Gulf Venture Capital Association - Private Equity in The Middle East 2007

Prime Sponsors:
Private Equity & Venture Capital

Associate Sponsors:
in the Middle East
2007
Annual Report
Private Equity & Venture Capital
in the Middle East
2007
Annual Report
©2008 GVCA & KPMG
KPMG, A United Arab Emirates member firm of the KPMG network of independent
member firms affiliated with KPMG international, a Swiss cooperative.
All Rights Reserved.
KPMG and KPMG logo are registered trademarks of :KPMG international, a Swiss cooperative.
Report Steering Committee

Ashish Dave
Partner, KPMG
Ihsan Jawad
CEO, Zawya & Director, GVCA
Imad Ghandour
Executive Director, Gulf Capital & Chairman of Information & Statistics Committee, GVCA
Special Thanks
Special thanks go to all those who contributed their time and effort to make this report possible, and include:
Gulf Capital: Imad Ghandour
KPMG Team: Ashish Dave, Dale Gregory, Meera Kohli, Muhammad Salman and Krishna Dhanak
Zawya Team: Ihsan Jawad, Yasmina Chraibi, Jeanette Lepper, Ali Arab and Jad Hawili
Euro RSCG Bahrain Team: Talal Al Madani, Mahmood Ali and Charlotte Calixto
We would also like to thank all the sponsors for their support, and all the survey participants.
Table of Contents

Foreword
By His Excellency Amr Al-Dabbagh, Governor of SAGIA 6
1 Important notice
1.1 Basis of preparation 10
1.2 Definitions and assumptions 10
1.3 Data filtering 11
2 GVCA introductory message 14

3 KPMG introductory message 15

4 Private equity in the MENA region
4.1 Overview 18
4.2 Fund profile over the last decade 21
4.3 Nature and size of investments 23
4.4 Percentage of funds deployed 24
4.5 Focus of investments 27
4.6 Rumoured funds 31
4.7 Return on investments 31
5 Emerging trends of private equity in MENA in 2007

5.1 Analysis of funds and investments in 2007 38
5.2 Implications for the future 46
6 Sovereign Wealth Funds

6.1 Introduction 50
6.2 Key trends 51
6.3 Exits 54
6.4 What’s next for SWFs? 55
7 Survey on the impact of Private Equity and Venture Capital on

the development of Private Equity backed companies
7.1 Introduction 58
7.2 Background 58
7.3 Highlights 59
7.4 Survey results 60
8 GVCA - Gulf Venture Capital Association

8.1 GVCA Overview 66
8.2 Board Members 67
8.3 Member’s Directory 68
9 Directory of Private Equity firms in MENA 73
10 Sponsors’ Profiles 81
Foreword
By His Excellency Amr Al-Dabbagh,

Governor of SAGIA
Foreword
By His Excellency Amr Al-Dabbagh,

Governor of SAGIA
The MENA region is going to be a different region for doing business in the 21st century. The private sector
in general, and private equity in particular, will have enormous investment opportunities of a scale never
seen before. The trend to make Arab economies more competitive is irreversible, and the economic policies
adopted by most Arab governments will sustain today’s growth into the future.
Take Saudi Arabia as an example. In 2007 the World Bank’s Doing Business Report ranked Saudi Arabia
number one in the entire Middle-East and Arab world and twenty third globally for Ease of Doing Business. In
2006 we were ranked thirty eight globally and in 2005 sixty seven. This increase in rankings results from the
national 10x10 objective endorsed by the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz.
The goal is to see Saudi Arabia among the top ten most competitive nations globally by 2010. This has also
contributed to a corresponding increase in the value of investment licenses issued by the Saudi Arabian
General Investment Authority (SAGIA). From 2004 to 2005 the value of investment licenses jumped thirty-
fold to SR 200 billion, and from 2005 to 2006 it jumped again 25% to SR 253 billion, and from 2006 to 2007
it rose to SR 334 billion. In 2007 UNCTAD ranked the Kingdom number one in the Middle East and Arab world
for attracting FDI and twentieth globally. Last year Saudi Arabia attracted USD 18 billion dollars in FDI and
USD 73 billion in DDI for a total of USD 91 billion.
To help us achieve our 10x10 objective, in 2005 we launched a new global product called Economic Cities. Each
of the eventual six cities will be developed by the private sector and serve as models of global competitiveness.
Each will house beyond best practices and infrastructure in every possible domain, including regulatory
environment, legislation, environment and sustainability, service provision, and life style. Total contribution
to the Saudi GDP by 2020 will be USD 150 billion, and GDP per capita will grow from USD 13,500 to USD
33,500 within the Economic Cities.
Regional private equity players are in a unique position to benefit from this unprecedented growth. The
information presented in this report will likely support this claim in almost every aspect, and give investors
a glimpse into the future of the region.
1 Important Notice
1.1 Basis of Preparation

1.2 Definitions and Assumptions
1.3 Data Filtering
1 Important Notice
1.1 Basis of Preparation
This report has been prepared based on data provided by GVCA, sourced from the Zawya Private Equity
Monitor.
Historic data has been updated from that used in the 2006 GVCA report to include full year results for 2006
and to reflect increased disclosure of information in the market.
KPMG has not initiated any primary research in relation to this report and has not sought to establish or
confirm the reliability of the data provided by GVCA and Zawya.
The information contained herein is of a general nature and is not intended to address the circumstances of
any particular individual or entity. Although we endeavor to provide accurate and timely information, there
can be no guarantee that such information is accurate as of the date it is received or that it will continue to
be accurate in the future. No one should act on such information without appropriate professional advice
after a thorough examination of the particular situation.
In analysing and determining the parameters of available data, it has been necessary to apply certain criteria,
the most significant of which are as follows:
• Private equity has been defined to include houses that have a General Partner / Limited Partner
structure, investment companies and quasi-governmental entities that are run by, and operate in the
same way as, a private equity house.
• Funds managed from MENA but whose focus is to invest solely outside the region are excluded from the
fundraising totals.
• Investments made outside of the MENA region have been included in the data to the extent that the
fund manager itself has some focus in the region.
• Investment size represents the total investment size i.e. it includes both the debt and equity portions in
the investment.
• The fund raising total is the amounts raised on first / second closes (for fund raising funds), closed funds,
investing funds, fully vested funds and liquidated funds.
• With regard to funds, the year has been defined as the vintage year which is assumed to be the date of
the first official close of the fund (or if unknown the final closing date of the fund).
• Given the relatively infant state of the industry in MENA, exits have been defined to include partial exits,
although simple dilutions have not been included.
• Investments in infrastructure have been included but real estate has been excluded.
10
Private Equity and Venture Capital in the Middle East 2007
1 Important Notice
1.2 Definitions and Assumptions
For the purposes of the analysis of funds, we have considered the following types of funds as defined by
Zawya’s Private Equity monitor:
• Announced: Official launch of funds which have yet to commence fund raising.
• Rumored: Funds expected to announce their intention to commence fund raising.
• Fund raising: Funds which have been announced and which are in the process of raising capital.
• Investing: Funds which have closed (raised funds) and are actively seeking and/or making
investments.
• Fully vested: Funds that have invested all capital raised. Some of the investments may have
divested in this stage but not all.
• Liquidation: Funds which have divested all investments as well as fulfilled all obligations to its
shareholders
1.3 Data Filtering
The primary data sourced from Zawya has been filtered according to the definitions used in the Emerging
Markets Private Equity Association (EMPEA) research methodology.
In particular we have used the following definitions:
Fund Size: In the case of funds yet to make a first close, fund size is equivalent to the target amount, and is
noted as such. For funds achieving at least one official close, fund size is reported as the capital raised to date,
while for funds that have made a final close, the fund size is the total capital raised. All amounts are reported
as USD millions. Rumoured funds are excluded.
Funds of funds or secondaries are excluded.
Region: Statistics are based on the ‘market’ approach and categorizes funds based on the intended destination
for investments (as defined in the fund’s announced mandate) as opposed to where the private equity (PE)
firm is located.
Focus: Conventional infrastructure funds, for example funds investing directly in Greenfield infrastructure
projects, are excluded from the fundraising statistics. However, funds that make PE investments in companies
operating in the infrastructure sector are included in fundraising totals. Real estate funds are excluded.
EMPEA does not track or report other alternative asset classes, including hedge funds, real estate funds and
conventional infrastructure funds. In our analysis we have excluded data from investment-type companies
and real estate firms, while also separating Sovereign Wealth Funds (SWFs) from the private equity funds. SWF
investments have been analysed separately.
11
GVCA and KPMG Introductory Messages
2 GVCA introductory message
The sub-prime problem is now snowballing into a global recession. Banks are hesitant to even lend to each
other. Central bankers are panicking. Yet the prospects for private equity in the Middle East and North Africa
(MENA) region remain bright, despite increasing challenges.
The next few months will be difficult for all financial players, including private equity companies operating in
MENA. However, economic fundamentals remain strong and are supported by aggressive fiscal policies and
high oil prices. Governments’ reserves will continue to trickle down to the rest of the economy – sustaining
corporate profits and public investments. A sober market will offer better valuations, and hence better returns
for private equity. Although the increased attention the region enjoyed in 2007 may be disrupted, we expect
such disruption to be temporary. In fact, the robust economic performance of the region is likely to attract
additional interest from international institutional investors over the medium term.
This document reports another remarkable year for private equity in MENA. The billion dollar deal milestone
was surpassed for the first time with the Egyptian Fertilizers Company deal. Capital raising for existing funds
remained strong, but newcomers found it harder to raise money, which is a sign of maturity in the industry.
Exits, once a mirage, are becoming more common with 19 reported in 2007, up from 6 in 2005.
The 2006 report has established itself as a benchmark for the industry and I have been pleased to see it
frequently quoted in conferences and articles. However, we aim to reach further with each edition. In this
issue, we have implemented the Emerging Market Private Equity Association (EMPEA) standards for data
collection and presentation. We have also included thought-provoking pieces from regional and international
industry leaders to highlight the latest challenges and topics facing Private Equity in the Middle East and
North Africa.
Finally, a note of thanks to our sponsors (many of which are repeat sponsors from last year) and to the KPMG
and Zawya teams who worked diligently over the last two months to complete this report.
Imad Ghandour Ihsan Jawad

