickname for Walid Joumblatt] will accept to give up the minister of industry”, one user replied to the tweet. “Blessings to you…We would like you to form a cabinet”, wrote another.
The next few days will be crucial in determining whether these wishes come true.
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