Chairman Director
Information & Statistics Committee Information & Statistics Committee
Gulf Venture Capital Association Gulf Venture Capital Association
Abdullah Al Subyani
President
Gulf Venture Capital Association
14
GVCA and KPMG Introductory Messages
3 KPMG introductory message
KPMG is pleased to continue its association with the GVCA’s annual report on private equity in the MENA
region in what has been another fascinating 12 months.
The last year has seen a number of large and high profile global transactions by MENA private equity. In light
of the US credit crunch and the reputation issues faced by private equity funds in Europe, the United States
and the United Kingdom, outbound investments into these markets by MENA-based funds have gained even
greater publicity.
The increasing global profile of private equity players in MENA means they themselves must understand
the key factors that exist in the region in order to be able to communicate successfully with stakeholders
worldwide. These include industry trends, investment strategies being adopted and the issues, challenges and
opportunities faced in the private equity arena.
MENA private equity funds continue to extend their global reach in three main areas: raising funds, deploying
funds and recruiting talent to manage funds. In order to do this successfully, general partners must show they
belong on the global stage, based on a credible and transparent track record and history of best practice.
If this report, and successive annual reports, can assist in demonstrating to a global audience that there is real
substance, structure and professionalism behind the stories of liquidity and petrodollars looking for a home,
then this can only benefit the region’s private equity houses and their investors.
Ashish Dave
Partner, Head of Private Equity, Middle East and South Asia
Tel: +971 4 403 0300; e-Mail: ashishdave@kpmg.com
KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148
countries and have more than 113,000 professionals working in member firms around the world.
KPMG’s presence in the Lower Gulf dates from 1973. With close to 700 professional staff, we operate
from offices in Dubai, Abu Dhabi, Sharjah and Muscat. We also work closely with our colleagues in offices
throughout the region and across the world.
15
4 Private Equity in the MENA Region
4.1 Overview
4.2 Fund profiles over the last decade
4.3 Nature and size of investments
4.4 Percentage of funds deployed
4.5 Focus of investments
4.6 Rumoured funds
4.7 Return on investments
4 Private equity in the MENA region –
buoyant oil prices driving continued economic growth
4.1 Overview
The stellar growth in private equity since 2005 has continued unabated into 2007, with the wealth created
from oil spreading further inside the GCC and into MENA. Improving investment conditions, increased liquidity,
and mounting international interest in these emerging markets have ameliorated the attractiveness of private
equity as a viable regional asset class.
While foreign direct investment continues to flow into the region, a greater share of GCC funds is being
invested locally as a result of increasing liberalisation, privatisation and regional integration. This is attracting
capital that would have otherwise been invested elsewhere.
The expanding private equity sector offers a promising new vehicle for fund raising as family owned businesses
begin to come to terms with selling interests in their companies as well as the benefits of attracting external
investors. These benefits include the implementation of proper corporate governance frameworks, synergies
from restructuring and access to management talent that is scarce in the region.
There was a significant amount of transactional activity in the MENA region, despite the sub-prime crisis
of 2007. Strong and sustainable economic growth, limited reliance on leverage, and limited exposure to the
global credit markets have kept MENA region relatively outside the economic turbulences evolving in other
regions.
Yet, the number of challenges to private equity players is mounting. One key challenge in the coming years
is to sustain the deployment of funds in quality deals. Another challenge is to develop exits and realize
returns. Regulatory structures and improving the legal framework in the region are further challenges for this
emerging industry.
18
Private
Private Equity
Equity and
and Venture
Venture Capital
Capital in
in the
the Middle
Middle East
East 2007
2007
Thought Leadership
The Fourth Centre of Private Equity
Frederic Sicre,
Executive Director, and Divia Srinavasan, Abraaj Capital
While the recent sub-prime meltdown has led to a slowdown in private equity investment in the US and
Europe and a surprising 21 per cent decline in PE investment in Asia (excluding South Asia), the Middle East,
North Africa, South Asia (MENASA) region recorded a phenomenal 90 per cent growth in PE investment in
2007. With PE investment of over USD 17 billion, the MENASA region has finally reached a critical mass and
many experts in the industry believe that it will emerge as the world’s fourth centre of PE.
The MENASA region is currently undergoing an unprecedented socio-demographic shift wherein the local
population of 1.8 billion people, which also happens to be one of the youngest in the world, is tapping into
increasing wealth on the back of record-high oil prices. At the same time, despite mega oil revenues and
current account surpluses, governments in the region are encouraging Foreign Direct Investment (FDI) by
speeding up liberalisation and privatisation efforts in an attempt to create world-class companies.
The IPO of DP World and the planned floatation of Emirates are two examples of such initiatives. Ultimately,
the goal of these governments is to diversify their economies away from one source of revenue and to ensure
there is sustainable job creation and opportunity for the region’s burgeoning population. PE investors, which
seek out high-potential companies, align their interests with management and provide these companies with
the necessary capital, operational expertise and best practice corporate governance to fuel their growth, are
well positioned to participate in the economic paradigm shift that is transforming the region.
Although PE has entered a new era in the region, there still remains tremendous opportunity for growth. In
comparison to more developed markets such as the US, where PE funds under management are six per cent of
GDP, private equity funds in the MENASA region are still comparatively low at less than two per cent of GDP.
But with the positive underlying fundamentals outlined above, the untapped nature of the regional PE market
has started to attract both international PE firms as well as local heavy-weights. This increase in competition
will be positive, even for existing local PE firms, because it will serve to attract the talent necessary to support
the industry’s growth. Ultimately, however, the real beneficiaries of the local PE industry will be the region’s
broader business community.
19
Thought Leadership
The Impact of Private Equity on GCC Family Businesses
Faisal Belhoul,
Managing Partner, Ithmar Capital
The family, with its associated networks, is the central element of business in the Gulf Cooperation Council
(GCC) and has retained its traditional importance, despite rapid growth and modernisation across the region.
Perhaps more than anywhere else in the world, business in the Gulf is a question of personal fulfilment,
providing a means to enhance a family’s social standing, rather than a purely wealth-generating, market-
driven activity.
In a sense, investors in both the GCC and the global markets have no choice but to engage with family firms.
Family-run businesses – defined as firms of which a single family controls the ownership, at least through
control of the board and usually also through involvement in senior management – are dominant worldwide.
For example, in the United States, family-controlled businesses represent 35 per cent of the Fortune 500 List,
generate 50 per cent of GDP, and account for 60 per cent of the country’s employment and 78 per cent of
new job creation.
Within the GCC these figures are even more strongly weighted, with over 90 per cent of all commercial
activity and non-oil-related GDP in the region estimated to be controlled by family firms. These firms number
over 5,000, hold combined assets of more than USD 500 billion, and employ 70 per cent of the workforce.
Private equity has already been the foundation for success the world over. Family businesses in Europe
partnering with private equity firms increased their exposure to new markets by 60 per cent, with two-thirds
also out-performing the competition. The average value of private equity-backed businesses doubles at the
point of exit after an average ownership period of just three and a half years.
Family business owners should be mindful that despite the popular perception of private equity as synonymous
with short-term cost-cutting, the bulk of growth in private equity-owned firms in fact derives from organic
revenue growth and acquisitions. Employment levels remained the same, or even higher, at exit versus entry
in 80 per cent of US deals and 60 per cent of European deals.
Owners must recognise that private equity can offer unparalleled experience in addressing capital restructuring,
market repositioning, management optimisation and governance needs. Private equity also enables the
definitive separation of business ownership from business management and the development of family firms
into institutions, rather than ‘one-man shows’.
At the same time, private equity investors must differentiate their expertise and clearly demonstrate their
value, while always remaining sensitive to the regional business culture. There is a learning curve in operation
for all parties, and the focus on value creation must become a constant one for families and investors.
The ongoing intersection of family businesses and private equity in the GCC presents a unique opportunity for
both parties. If partnerships between private equity firms and family businesses in the GCC can successfully
create an environment in which managers can act as owners and owners no longer need to act as managers,
then all parties can confidently look to a truly competitive future.
20
4.2 Fund profile over the last decade
Priv a te Eq uity fun ds clos edEquity

Private ov er the la s t Closed
Funds deca de over the Last Decade
7,000 22 25
6,000
20
5,000 16
USD Million
4,000 12 15
3,000 10
6 6
2,000
3 3 3 3 5
2
1,000
-
- -
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
F und vintage year
F unds rais ed to date N umber o f funds rais ed to date
Source: Zawya Private Equity Monitor
The last three years have seen a boost in the fund raising activity in the region. The number of funds raising
capital has more than doubled in this period, with 22 funds reaching at least the first close in 2007, compared
to 16 in 2006 and 12 the year before that.
In addition, the average fund size raised in 2007 was USD 274 million, while in 2005 this figure was USD 204
million.
Total funds raised in 2007 totalled USD 6 billion, compared to the 2005 total of USD 2.4 billion. Of the 22
funds raising capital in 2007, 14 were announced in 2006 and 6 in 2007 (2 in 2005).
The time for making a close has elongated since 2005. In 2005, it took 3 to 9 months to make a first close.
However, by 2007, it took typically 6 to 18 months to make a first close, but such a time frame is typical in
other regions.
21
Priv a tePrivate
Eq uity fun ds (cum
Equity ula tiv
Funds ely ) ov er the laOver
(Cumulatively) s t deca
thedeLast Decade
16,000 76 80
14,000 70
12,000 54 60
10,000 50
USD Million
38
8,000 40
13,364
6,000 30
4,000 7,346 20
2,000 4,650 10
- -
2005 2006 2007
A s s ets under management N umber o f funds rais ed to date
The cumulative funds raised over the last three years has increased more than threefold from USD 4.7 billion
funds raised cumulatively up to 2005 to USD 13.4 billion up to 2007. However, total assets under management
as a percentage of total funds (announced and closed) marginally decreased from 68 per cent in 2006 to
58 per cent in 2007. This was primarily because of larger size funds announced in 2007 for which a large
proportion has not yet started the fund raising activity.
T op 5 closed funds in 2007

Y ear S tatus Fund M anager Inves tm ent Focus R egion A nnounced A m ount
announced am ount rais ed
2006 Inves ting Infras tructure & Grow th Capital Fund Abraaj Capital Infras tructure M E NAS A / Turkey 2,000 2,000
2005 Inves ting S w icorp J ous s our Fund S w icorp Financial Advis ory S ervices Oil and Gas & E nergy M E NAS A / GCC 1,000 712
2007 Fund R ais ing w ith clos e Gulf Opportunity Fund I Inves tcorp B ank B alanced GCC 1,000 650
2007 Fund R ais ing w ith clos e Global B uyout Fund L.P. Global Inves tment Hous e B uyouts M E NA 1,500 500
2006 Inves ting M E NA Infras tructure Fund Dubai International Capital and HS B C Infras tructure M E NA 500 300
22
4.3 Nature and size of investments
Information limitations
The region’s relative lack of market maturity, together with the mega growth of its private equity industry, has
resulted in a number of PE investments being unreported. Market experts estimate an average of around 10
to 30 per cent of PE investments remains unannounced.
Furthermore, some PE houses have not revealed the size of their PE investments, casting further limitations
on the information available. Approximately 14 per cent of the total number of PE investments (included in
our analysis) in the last decade did not publicly disclose their size.
In the absence of comprehensive information on the financing structures used by the PE houses for funding
investments, we are unable to analyse and comment on the financing strategies used for structuring PE
investments between equity and debt.
PE Inves tments betw een 1998 & 2 007
PE Investments between 1998 & 2007
4,000 70
62
60
56 50
3,000
50
USD Million
40
2,000
30
17 20
1,000 16
6 10
2 3 1
0
- 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
S ize o f P E inves tment N umber o f trans ac tio ns
Note: Number of transactions includes 29 transactions for which the transaction size is not available
Total PE investments in the MENA region have increased by a compound annual growth rate (CAGR) of 107 per
cent since 1998. A staggering 92 per cent of the total investments in the last decade were carried out from
2005 onwards, with 54 per cent taking place in 2007 alone.
5 Largest PE investm ents in 2007

PE Hous e/ fund nam e N am e of the target entity Country T arget s ector Inves tm ents s ize
(U S D m illion)
Abraaj B uyout Fund II E gyptian Fertilizers Company E gypt B as ic M aterials 1,410
Abraaj B uyout Fund II S audi Tadaw i Company S audi Arabia Healthcare 177
S w icorp J ous s our Fund E as tern Petrochemical Company S audi Arabia Oil and Gas 175
Infras tructure and Grow th Capital Fund Acibadem S aglik Hizmetleri and Ticaret Turkey Healthcare 163
Global B uyout Fund L.P Fon Finans al Kiralam A.S . Turkey Financial S ervices 120
23
Sizeinofthe
S iz e of PE Inves tments PE las
Investments
t decade in the Last Decade
2,500 140
122 120
2,000
100
1,500
USD Million
80
51 60
1,000
40
500
20
9
1 1
- 0
1 to 2 0 million 2 1 to 10 0 million 10 1 to 50 0 million 50 1 to 1 billion M ore than 1 billion
S ize o f P E inves tments N umber o f trans ac tio ns
The majority of private equity investments in the last decade (66 per cent) were less than USD 20 million in
size, while 28 per cent of investments were made in the USD 21 million to USD 100 million bracket. Only 11 of
the total 184 PE investments during the past decade have been over the USD 100 million mark.
However, in recent years it appears that larger investments are now driving the activity, with the USD 1 billion
threshold being broken in 2007. Two investments have crossed the USD 500 million mark. Abraaj Capital
executed these investments (Egyptian Fertilizers Company for USD 1.4 billion in 2007 and Egyptian Financial
Group (EFG) Hermes Holding Company for USD 501 million in 2006).
4.4 Percentage of funds deployed
Historically, in the MENA region, funds are raised before the opportunities to invest are found, and it is
inevitable and expected that at such an early stage in the development of this market one would expect some
capital overhang.
However, privatisation and re-engineering of family businesses has resulted in an increase in investment
opportunities. The number of funds actively raising capital declined in 2007, while the number of investment
opportunities soared, so the capital overhang is beginning to narrow.
24
Deployment rate of some large funds
Deploym ent rate by top funds

V intage Y ear Fund M anager Inves tm ent Focus R egion A nnounced A ctual T rans action N um ber of
year announced value rais ed s ize trans actions
2007 2006 Infras tructure & Grow th Capital Fund Abraaj Capital Infras tructure M E NAS A / Turkey 2,000 2,000 1,785 4
2007 2005 S w icorp J ous s our Fund S w icorp Financial Advis ory S ervices Oil and Gas & E nergy M E NAS A / GCC 1,000 712 277 3
2005 2005 The Pre-IPO Fund Global Inves tment Hous e B uyouts GCC 550 550 190 23
2005 2005 Abraaj B uyout Fund II Abraaj Capital B uyouts M E NAS A 500 500 933 5
2006 2006 Global Opportunis tic Fund II Global Inves tment Hous e Pre-IPO M E NAS A / China / Turkey 1,000 500 225 10
2007 2007 Global B uyout Fund L.P. Global Inves tment Hous e B uyouts M E NA 1,500 500 251 3
2006 2006 Gulf Capital Gulf Capital B uyouts M E NA / GCC 330 330 260 6
2005 2004 Amw al Fund I Amw al Al Khaleej B uyouts M E NA 267 267 228 11
2007 2007 Amw al Fund II Amw al Al Khaleej B uyouts M E NA 267 267 150 7
Note: Transactions for Infrastructure and Growth Capital Fund include the joint USD 1.4 billion acquisition (Egyptian
Fertilizer Company in 2007) made by Abraaj through its infrastructure and Growth Capital Fund and the Abraaj Buyout
Fund II. Abraaj has not disclosed the split between the two.
Announced funds to be raised
Private
Priv Equity
a te Eq uity Funds
fun ds Expected
ex pected to beto
ra be Raised
is ed - by A n- nby Announced
oun ced Year
y ea r
7,000 18
15 16
6,000
14
5,000
12
USD Million
4,000 10
7 8
3,000
6
2,000
4
1,000
2
- -
2006 2007
F unds to be rais ed N umber o f funds to be rais ed
Note: Funds announced and to be raised are based on the year in which they were announced and represent those funds
still to reach a first close.
25
There is an increasing number of funds that are taking a prolonged time to raise their capital. Of the total
funds announced in the last two years a total of USD 6.6 billion is still to reach a close since 2006 and USD
3.2 billion since 2007. The number of funds announced but yet to reach a close declined from 15 in 2006 to
7 in 2007.
This was primarily on account of a worldwide focusing fund, namely “DIB / DPW Family of Funds” announced
in 2006 with an anticipated value of USD 3 billion. Since 2006, the fund has been in the fundraising stage,
and details of reaching a first close remain unavailable.
Funds announced in 2007 greater than U S D 0.5 billion

Fund M anager Inves tm ent R egion A nnounced A ctual
Focus value rais ed
Global B uyout Fund L.P. Global Inves tment Hous e B uyouts M E NA 1,500 500
Gulf Opportunity Fund I Inves tcorp B ank B alanced GCC 1,000 650
E M P E nergy Fund E merging M arkets Partners hip (B ahrain) E nergy M E NA 1,000 N.A
The Carlyle Group M E NA Fund The Carlyle Group B uyouts M E NA 750 N.A
Aldar Private E quity Fund Ithmaar B ank B alanced M E NAS A 500 200
NB D S ana Capital S ana Capital B uyouts M E NAS A, Turkey 500 N.A
The region is attempting to raise larger funds. The top five funds announced in 2007 represented 70 per cent
of the total value of all funds announced that year (compared to 60 per cent in 2006).
As the industry matures and consolidates, some of the funds announced, mainly by new fund managers, will
never reach successful closure. Industry experts doubt that some of the mega fund announcements in 2006
and 2007 will ever come to fruition.
26
4.5 Focus of investments
Egypt has emerged as the preferred destination for investment in the MENA region, with USD 2.3 billion
being invested in the last decade. The higher level of investments in the past 10 years is mainly due to
two investments of more than USD 500 million each, carried out in 2006 and 2007 by Abraaj Capital which
accounted for 82 per cent of the total Egyptian investments.
G eographical s plit of PE Inves tments in the las t decade
Geographical Split of PE Investments in the Last Decade
Others
21%
E gypt
37%
B ahrain
2%
J o rdan
6%
S audi A rabia
15%
UA E
19%
27
Thought Leadership
Fully Aligned for Growth
Dr. Ahmed Heikal,
Chairman and Co-founder, Citadel Capital
As the pace of business in the Middle East and North Africa accelerates, family businesses are looking to raise
funds, sell out, restructure or offload non-core assets. Deregulation is opening new opportunities for green
field investment. Governments are increasingly willing to divest assets in privatisation sales. The list goes on.
Going forward, this means a growing number of private equity deals will originate from situations in which
trust, transparency and good corporate governance are vital. As origination streams diversify beyond the usual
sources, savvy industry players will embrace the reality that the full alignment of the interests of all parties is
becoming the key to sustainable growth.
This list of concerned parties is much longer than the traditional relationship of a private equity firm to a
portfolio company. To drive growth, we must instead take into consideration the interests of the firms, their
limited partners, portfolio companies, employees, communities and even the economies in which PE firms do
business. In this scenario, the full alignment of interests makes the difference between being a good firm and
a truly great one.
Good private equity firms accommodate and guard the interests of their limited partners. Great private equity
firms align their interests with those of their limited partners by co-investing significant sums alongside them,
sharing equally in risks and returns.
Good private equity firms ensure portfolio companies have viable business plans and keep a watchful eye
on performance. Great private equity firms help talented portfolio company management teams develop
blueprints that align the companies’ operational and strategic plans.
Good private equity firms benchmark compensation packages at the firm and at portfolio companies against
others in the industry. Great private equity firms build compensation packages at both levels that include
stock options and employee stock ownership programs, thereby ensuring staff and corporate interests are
fully aligned proportional to their contributions to value creation.
Good private equity firms ensure they meet minimum standards of good governance. Great private equity
firms separate management from board-level functions, thereby ensuring everyone’s interests are aligned, in
harmony and protected.
Good private equity firms understand that corporate social responsibility programs are an expected part
of doing business. Great private equity firms align their giving with the community’s real needs, seeing
community development initiatives as a way to make positive contributions to the environments in which
they do business.
And, finally, good private equity firms work to manage relations with government ministries and agencies.
Great private equity firms, on the other hand, go a step further, treating governments as true partners with a
shared interest in promoting economic growth and development — creating value for citizens, the state and
companies alike.
28
Geographical Split of PE Investments in the Last Decade

G eographical s plit2ofinvestments
(Excluding PE Inves tments in the
of over USDlas500
t decade
Million)
(excluding 2 trans actions of over U S D 5 00 million)
Others
30% UA E
27%
B ahrain
3%
E gypt S audi A rabia

9% 22%
J o rdan
9%
Note: the above chart excludes the following investments:

i Abraaj Capital’s investment in Egyptian Financial Group Hermes Holding Company in 2006 (USD 501 million)
ii Abraaj Capital’s investment in Egyptian Fertilizers Company (Egypt) in 2007 (USD 1.4 billion)
Once these two significant investments are excluded from the analysis, the geographic split shows a considerable
amount of investments in the UAE (27 per cent) and Saudi Arabia (22 per cent), and modest totals in Jordan
and Egypt; with a combined USD 0.8 billion being deployed into these countries in the past decade.
In 2007, private equity investment in Saudi Arabia reached USD 568 million, compared to USD 423 million
for all investments from 1998 to 2006 combined. This was mainly due to the economic liberalization policies
adopted by the Saudi government and reflected by the Saudi Arabian General Investment Authority (SAGIA)
2010 plan.
29
Sector
S ector Focus
focus of PEofinves
PE Investments
tments in theinlas
the Last Decade
t decade
Oil and G as
Others 10%
17%
C o ns umer G o o ds B as ic materials
7% 23%
C o ns truc tio n
7%
F inanc ial S ervic es

H ealthc are 16%
9%
T rans po rt
Source: Zawya Private Equity Monitor 11%
Investments in the last decade have been in the Basic Materials sector (23 per cent of all investments) followed
by Financial Services (16 per cent) and Oil and Gas (10 per cent) sectors. The data has been influenced by a
small number of large transactions (the two largest investments in the last decade, which were each worth
more than USD 500 million, were both made in these sectors).
S ector focus of PE inves tments in the las t decade

Sector Focus of PE Investments in the Last Decade
(Excluding 2 investments of over USD 500 Million)
T rans po rt
Others
15%
24%
H ealthc are
11%
P o wer and Utilities
8%
Oil and G as
C o ns umer G o o ds 13%
9%
F inanc ial S ervic es
10%
C o ns truc tio n
Source: Zawya Private Equity Monitor 10%

i Abraaj Capital’s investment in Egyptian Financial Group Hermes Holding Company in 2006 (USD 501 million)
30
Once the distorting effect of the two biggest transactions in the last decade is excluded from the analysis,
a different trend emerges with the sector focus transforming to almost an even distribution to Transport,
Healthcare, Oil and Gas, Financial Services, Construction, and other economic sectors. The distribution of
investments accentuates the fact that growth in MENA – and particularly in the GCC – is across all economic
sectors at this early stage in the economic cycle.
4.6 Rumoured funds
The following rumoured funds have been excluded for the purpose of our analysis (in accordance with filtering
the data per EMPEA standards):
Y ear Fund Investm ent Focus R egion U S D m illions

2006 E volvance Private E quity GCC Fund Others GCC 500
2006 NCB Private E quity Fund B uyouts GCC 300
2006 E FG-Hermes Oil & Gas Fund B uyouts E gypt 100
2007 IT Ventures II Venture Capital E gypt 100
2007 GCC E nergy Fund II B uyouts GCC 300
2007 TNI venture capital fund Venture Capital GCC 100
1,400
4.7 Return on investments
Over the past 10 years, PE houses have invested an estimated USD 12 billion against which a mere USD 0.9
billion (measured at cost and representing 7.7 per cent of the total PE investments) have been realised by
means of exits. In the last decade, a total of 49 PE investments have been sold (including partial exits) of
which 36 were in 2006 and 2007. However, it is worth noting not all exits are reported in the public domain
by PE houses.
Exits
E xits by PE hous by PE Houses
es during 2 005 & 2Between
007 2005 & 2007
19
2,000
17
1,500
USD Million
1,000
500
-
2005 2006 2007
S ale c o ns ideratio n N umber o f trans ac tio ns
Note: Sales consideration represents exit price
31
As the PE market is fairly young and most funds are still in the deployment stage, it is not unexpected that
only a few exits have been realized by this stage. It is expected that the rate of exits is maintained in 2008 as
investments made in 2004-2006 reach realization.
In exits to date, the holding period appears to vary from one to four years, with an average of just over two
years. Many investments are reaching realization faster than the planned typical investment horizon of three
to five years. The coming few years will reveal if such exits have been realized too soon, and whether better
opportunities were found for deploying cash elsewhere.
E xi ts b y P E hous es duri ng 2 007

P E hous e Fund name T arget Hol di ng p eri od P urchas e p ri ce S al e p ri ce (U S D I RR on exi t
(i n years ) (U S D mi l l i on) mi l l i on)
Abraaj B uyout Fund II E gyptian Financial Group Herm es Holding Com pany 1 5 01.0 1,100.0 Info not available
Abraaj B uyout Fund L.P . S eptech E m irates 3 12.8 Info not dis clos ed 39%
Abraaj Capital Abraaj B uyout Fund L.P . Am wal 4 1.5 Info not dis clos ed 101%
Abraaj B uyout Fund L.P . M aktoob Group 2 5 .2 Info not dis clos ed 75 %
Abraaj Real E s tate Fund Arabtec Holding 3 11.4 Info not dis clos ed 116 %
Global O pportunis tic Fund II Reliance P etroleum Lim ited 1 3 2.6 48 .0 100%
Global O pportunis tic Fund II Zhaojin M ining Indus try Com pany Lim ited 1 8 .1 11.0 3 4%
Global O pportunis tic Fund II P ars vnath Developers 1 0.7 0.9 5 2%
Global O pportunis tic Fund II Dubai Financial M arket 1 0.1 0.3 3 48 %
Global Inves tm ent Hous e
The P re-IP O Fund Dubai Financial M arket 2 0.2 0.3 Info not available
The P re-IP O Fund Gulf Navigation Holding 2 5 .4 10.2 Info not available
The P re-IP O Fund Com bined Group Com pany for Trading & Contracting 2 3 .9 5 .2 Info not available
The P re-IP O Fund Tam weel 2 1.7 3 .6 Info not available
Injazat Technology Fund Atos O rigin M iddle E as t 1 Info not available Info not dis clos ed 75 %
Injazat Capital Injazat Technology Fund O m nix M edia Networks 4 5 .0 Info not dis clos ed 3 1%
Injazat Technology Fund J ordan Training Technology Group 4 1.0 Info not dis clos ed 48 %
Am wal Al Khaleej Com m ercial Am wal Fund I B ank Audi 2 21.3 9 1.1 Info not available
Inves tm ent Com pany Am wal Fund I Lebanes e Canadian B ank 2 7.1 13 .5 Info not available
NB K Capital NB K Capital E quity P artners Yudum Food 1 18 .0 70.7 Info not available
HS B C P rivate E quity M E HS B C P rivate E quity M iddle E as t Havelock AHI 4 3 .0 Info not dis clos ed Info not available
Recent trends indicate that the most notable sector for the exits of PE investments in the region has been the
Financial Services sector, which has been driven by one of the most prominent exits in 2007. This was Abraaj
Capital’s sale of its stake in the EFG Hermes Holding for USD 1.1 billion, which alone makes up around 57
per cent of the total exit value to date.
32
Exits by PE Houses Between 1998 & 2007 by Sector

E xits by PE hous es betw een 1998 & 2 007 by s ector
Others
6%
C o ns truc tio n
6%
T elec o ms and IT
7%
T rans po rt
7% F inanc ial S ervic es
57%
Oil and G as
17%
Excluding the EFG sale from the analysis, the trend of exits over the last decade has focused on the oil and
gas sector, which has seen exits worth USD 393 million, followed by Transport (USD 166 million) and Telecom
and IT (USD 158 million).
In terms of the number of exits, the Telecom and IT sectors top the table with 13 each, while there have been
11 in Financial Services.
Returns have been promising. However, given the limited number of exits and the different risk profiles it
is difficult to build a picture of the expected return profile. According to EMPEA research the average net
IRR expected by international institutional investors from PE commitments in the MENA region is 22.8%
(compared to 22.6% for all emerging markets and 17.2% for the US). Hence, based on the exits track record
so far, the MENA region has exceeded these expectations.
From the publicly available information it appears that most exits to date have been by way of IPOs, sales to
co-investors or to corporate investors rather than the secondary PE market.
33
Thought Leadership
How Private Equity is Building Global Players
Dr. Karim El Solh,
CEO, Gulf Capital
Global corporate leaders emanating from the Middle East were a rare breed until recently, but private equity
is impacting the corporate landscape by supporting worthwhile regional companies and expanding them
globally.
During the last century, the private sector had a limited role in most Arab economies, while the public
sector dominated economic activity in oil and gas, petrochemicals, heavy industry, transportation, healthcare,
education, utilities and municipal services. The weak role of the private sector was further diminished by the
size of the economy: the Arab countries combined had an economy in 2001 smaller than Spain.
However, over the past five years, rapid economic growth, which exceeded 20 per cent in nominal terms in
several Gulf countries, together with clear government policies liberalising the economy, have translated into
stellar growth for the private sector.
Leading Arab corporations quickly consolidated their position in the local market and started exploiting
the competitive advantages that are inherent to the regional economy in order to go global. In logistics,
Agility and Aramex are leading the way. In water desalination and treatment, Metito is increasing its market
share locally and expanding globally. In oil services, Maritime Industrial Services, Petrofac and Lamprell have
emerged as strong competitors to global players dominating the field. In telecommunication services, Zain,
Orascom and Oger Telecom have all penetrated markets outside the Middle East from Italy to South Africa. In
interior contracting, Depa United is the third largest interior contractor globally.
From the Gulf Capital portfolio, several global leaders have emerged. Maritime Industrial Services, in which
Gulf Capital is the largest shareholder, is now the leading regional offshore oil and gas contractor. In 2007, it
was listed on the Oslo stock exchange as part of its global drive, and has so far received orders for rigs from
Norway to Singapore, increasing its backlog from USD 100 million pre-Gulf Capital to almost USD 1 billion
today. This year, for a Norwegian client it completed the first ever off-shore rig built in the Middle East – a
surprising accomplishment in a region that is the largest exporter of oil.
Gulf Capital is also a major investor and backer of i2, the number one mobile phone distributor in the Middle
East and Africa. Gulf Capital has helped increase the geographical footprint of i2 from 13 countries in 2006
to 22 countries today. Similarly, i2 sales rocketed from SR 3 billion in 2006 to SR 7 billion today, positioning
i2 as the clear leader in the Middle East and Africa and one of the top players in the world.
34
Thought Leadership
Secondaries: Another Promising Dimension
Rami Bazzi (CFA),
Principal – Private Equity, Injazat Capital
The continuing growth of MENA’s private equity constitutes the building block for the development of a
secondary market. Expected to emerge in the medium run, the secondary market will contribute to the long
term growth of the industry.

Private Equity in MENA has grown in scale, depth and reach. It has risen as an attractive option to capital
markets and real estate investments. In addition to regional managers, some prominent international players
have already ventured into the region through direct investments or co-branding, while others are planning
to enter at a later stage as the industry further matures.

While the industry progresses from fund raising to the deployment and investment stages, investment
managers will experience a new set of challenges. In fact, only a few managers have proven their ability to
successfully source deals, add value and profitably exit investments. Competition is a challenge not to be
taken lightly. Most importantly, investors' patience over a 6 to 8 year period is yet to be tested in the MENA
region.

The rise of the secondary market offers a valuable opportunity supporting the long term growth and
attractiveness of private equity as an alternative asset class in MENA. First and foremost, it addresses the
liquidity issue that LPs might face over the life of the fund. The secondary market will also empower
investment managers with the flexibility to shift their strategies, change their investment policy or rebalance
their portfolio allocations. For secondary funds, secondary markets represent a channel to confidently access
one of the most promising emerging markets, overcoming obstacles faced by first movers, while managing
vintage year exposure and diversification.

Private Equity is booming in MENA. It is developing at a faster pace than anywhere else in the world. Driven by
regional and international macro-economic factors and an enticing regulatory environment today, we believe
that the growth cycle may even be extended over the medium and long run by the surfacing of a secondary
market. Secondary markets will undoubtedly attract international private equity houses and prompt the
development of a regional secondary fund.
35
5.1 Analysis of funds and investments in 2007

5.2 Implications for the future
5.1 Analysis of funds and investments in 2007
Funds
Size – Fun ds ra is ed to da te by s ize

Funds Raised to Date by Size
7,000 mo re than 1000
6,000 501 - 1000
5,000
201 - 500
4,000
USD Million
101 - 200
3,000
51 - 100
2,000
21 - 50
1,000
0 - 20
-
2005 2006 2007
Note: The size of the funds is based on the announced value expected to be raised by a fund. The amounts shown
represent the amount raised by the funds.
The average amount raised per fund has increased by 62 per cent from USD 169 million in 2006 to USD 274
million in 2007.
In 2007, 64 per cent of all capital raised was for funds larger than USD 500 million, while in 2006 this figure
was 19 per cent (22 per cent in 2005).
The only fund to have raised more than USD 1 billion is the Infrastructure and Growth Capital Fund managed
by Abraaj Capital. The fund was announced in 2006 at a value of USD 2 billion and has raised the full USD 2
billion to date (USD 500 million through a first close in December 2006 and USD 1.5 billion through a second
close in December 2007). The only other fund announced with a value greater than USD 1 billion is the Global
Buyout Fund L.P. managed by Global Investment House. The fund was announced in 2007 at a value of USD
1.5 billion and has raised USD 0.5 billion to date.
The tendency to raise funds larger than USD 1 billion will probably continue in the future, particularly for
infrastructure investments. With billions of dollars of infrastructure assets set to be privatized or to be built,
infrastructure funds today have a much larger market in the region than buyout funds.
Yet, the mid-market funds (USD 100 million to USD 500 million) maintained a significant market share in
2007, and are expected to remain a major player on the regional scenes for years to come. With transaction
sizes centring around the USD 20 million mark, such funds will be in an optimum position to tap into the
majority of the deals in the region.
38
Profiles of MENA PE Funds:
Investment focus:
Fun ds ra is ed to Funds
da te byRaised
s ector to Date by Sector Focus
focus
7,000
6,000
5,000
USD Million
4,000
3,000
2,000
1,000
-
2005 2006 2007
B alanc ed B uyo uts Infras truc ture Oil and G as and E nergy V enture C apital Others
The growth in the private equity market has been diverse in 2007, with a shift in the focus from only buyout
funds to infrastructure, balanced and oil and gas focused funds. Balanced funds increased from 4 per cent in
2005 to 26 per cent in 2007.
Eighty-two per cent of funds raised in 2005 were for buyout funds, with these totaling USD 2 billion. The
proportion of buyout-focused funds declined in 2006 and 2007 to 61 and 18 per cent, respectively.
Infrastructure funds represented 38 per cent of total funds raised in 2007 primarily as a result of the USD
2.0 billion Abraaj Infrastructure and Growth Capital Fund. With the rising need for infrastructure funding,
particularly for power and water sectors, local governments will be looking for external capital, providing
opportunities for PE funds.
Venture capital funds raised money in 2005 and 2006, but lost their appeal in 2007. Venture capital funds still
have to ascertain their viability in the MENA region in terms of availability of quality deal flow and realization
of successful exits.
39
Geographical focus
Funds raisFunds
ed to Raised
date by to Datefocus
region by Region
- totalFocus
funds - Total Funds
7,000
6,000
5,000
USD Million
4,000
3,000
2,000
1,000
-
2005 2006 2007
M E N A regio n M E N A S A regio n Others
Note: Others in 2007 include Infrastructure and Growth Capital Fund of USD 2 billion managed by Abraaj Capital.
Funds focused on the MENA region continue to represent the majority of the total funds raised. However, the
concentration of funds focused on the region over the last three years has reduced from 80 per cent of the
funds raised to date in 2005 to 46 per cent in 2007.
40
Funds Raised to Date by Region Focus - MENA Funds

Funds rais ed to date by region focus - M E N A funds
3,000
2,500
2,000
USD Million
1,500
1,000
500
-
2005 2006 2007
M E N A o nly GC C M E N A and o thers Others
Within the MENA region, the proportion of funds with a specific country focus has declined as more and
more funds have been raised with a focus on the overall MENA region. These MENA focussed funds accounted
for 18 per cent of the MENA capital raised in 2005, while in 2007 this figure had jumped to 58 per cent.
Furthermore, GCC-specific funds decreased from 47 per cent in 2005 to 24 per cent in 2007.
41
Investments
Size of investments
PE investments in 2007 broke the ‘billion dollar’ investment barrier for the first time, with one investment
crossing this milestone - Abraaj Capital’s investment in Egyptian Fertilizers Company (USD 1.4 billion).
From the past decade, 2007 was clearly the most prominent year in terms of the size of total announced
investments with USD 3.5 billion announced last year (54 per cent of the total investments of the past decade)
as compared to total investments during 1998 to 2006 of USD 3 billion.
In terms of the number of investments; a total of 62 were announced in 2007 compared to 50 in 2006 and 56
in 2005. This suggests the average investment size has increased relative to the historic average.
Excluding the billion-dollar transaction in 2007 (and the investments without size details disclosed in the
public domain) the average investment size in 2007 was USD 35 million, compared to USD 26 million in
2006.
Sector focus of PE investments
Preferred s ector of
Preferred PE inves
Sector tments
of PE during 2Between
Investments 005 and 2005
2 007 & 2007
4,000
3,500
3,000
2,500
USD Million
2,000
1,500
1,000
500
-
2005 2006 2007
B as ic materials T rans po rt F inanc ial S ervic es C o ns truc tio n
H ealthc are Oil and G as C o ns umer G o o ds Others
The Basic Materials sector has enjoyed the highest amount of PE investments in 2007 with total investments
of USD 1.4 billion. The above analysis is skewed due to the inclusion of two investments of over USD 500
million, one in 2006 and one in 2007.
42
Excluding these two investments to show a less biased picture, a different trend emerges:
Preferred
Preferred Sector
s ector of of PE
PE inves Investments
tments during 2Between
005 and 2005
2 007 & 2007
(Excluding 2 investments of over USD 500 Million)
2,500
2,000
1,500
USD Million
1,000
500
-
2005 2006 2007
H ealthc are F inanc ial S ervic es T rans po rt Oil and G as

C o ns truc tio n C o ns umer G o o ds Others

i Abraaj Capital’s investment in EFG Hermes Holding Company in 2006 (USD 501 million)
The healthcare, financial services and oil and gas sectors become the most preferred sectors for PE investments
in 2007 with total investments for the year of USD 449 million, USD 298 million and USD 357 million
respectively.
43
Thought Leadership
The Converging Era of Telecom, Media and Technology Industries in the MENA Region
Morten Kvammen,
Principal, Delta Partners
Convergence has been a buzzword related to the telecom, media and technology industries since the late
1990s. That decade saw AOL merge with Time Warner; media companies embrace the Internet through
content; and IP technology take over from traditional switching technologies to build and operate telecom
networks. It is, however, only the last few years which have seen the true coming together of the formerly
separate industries and it is increasingly difficult to classify a company as a telecom, media or technology
player.
One of the primary drivers of this convergence is the maturity of existing business models. Without significant
growth potential in their existing operations, companies are trying to capitalise on an existing customer
base or network assets by offering new products and services, or unique or proprietary content by utilising
new channels and delivery methods. Enabling technologies or improvements in existing technologies have
similarly made it possible to provide services to markets where it earlier had not been economical. Examples
of the latter include wireless networks replacing fixed networks for serving the last mile and lower handset
prices opening up new customer segments to voice, data and content.
While these trends have already emerged in more mature or deregulated markets in Europe, the Americas
and Asia Pacific, they have also started to impact the MENA region. We are currently at the beginning of a
second wave of rapid growth. From the demand side, increasing interest in Arabic content, search engines
and regional portals is driving the expansion of broadband in the region. From the supply side, this is being
enabled by increased network capacity and an extended opportunity to offer new services and access.
The supply and demand drivers are creating investment opportunities which provide higher growth and returns
than investing in the traditional mainstream technology, telecom and media business models:
From the supply side: New opportunities exist for companies to provide services traditionally delivered
in-house. The most significant are managed IT services, including content and service delivery platforms,
billing systems, network operations and maintenance and call centres. New licenses and alternative access
provision technologies also represent an opportunity for new players to enter the space. Fixed wireless access
technologies are a good example of this.
From the demand side: Investment opportunities will emerge for developers of Arabic media and early
developers of Web 2.0 and 3.0 applications and content. Solid businesses can be built on business models
which have proven successful in other markets.
The flourishing growth of primary services will create a number of new companies targeting these opportunities.
While the number of players will expand for a period, at some point the market will consolidate. A further
investment theme will be to identify and invest in the key consolidators or the companies with strategic assets
or customers, which are therefore most likely to be acquired.
44
Geographical focus of PE investments
G eographical s plit of PE inves tments during 2 005 & 2 007

Geographical Split of PE Investments Between 2005 & 2007
4,000
3,500
3,000
2,500
USD Million
2,000
1,500
1,000
500
-
2005 2006 2007
UA E E gypt S audi A rabia J o rdan T urkey Others
Egypt has been the most preferred sector for PE investments for 2006 and 2007 with a total investment of
USD 1.6 billion in 2007. The fact that the largest two transactions have been in Egypt highlights the potential
of Egypt as a destination for investments.
Geographical
G eographical s plit Split
of PEof PE Investments
inves tments during Between
2 005 & 2005
2 007 & 2007
(Excluding
(excluding 2 investments
2 trans actions of over U of
S Dover USD 500 Million)
5 00 million)
2,500
2,000
USD Million
1,500
1,000
500
-
2005 2006 2007
UA E E gypt S audi A rabia J o rdan T urkey Others

i Abraaj Capital’s investment in EFG Hermes Holding Company in 2006 (USD 501 million)
Excluding these two investments, the UAE has historically been the preferred location for PE investments in
the region, with the country’s PE investments passing the billion dollar mark in 2007.
45
As the Saudi economy liberalises, Saudi Arabia is emerging as a preferred destination, with investments in
2007 of USD 568 million. Assuming that the Saudi liberal economic policy is maintained and given the size of
the Saudi economy relative to the region, it is expected that Saudi Arabia will assume a bigger share of total
investments in the future.
5.2 Implications for the future
MENA PE activity is evolving from its take-off in 2005 to a more mature stage of larger size deals, value
creation and opportunities for exits. The challenges for private equity going forward are:
- Enhancing deal flow and concluding larger transactions: The amount of funds raised and the expected
continued momentum of fund raising in the future imply that the PE industry has to secure additional
deals of larger size. Back in 2004, industry pundits estimated that there would be no more than 10 PE
deals in the GCC, and time has proved them wrong. Today, it is difficult to predict how the additional
billions of money raised will be deployed, but macro-economic trends in the region – liberalization,
growth of the private sector, and privatization – are all favourable factors for creating more and larger
deals. Furthermore, the PE industry is maintaining a positive image, an image of good partnership. This
image will make PE firms an acceptable partner for both the private and the public sectors.
- Upgrading the talent pool: As a nascent industry no older than 4 years, the depth and breadth of local
talent is limited. The legal, operational, and financial nuances of the region make importing talent
from developing economies less effective than anticipated. However, local PE players are successfully
marrying local knowledge of doing business with international expertise in structuring and managing
PE deals. We have seen increased sophistication in deal structuring in 2007 as PE firms imported talent
and blended it with their local teams.
- Dealing with the entry of global players into the market: Several global PE players are now operating in
the region. The Carlyle Group is now in the fund raising stage for a MENA fund. 3i, CVC, and Deutsche
Bank have partnered with regional PE players. Ripplewood and Actis have made single investments in
Egypt. Others are scouting the region for opportunities. It is expected that global players will eventually
establish a strong foothold in the region; however, based on lessons learned from Asia, regional players
will continue to have a significant role as both partners and competitors for global funds.
- Developing multiple exit options and not relying heavily on IPO-only strategy: The strong IPO market,
weak private sector, and constraints on foreign direct investment have increased the importance of
IPOs as an exit opportunity. However, it is expected that IPOs will have a smaller share of exits in
the future. Alleviating foreign investment restrictions in several GCC countries will also increase the
number of sales to international trade buyers. Finally, sale to financial buyers will be more common in
the future as is the case in more developed economies.
- Enhancing the financial engineering of deals: Debt providers in the region are increasing in sophistication
and awareness, and hence, will allow PE players to structure more sophisticated and better leveraged
deals. Acquisition finance has been rarely used so far, but banks are developing their acquisition/
structured finance expertise. Specialized mezzanine providers have been non-existent, but in 2007,
two PE players announced that they are raising Mezzanine funds for the region. This will furnish
sophisticated PE players with the tools to structure more sophisticated deals.
46
Thought Leadership
How different is Private Equity in the Middle East?
Ramzi Gedeon,
Managing Director, Head of Middle East and North Africa, TPG Capital (Texas Pacific Group)
There is a tendency to focus on the differences between private equity in the Middle East and the rest of
the world. While there is no doubt that to operate successfully in this region one must be sensitive to both
market and cultural differences, the emergence and growth of global private equity firms demonstrates that
the similarities end up outweighing the differences.
Industry experience, operational capabilities, the ability to attract top management, and structuring and
financing expertise, are transferable and have proved to be a competitive advantage when private equity
moved beyond the US to Europe and then to Asia.
But these lessons cannot be transferred blindly. In the Middle East today, in addition to political, regulatory
and foreign ownership considerations, the fact remains that by international standards the total number of
deals is low, they are still relatively small, mostly equity financed, and often minority (rather than control)
transactions. This has as much to do with where the private equity industry is in its stage of development, as
it is a regional trait. Over time, as the Middle East private equity market continues to mature, the differences
are likely to become even less pronounced.
47
6.1 Introduction
6.2 Key trends
6.3 Exits
6.4 What’s next for SWFs?
6.1 Introduction
Sovereign Wealth Funds have existed since at least the 1950s, but their total size worldwide has only increased
dramatically over the past 10 to 15 years. This has seen the combined value of SWFs jump from around USD
500 billion in the early 1990s to more than USD 2 trillion today.
According to Merrill Lynch the value of assets held by SWFs will quadruple to USD 8 trillion by 2011 and the
IMF is predicting this figure to exceed USD 12 trillion by 2015.
With oil prices reaching record levels over the past five years – oil was USD 20 per barrel in 2002 compared
to more than USD 80 per barrel in 2007 - a significant amount of wealth has been generated by the major
oil producing nations. This has resulted in significant cumulative current account and trade surpluses for Gulf
SWFs, which are dramatically increasing their presence on the international scene as they try to diversify their
economies away from a reliance on oil and gas.
According to a recent report from Thomson Financial, Gulf SWFs accounted for 38 per cent of global SWF
deals during the past 12 months, which indicates SWFs spent USD 83 billion on 183 deals in 2007.
Historically, SWFs were conservative and concentrated on low risk instruments such as government bonds and
bank deposits. However, there is now a growing trend to move towards private equity type deals, real estate,
commodities and hedge funds. There will be a growing appetite for foreign investments in the coming years
as petrodollar wealth is recycled on global financial markets.
Key SWFs in the Gulf region include the investment authorities of Abu Dhabi Investment Authority (ADIA),
Abu Dhabi Investment Council (ADIC), Ras Al Khaimah Investment Authority (RAKIA), Qatar (QIA) and Kuwait
(KIA).
ADIA is the largest fund amongst oil exporters and has accumulated assets estimated at between USD 650
billion and USD 1 trillion. KIA with some USD 200 billion of assets appear to be allocating a larger share of its
portfolio to emerging markets. Saudi Arabia’s SWFs are currently some way behind those in the UAE, but are
catching up as their asset base increases thanks to the country’s oil wealth.
The US sub prime crisis has seen some regional sovereign funds take advantage of the turmoil to build up
stakes in the likes of Citigroup and UBS, with these high profile acquisitions making SWFs the subject of
global debate. Their increasing power and liquidity is creating pressure and criticism from western markets,
with questions raised over foreign government-owned investment vehicles acquiring targets of strategic
significance.

The limited transparency of these funds is a growing concern in the global market. They are under pressure
to become more accountable and to adhere to higher standards of governance, even more so than other PE
funds. Western markets are calling for SWFs to ensure their investment decisions are shown to be taken on
financial grounds rather than being motivated by political or other non economic motives.
50
6.2 Key trends
Basis of information
For the purposes of this report, SWFs have been defined to include official SWFs as well as entities that act
as SWFs (particularly regarding their sources of funds) and which would not necessarily be classified under
traditional Private Equity investments (these include Mubadala, Istithmar and Dubai International Capital).
Given the limited transparency in disclosure of SWF transactions, our analysis is limited to the investments
which have been publicly announced as opposed to all the SWF investments in the region. We are aware that
the trends in our analysis are not necessarily representative of the entire market as for a large proportion of
transactions there is limited information.
S W F inves tments in the

SWF las t 5 years
Investments in the Last 5 Years
40,000 28
35,000
30,000
19
25,000
USD Million
15
20,000
15,000
10,000
5,000
1 1
-
2003 2004 2005 2006 2007
Inves tment s ize N umber o f inves tments
SWF investment activity in the region has significantly increased in the last three years with 2007 having the
largest number of investments. On the back of rising oil prices, funds have been accumulating reserves and
MENA sovereign investment funds have become prominent players in the global market.
51
Investment
Inves tment activity by S W Fs Activity
in the lasby
t 5 SWFs
years in the Last 5 Years
12,000
22
10,000
8,000
USD Million
12 12
6,000
4,000
5 4
3 3
2,000
1
-
A D IC QIA Is tithmar K IA D IF C D IC A D IA M ubadala
Inves tment s ize N umber o f inves tments
In the last five years, Istithmar has made the largest number of investments (22) followed by Dubai Investment
Capital and Mubadala. However, based solely on investment size, ADIA and Mubadala have invested the
largest amount of capital to date.
SWF
S W F in v es tm en ts by s ector Investments by Sector
40,000
Others
35,000
A uto mo tive
30,000 Indus trial M anufac turing
25,000 C o ns umer G o o ds
USD Million
20,000 T elec o m and IT
T ravel and T o uris m

15,000
R eal E s tate
10,000
H ealthc are
5,000
F inanc ial s ervic es
-
2005 2006 2007
In the last three years, the trend has been to move away from the more traditional real estate and basic
material sectors to diversify the breadth of investments.
The financial sector is becoming an increasing focus for both GCC and MENA-based SWFs, which have been
buying stakes in banks, money management firms and brokers.
52
QIA has taken a 20 per cent stake in the London Stock Exchange. In 2007, DIC made sizeable investments
in the banking giants HSBC Holdings in the UK and ICICI bank in India. ADIA invested USD 7.5 billion in the
largest US bank, Citigroup, to acquire a minority stake. This provided a critical cash injection at a time when
the bank faces multi-billion dollar losses due to significant mortgage related asset write-downs. Recently,
Kuwait Investment Authority was a significant investor in Merrill Lynch’s USD 4 billion second round of
capital raising.
A similar trend has been seen in China where China Investment Corporation (CIC) created the world’s fifth
largest SWF from trade surpluses and acquired a 9.9 per cent stake in US investment bank Morgan Stanley.
Meanwhile, Singapore’s Tamasek bought into Merrill Lynch.
SWFs continue to face political opposition and Western commentators have questioned whether they should
be able to hold a stake of more than 10 per cent in individual banks.
However, despite the criticism against SWFs, they have played a significant role in defusing the credit crisis
threatening the US economy. They have high liquidity pools which have been instrumental in the global
economic recovery
Significant infrastructure investment will be required in emerging markets in the next few years. SWFs already
play an important role in this by investing cross-border between emerging market countries as well as via
investments in local financial institutions.
S W F in v es tm en ts
SWFby geogra phy
Investments by Geography
40,000
Others
35,000
C hina
30,000
M alays ia
25,000
USD Million
G ermany
20,000
15,000 UA E
10,000 UK
5,000
US A
-
2005 2006 2007
Although there is still a significant concentration on the US and the United Kingdom, in 2007 there has been
increased focus on investing in the MENA region and developing markets. In 2007, USD 6.6 billion was invested
into the UAE, the largest transaction being Mubadala’s USD 4 billion investment in Emirates Aluminium.
53
In 2006, Istithmar made five acquisitions in the US totaling USD 2.4 billion, with half of this money invested
in the US real estate market (including 280 Park Avenue which was subsequently sold in 2007).
In August 2006, DIC snapped up Travelodge, the UK’s budget hotel business, paying USD 1.3 billion for the
chain’s 291 hotels.
However given the political concerns expressed by the United States and Europe, SWFs are looking to diversify
their strategies by investing in non-developed markets such as Asia, particularly China and India, which
appear to be more welcoming to SWFs and where growth remains robust. Istithmar opened offices in China
and is looking to invest in the world’s most populous country.
6.3 Exits
S W F exits
SWF Y ear T arget B uyer V alue (U S D m illions )
Dubai International Capital 2007 Tus s auds Group M erlin E ntertainments Group, UK 2,000
Dubai International Capital 2007 DaimlerChrys ler Info not available Info not available
Istithmar 2007 280 Park Avenue B roadw ay Partners 1,350
Cons ortium including Goldman S achs , W hitehall Fund and

Istithmar 2007 230 Park Avenue 1,150
M onday Properties
KIA 2005 B P Plc Info not available 2,000

QIA 2000 B LC B ank Info not available 153
Exits in the SWF market seem limited, because the market perception is that they prefer to have long term,
risk-averse portfolios and tend to pursue buy-and-hold strategies, with no short positions and perhaps no
borrowing or direct lending of any kind. They probably have long horizons and, like other long-term investors,
are willing to step in when asset prices fall.
Nonetheless there were some sizeable exits in 2007 of investments bought in the preceding two years:
- Istithmar’s sale of its two Park Avenue properties in the US. It claims the original strategy was to hold
on to these investments and attributes the sale to ‘unusual opportunities’ in the market. Istithmar
made a 63 per cent return on the 230 Park Avenue purchase price (bought for USD 705 million in 2005
and sold for USD 1.1 billion) and a 12.5 per cent return on 280 Park Avenue (bought for USD 1.2 billion
in 2006 sold for USD 1.4 billion).
- DIC acquired the Tussauds Group in 2005 for USD 1.5 billion and sold it to Merlin’s Entertainment
Group two years later for USD 2 billion (which is majority owned by Blackstone private equity group)
while maintaining a 20 per cent stake in the merged Group.
54
6.4 What’s next for SWFs?
At present, SWFs may have power through liquidity and the amount of cash they can raise. Yet they do
not necessarily provide the added advantages traditional private equity funds can offer a company, such as
industry knowledge and synergies from a global portfolio.
However, given their relatively new investing activities in the global market, SWFs have been focused on
recruiting experienced and western educated personnel to manage their funds along the lines of well
established PE funds.
Last year was impacted by a number of large transactions driven by the US sub-prime crisis. Troubled lenders’
immediate need for liquidity saw them welcome cash from SWFs.
GCC sovereign funds are expected to expand in number, particularly in Saudi Arabia. With oil prices remaining
buoyant, SWFs will continue to be influential players on the global financial markets. The Saudi Arabian
Monetary Agency (SAMA) recently announced it is considering launching a USD 6 billion fund this year with
the remit of investing in foreign firms. Even if oil prices decline, petrodollars will continue to grow at a robust
average rate.
However, it is uncertain what 2008 will bring for sovereign funds on the regulatory front. Western markets
are trying to introduce global regulatory standards and transparency rules for state-run investment vehicles,
and such policies will contradict with the local agendas of some SWFs.
55
7 Survey on the Impact of
Private Equity and Venture Capital on the
Development of Private Equity Backed Companies
7.1 Introduction
7.2 Background
7.3 Highlights
7.4 Survey results
7 Survey on the Impact of
Private Equity and Venture Capital on the
Development of Private Equity Backed Companies
7.1 Introduction
The second regional survey on the impact of Private Equity and Venture Capital on the development of Private
Equity backed companies was conducted in January 2008. The survey aims to provide a greater understanding
of the Private Equity/Venture Capital environment in the Middle East, from the perspective of the companies
receiving investment. However, almost half the respondents received funding one year or less than one year
previously, which suggests a rising trend in the number of companies enjoying private equity backing.
A v era ge yAverage Years

ea rs of priv a te of
eqPrivate
uity in v Equity
es tm enInvestments in Companies
t in com pa n ies
5 years o r mo re 11%
4 years 11%
3 years 17%
2 years 17%
1 year 22%
les s than o ne year 22%
0% 5% 10% 15% 20% 25%
7.2 Background
Methodology
Primary research for the 2007 survey was conducted through questioning top management of 18 companies
receiving private equity investment in the GCC region. The companies surveyed covered a breadth of industries
from across the GCC, as shown below.
Company profiles
Respondents by business activity

Industry No of companies
Banking/Financial 3
Construction 1
Energy/Utilities 4
Education 1
Hotel Management 1
Media & Communications 1
Technology software/hardware and services 1
Trade & Services 1
Technology Development 1
Water/Wastewater & Marine 1
Others 3
58
7 Survey on the Impact of Private Equity and Venture Capital
on the Development of Private Equity Backed Companies
In terms of geographical reach of the companies surveyed, 45 per cent have facilities globally, 44 per cent are
present throughout the Middle East (including the GCC), while the remainder are limited to their respective
nations.
20 per cent of companies surveyed had annual revenues of less than USD 10 million , 40 per cent had revenues
of between USD 10 million and USD 50 million, 33 per cent had revenues of between USD 100 million to
USD 500 million, and one of the companies earned annual revenues of more than USD one billion.
The average number of employees in the participating companies was 1,133.
Scope of the survey
The scope of the survey was largely unchanged from 2006 and was primarily aimed at providing insight into
the following areas:
• Why do companies seek Private Equity or Venture Capital investment?

• What benefits and drawbacks does external investment bring to companies?
• What are the trends in the Private Equity market in the Middle East?
• How successful have Private Equity and Venture Capital investments been in the GCC, and why?
• What next for Private Equity backed companies?
7.3 Highlights
Key headlines that can be drawn from the results are discussed below and highlight similar trends to those
which emerged in the 2006 survey:
➢ Reasons for seeking Private Equity or Venture Capital investment

The main reason for companies seeking Private Equity or Venture Capital investment was identified as
the need for additional capital for future growth followed by a buyout of existing shareholders.
➢ Obstacles faced in negotiating investments
The most frequently encountered obstacles in negotiating investments identified by those interviewed
included valuation, control of board of directors and timeline for due diligence.
➢ Investment resulting in enhanced performance
All the companies surveyed experienced an increase in net profitability which ranged from 30 per cent
to as high as 300 per cent.
➢ Interaction with companies invested into
All respondents identified some form of interaction with the private equity company, with the most
common being board meetings.
➢ Non financial contributions
In addition to financial investment, other key value enhancers include financial advice, marketing,
business contacts and strategic alliances.
➢ Initial public offerings are seen as the most favourable exit strategy
Over half of the companies interviewed in the survey listed an IPO as the preferred exit strategy, with 42
per cent proposing to launch an IPO in the next two to four years.
59
7.4 Survey results
Of the 18 respondents interviewed not all questions were fully answered by all individuals. The trends presented
in the analysis below are skewed to represent the results for which a response was given (not necessarily all
18 respondents) as opposed to the entire set.
Why do companies seek Private Equity or Venture Capital Investment?
R ea s on forReason
receivfor
in gReceiving
PE in v es PE Investments
tm en t
Others
22%
C apital
gro wth
C apital fo r 38%
ac quis itio n
6%
Launc h IP O
17%
B uyo uts
17%
The overwhelming reason for accepting external funding identified was the need for additional capital for
growth (38 per cent of the respondents), followed by providing assistance for management to launch an IPO
(17 per cent) or a buyout (17 per cent).
However, on the flip side, when participants were asked why they thought some companies have not co-
operated with private equity or venture capital firms, the main reason given was fear of control, followed by
a lack of understanding, which appears to stem partly from the relative unawareness of private equity’s role
and contribution.
What were the main obstacles faced when negotiating the investment with the private equity or
venture capital firm?
Others
18 %
A greeing exit s trategy
7%
7%
Owners hip
14 % Inves to r rights and privileges
14 %
T ime line fo r due diligenc e
18 %
C o ntro l o f B OD
2 1%
V aluatio n
0% 5% 10% 15% 20% 25%
60
The main obstacle the participants faced when negotiating the investment with the private equity or venture
capital firm was differences in valuation of the company (21 per cent of the respondents).
Other areas of concern include control of the board of directors, the timeline for due diligence and investor
rights and privileges.
These findings highlight the concerns of companies in the region, with family owned businesses reluctant to
give away too much control.
How does private equity interact with your company?
PE's in teraPE’s
ctionInteraction with
w ith in v es tee Investee
com pa n ies Companies
N o lo nger
A ppo inted invo lved
management 4%
4%
Interac tio n with

s enio r B o ard meetings
management 56%
36%
When asked how Private Equity investors interacted with the company being invested in, 56 per cent of
participants said board meetings. However, just over a third also included frequent interactions with senior
management.
Encouragingly, none of the companies surveyed had silent investors. In only one case had the investor
appointed management.
61
What are the changes in company performance seen since receiving Private Equity or Venture
Capital funds?
A v era ge im pa ct on perform a n ce a fter receipt of priv a te eq uity
or v en ture ca pita l fun ds
Average Impact on performance after receipt of Private Equity or Venture Capital
92%
32%
A verage annual 86%

perc entage inc reas e
43%
9 5%
92%
0% 20% 40% 60% 80% 100%
S ales revenue E xpo rt E mplo yment
Inves tment expenditures R es earc h & develo pment N et pro fitability
With the exception of several companies only receiving funding in the last year and consequently unable to
comment, all the firms surveyed experienced an increase in net profitability which ranged from 30 per cent
to 300 per cent.
Participants also saw increases in sales revenue (average rise 92 per cent), employment, investment expenditure
(average rise 86 per cent) and exports.
What benefits does external investment bring to companies?
Areas and Extent of the PE or VC’s

A rea s a n d ex ten t of the PE or V C's n on -fin a n cia l con tribution
Non-financial contribution to the Company’s Performance
to the com pa n y ’s perform a n ce
100%
90% M arket and indus try kno wledge
80%
B us ines s c o ntac ts and s trategic
70% allianc es
60% K no w-ho w
50%
S trategy
40%
F inanc ial advic e
30%
20% M anagement rec ruitment
10%
M arketing
0%
Good C o ns iderable S mall
c o ntributio n c o ntributio n c o ntributio n
62
Private equity’s key non-monetary contribution was providing financial advice. Marketing, strategy, business
contacts and strategic alliances also played a relatively significant role.
In several cases, corporate governance was high on the list, and in one case, research and development was
included as a non-financial contribution.
What is the planned exit strategy?

S tra tregy of ex is t by Priv a te Eq uity /V en ture
Strategy of Exits by
Ca pita Private Equity/Venture
l firm Capital Firm
S ale to o ther
inves to rs
17%
IP O
53%
S ale to s trategic
buyer
30%
More than half the private equity companies surveyed said launching an IPO was the planned exit strategy,
with two companies having already completed an IPO. Several companies were unsure of their exit strategy
and were considering all available options.
Timescale for Commencing the IPO Procedures

Time scale for commencing the IPO procedures
Already completed 17%
After 4 years 8%
Within 2 -4 years 42%
Within 1 – 2 years 25%
Already started 8%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
For those entities planning an exit by means of an IPO, 42 per cent said they expected this to be launched
within two to four years, while only a quarter had plans to commence an IPO within the next one to two
years.
PE investments can be seen as an intermediary step to prepare companies for an IPO. There is a relative lack
of readiness in portfolio companies in the MENA region with a large proportion of the investments requiring
several years before they are ready to consider an exit strategy.
63
Thought Leadership
Private Equity – The Bad Guys?
Ashish Dave,
Head of Private Equity, Middle East and South Asia (KPMG)
Throughout 2007, private equity globally has faced a number of new challenges, including the recent turmoil
in the debt markets. An underlying issue, particularly in the more developed markets of Europe, the UK and
the US, has been one of public perception.
Whereas private equity has historically rarely been seen outside of the financial pages of the international
press, there has been increasingly negative press in more mainstream media. Concerns have been raised about
the tax position of private equity firms, their directors, portfolio companies and investors. Trade unions have
joined others in expressing the view that the private equity business model is to take an extreme approach to
minimising costs in newly acquired businesses, often at the expense of local employees.
Prior to the negative press, private equity was under no obligation publicly to disclose details of its funds,
investments, financial results or tax position and, consequently, had largely chosen not to do so. In the
markets where the most pressure was felt, however, the private equity industry has begun to improve its
public relations with moves to communicate more transparently about its activities and, importantly, the
benefits that those activities have brought to the wider community.
Whether such moves are born of a genuine desire to take some of the ‘private’ out of private equity, or simply
an attempt to head off more rigorous outside regulation is not necessarily important. What is important is
that private equity recognises the benefits of additional public disclosure. Private equity portfolio companies
account for 20 per cent of employment in the UK and, as such, the industry must appreciate its responsibility
and accountability to the economy as a whole if it is to be allowed to continue to enjoy the fruits of its
economic success.
In the MENA region, the requirements for transparency are significantly less even than they have been in
developed markets historically. As such, and given the overall climate of confidentiality in the region, there is
relatively little publicly available data on local private equity, its activities and performance.
At present, the impact of this is simply that reports such as this one may not capture all available data and
may not present a true reflection of performance. However, there are surely benefits to all of a move away
from secrecy and unwillingness to share information.
In other markets, the image of private equity has undoubtedly suffered as a result of failing to address this
issue before it was too late. Firms are now facing a raft of potential new tax law and reporting requirements
which, if they had been more open in the past, may not have even been proposed. And what of potential
investee businesses, particularly in the region, who may have reservations about inviting private equity
investment into their companies? Additional transparency would help to demonstrate the value that private
equity can add, helping to open up more investment opportunities.
The success of private equity in the MENA region is something worth shouting about, not just to increase
profile, credibility and status among those within the private equity community, but to ensure that the
reputation of private equity is maintained and enhanced across a wider audience.
64
8.1 GVCA Overview

8.2 Board Members
8.3 Member’s Directory
GVCA Overview
GVCA is a not for profit trade and industry association for Venture Capital (VC) and Private Equity (PE) based in
the Kingdom of Bahrain to serve the whole region. Its prime role is to promote a risk-taking investment culture,
develop skills, facilitate networking, and provide relevant information and statistics on VC/PE industry.
Mission:
GVCA’s mission is to serve the VC/PE industry and foster its growth in the Region.
Goals:
1. Promote and advocate VC/PE as a vital industry, contributing to economic growth.
2. Facilitate communication and networking among stakeholders.
3. Gather and disseminate industry statistics and information.
4. Develop and promote professional and ethical codes of conduct.
5. Foster professional development and learning environment.
The Association’s activities cover several aspects of the VC/PE industry such as trends and strategies, legal/
fiscal policies and regulations, investment models, management of fund raising and structures, technology
evaluation and valuation, contracts and control rights, information/studies, early-stage funding, buyout, IPO,
and corporate venture capital, among others.
Membership:
Members of the GVCA include VC/PE companies, financial institutions, corporations, consultants, and business
development organizations, among others.
Committees:
The Association has established the following four committees to bring together members who represent their
areas of expertise to work on GVCA activities and actions:
1. Membership Committee
2. Learning & HR Committee
3. Regulation Committee
4. Information & Statistics Committee
Contact info:
Gulf Venture Capital Association
9th Floor, Al Moayyed Tower, Seef, Manama, Kingdom of Bahrain
Tel +973 17 584259 ext 333 ; Fax +973 17 564606
e-mail: gvca@batelco.com.bh ; website: www.gulfvca.org
66
GVCA Board of Directors
Mr. Abdullah Al- Subyani Oussama Tabbara

President, GVCA Vice President, GVCA
Saudi Aramco, KSA Nexia International, KSA
Imad Ghandour Mr. Mansour Al Khuzam

Information & Statistics Chairman, GVCA Membership Committee Chairman, GVCA
Gulf Capital, UAE Khazaen Venture, Kuwait
Hussein Rifai Marwan Tabbara

Regulation Committee Chairman, GVCA Treasurer, GVCA
Injazat Technology Fund, UAE Stratum, Bahrain
Ihsan Jawad Ahmad Al Sari

Board Member, GVCA Board Member, GVCA
Zawya.com, UAE Malaz Group, KSA
Wissam Kojok Khaled Fouad

Board Member, GVCA Board Member, GVCA
Silk Route, UAE
Murad Mahmoud
Board Member, GVCA
Dlala Holding, Qatar
67
GVCA Member’s Directory
ABC Bahrain Banatolia - Business Angel Network Anatolia

David Clarke Alp Aslam
david.clarke@arabbanking.com Alp@banatolia.org
Abraaj Capital Banawi Industrial Group

Frederic Sicre Waleed Al Banawi
frederic.sicre@abraaj.com waleed.albanawi@banawigroup.com
Abu Dhabi Investment Company Barclays

Robert C. Wages Lars Lind
r.wages@adic.ae lars.lind1@barclays.com
Al-Khonji Group of Companies Bayan Investment Co.

Qais Al-Khonji Bassel Abu Ali
khonji1@omantel.net.om basel@bayaninvest.com

Al-Shaikh Investments BEST Funds
Nasser Al-Shaikh Douglas
nasser@alshaikh.ae info@bestfunds.ca

Al-Tawfeek Company For Investment Funds Ltd. Boston BioCapital, LLC
Dhafer S. Al-Qahtani Hoda Abou Jamra
d.alqahtni@altawfeek.com hoda@bostonbiocapital.com
Al-Tuwairqi Bridge Technologies

Tariq Barlas Ehab Osman Khalil
barlas@altuwairqi.com.sa Ehab@bridgetechnologies.com

Al-Tuwairqi Buraaq Holdings India PVT LTD
Sajjad Haider Zeenat
Syed.sajjad@altuwairqi.com.sa business@buraaqgroup.com

American University in Dubai Bushnak Group
Rod Monger Adil
Rmonger@aud.edu info@bushnak.com

Ana Balat Capital Management Limited Carnegie Global Ventures
Dr YC van Dongen Lisa LaBonte
+90 212 2926640 lisa@carnegieventures.com
Arcapita Catalyst PE
Nael Mustafa Ennis
nmustafa@arcapita.com ennisr@catalystpe.com

ASA Consultants Chicago Capital Group, LLC
Adel Saudi Waseem Anwer
aasaudi@hotmail.com wanwer@ChicagoCapitalGroup.com
68
Citadel Capital East West Holdings Pvt. Ltd.

Magda Habib Brian Walsh
mhabib@citadelcapital.com bw@ewwh.com
Dadabhai Group Elshawi Electronic

Qutub Dadabhai Essam Shawi
qutub@dadabhai.com e.shawi@uttc.com
Delta Partners Emc2 Management Consulting Corporate

Morten Kvammen Finance, Mergers & Acquisitions
mkv@deltapartnersgroup.com Matthias Eckert
matthias@emc2invest.com
Denning and Company, LLC
Paul Denning G.S.P.HOLDING PLC (GROUP)
pdenning@denningandcompany.com Rajeb
info@gspholdingplc.com
Devcorp International
Ibrahim Salem Al Mishari GA Consult
ialmishari@devcorpint.com George Azar
gaconsult@terra.net.lb
DevCorp International
James Green Berg Glacier Technologies, Inc.
jgreenberg@devcorpint.com Mansur Abahusayn
mabahusayn@glaciertec.com
Devcorp International
K R Kumar Global Investment House
krkumar@devcorpint.com Shailesh Dash, CFA
shaileshdash@global.com.kw
Dinar Investment House Ltd.
Azhar Abd Aziz Global Path Capital
info@gdinar.com Swatick
swatick@globalpathcapital.com
Dlala Brokerage & Investment Holding (Q.S.C.)
Murad M. Mahmoud Global Trade and Investment Services
mmahmoud@dlalaholding.com Fulvio
info@globaltradeinvestment.com
Draper Investment Company
Don Plaisted Global Venture Capital Holdings
info@draperco.com Luay
info@gvch.com
Dubai Investments
G Bala Subramanyan Gulf Capital
gbala@dubaiinvestments.com Imad Ghandour
ighandour@gulfcapital.com
Ernst and Young
Omar Kamal Gulf Investors Group Limited
omar.kamal@ey.com.bh Andrew
andrew@gulfinvestors.com
69
Gulf Technology Partners ITCL

Ahmad Bayaa Ahmed
ahmadbayaa@gulftechnologypartners.com info@itcl.net
Hormud Telecom Jawad Habib-Bahrain

Ahmed Galool Jose Martin
galool@hotmail.com jose@bdojawadhabib.com
Injazat Capital Jina Partners

Hussein Rifai Swatick
hrifai@injazatcapital.com swatick@jinapartners.com
Insiab Kanoo
Raad Bader Kanoo
info@insiab.com bader@kanoosa.com
Integration Capital & Trade, Inc. Kanz for Consultation and Training
Aran Brosnan Jamal H. Almutair
abrosnan@integrationcap.com mutairjh@kanz.com.sa
Integration Capital & Trade, Inc. Khazaen Venture Capital

Joseph Mansour AlKhuzam
abrosnan@integrationcap.com mansour@khazaen.com
Intersearch King Abdulaziz University

John Adnan Soufi
jr@intersearch.ae asoufi@kau.edu.sa
Investcorp Bank Kipco Asset Management Co.

Ramzi Abdel Jaber Ahmad
rabdeljaber@investcorp.com info@kamconline.com
Investia Venture Capital Krol Spirits, LLC

Samir Elaily Philip
haidy@investiaco.com Krolspirits@aol.com
ISI Emerging Markets - Euromoney II KPMG

Ahmet Kayhan Ashish Dave
akayhan@securities.com ashishdave@kpmg.com
Islamic Corporation for the Liquid Crystal

Development of Private Sector Gerard Rego
Dr Ali Soliman gerard@liqwidcrystal.com
aasoliman@isdb.org
M’Sharie LLC
Ithmar Capital Abdul Aziz Serkal
Faisal Belhoul +971 4 3379333
Tel: +971 4-282-5555 ; Fax: +971 4-283-1155
70
Malaz Group NVCI GmbH

Abdulaziz Jazzar George Otterbacher
ajazzar@malazgroup.com +49 711 22254123
Malaz Group Oxford Capital Partners Ltd.

Ahmad M. Al-Sari Edward Mott
aalsari@malazgroup.com emott@oxcp.com
Malaz Group Parsa Financial Planners Inst.

Dr Fahad Al Mubarak Ramin
falmubarak@yahoo.com admininfo@iranfp.com
Millennium Private Equity Private Equity & Venture Capital

Izzet Guney Paul Mc Namara
izzet.guney@mfcorp.ae paul@cpidubai.com
MISR International Qatar Science & Technology Park

Mohamed Mahmoud Hussein Paul Field
mhussin@yahoo.com pfield@qstp.org.qa
Motasem Khashoggi Law Firm Real Time Enterprise Venture Capital

Hani Najam
hani@khashoggilaw.com naj@realtimeenterprise.com
Munshaat Real Estate Co. RNB Group of Companies

Mostafa Agamy Vinod Kumar
magamy@hotmail.com vinod@rnbgroup.net
National Bonds Corporation PJSC SAGIA

Nasser H. Al-Shaikh Chams-Eddine Asli
nasser@alshaikh.ae Casli@sagia.gov.sa
National Industries Group Holding Saudi Arabian Airlines

Hetaf Khajah Hani Al Jahdali
investmgr@nig.com.kw +966 2 6225610
NBK Capital Saudi Aramco

Samir Assaad Abdulla Al Subyani
+971 4 3652806 abdullah.subyani@aramco.com
Nexia Saudi Aramco

Oussama Tabbara Hassan A. Buhlaigah
oussama@tabbara.com.sa hassan.buhlaigah@aramco.com
Noor Financial Investment Company Saudi Aramco

Ahmed Farooq Basil A. Abul-Hamayel
farooq@noorinvestment.com basil.abulhamayel@aramco.com
71
Saudi Aramco TAIB Bank

Khaled Al Falih Salah Saleh Sultan
khalid.falih@aramco.com sultan@taib.com
Saudi Aramco The Ascent Group

Sami Al-Mukhaizeem Peggy Farley
sami.mukhaizeem@aramco.com peggy.farley@ascentcompanies.com
Saudi Aramco The National Investor

Jareer M. Abdulbaqi Yehya Jalil
jareer.abdulbaqi@aramco.com yjalil@tni.ae
Saudi Economic Development Co. Trans-Arabian Creative Communications

Dr. Adnan Soufi Phil Wengerd
+966 2 6066556 phil.wengerd@traccs.net
Selby Ventures TVM Capital GmbH

Marco Dr. Helmut Schuehsler
marco@selbyventures.com schuehsler@tvm-capital.de
SHUAA Partners Wafik Abdel-Fattah CPA

Eyad Dowaji Wafik Abdel Fattah
+971 4 3303600 wafik@link.net
Silk Route Capital Group Zawya

Wissam Kojok Ihsan Jawad
wissam@silkroutegroup.com ihsan@zawya.com
Stratum
Marwan Tabbara
tabbara@stratumwll.com
Suchefort & Partner

D. Emanuel
info@Suchefort-Partner.de
Swicorp Capital
Talha-Khan Aquil
taquil@swicorp.com
Swicorp Capital
Jean-Guillaume Habay
jhabay@swicorp.com
Swicorp Capital
Marie Miller
mmiller@swicorp.com
72
9 Directory of Private Equity firms in MENA
Directory of Private Equity firms in MENA
Abraaj Capital Injaz Mena Investments

Abu Dhabi Investment Company Injazat Capital
Abu Dhabi Investment House Instrata Capital BSC (c)
Accelerator Investcorp Bank B.S.C.
Al Arabi Investment Group Ithmaar Bank
Al Futtain Real Estate Ithmar Capital
Al Madina Financial and Investment Services KGL Investment Cayman LTD
Al Tawfeek Company for Investment Funds Kipco Asset Management Company (KAMCO)
Amwal Al Khaleej Kuwait Finance and Investment Company
Athar Al Majd Holdings Kuwait Finance House (Bahrain)
Atlas Investment Group Lebanon Invest Asset management SAL
Attijari Finances Corporation Levant Capital
BMCE Bank Malaz Group
BMG Financial Advisors Markaz
Boubyan Bank MENA Advisors Limited
Byblos Bank Millennium Finance Corporation
Citadel Capital National Commercial Bank
Concord International Investments National Technology Enterprises Company
Corecap NBK Capital
Corporate Finance House Noor Financial Investment Company
Daman Securities Qatar Capital Partners LLC
Deutsche Bank Rasmala
Dubai International Capital Ryada Capital
Dubai Islamic Bank Sabre Abraaj Management Company
Dubai Ports World Sana Capital
EFG-Hermes Private Equity Shuaa Partners
Emerging Markets Partnership (Bahrain) Societe Tunisienne d’Investissement
Evolvence Capital a Capital Risque (Tuninvest)
Foursan Group Swicorp Financial Advisory Services
Global Investment House The Carlyle Group
Gulf Capital The GCC Energy Fund Managers Limited
Gulf Finance House The National Investor
Hamilton Lane Tuareg Capital
HBG Holdings Unicorn Investment Bank
HSBC Private Equity (Middle East) Venture Capital Bank
74
Abraaj Capital Amwal Al Khaleej

PO Box 504905, Level 7, PO Box 59115, Riyadh, KSA 11525
Emirates Towers Offices Tel: + 9661 216 4666
Dubai, United Arab Emirates Fax: + 9661 216 4777
Tel: +971 4-319-1500
Fax: +971 4-319-1600 Athar Al Majd Holdings
PO Box 305801, Riyadh 11361, Saudi Arabia
Abu Dhabi Investment Company Tel: +966 1-211-1515
National Bank of Abu Dhabi Building, Fax: +966 1-211-1616
Khalidiya, Tariq Bin Ziad Street,
P.O. Box 46309 Abu Dhabi, United Arab Emirates
Tel: +971 (0) 2 665 8100 Atlas Investment Group
Fax: +971 (0) 2 665 0575 PO Box 143156, Amman 11814, Jordan
Tel: +962 6-552-2239
Abu Dhabi Investment House Fax: +962 6-5519064
PO Box 106699,
Abu Dhabi, United Arab Emirates. Attijari Finances Corporation
Tel: +971 2-681-1233 15 bis, Boulevard Moulay Youssef
Fax: +971 2-681-1844 20000, Casablanca, Morocco
Tel: +212 22-476435
Al Arabi Investment Group Fax: +212 22-476452
PO box 143156,
Amman 11814 BMCE Bank
Tel: + 9626 55 222 39 140 Avenue Hassan II, BP 13425
Fax: + 962 655 190 64 20001 Casablanca, Morocco
Tel: +212 22-200325
Al Futtain Real Estate Fax: +212 22-264920
PO Box 159, Dubai, UAE
Tel: + 9714 2119 222 BMG Financial Advisors
Fax: + 9714 2119 299 PO Box 52972, 5th Floor, Al Mukmal Plaza
Palestine Rd, Jeddah 21573, Saudi Arabia
Al Madina Financial and Investment Services Tel: +966 2-668-1777
PO Box 171, Ruwi 112, Oman Fax: +966 2-668-1888
Tel: +968 2-481-8844
Fax: +968 2-481-8500 Boubyan Bank
PO Box 25507, Safat 13116, Kuwait
Al Tawfeek Company for Investment Funds Tel: +965 232-5000
PO Box 430, Fax: +965 245-4263
Jeddah 21411,Saudi Arabia
Tel: +966 2-617-1003 Byblos Bank
Fax: +966 2-674-4255 Byblos Bank Tower
Elias Sarkis Avenue, Achrafieh
PO Box 11-5605, Beirut, Lebanon
Tel: +961 1-335200
Fax: +961 1-339436
75
Concord International Investments Dubai International Capital

9 Hood Al Laban Street, Garden City, PO Box 72888, The Gate, East Wing 13th Floor
Cairo 11451, Egypt Dubai, United Arab Emirates
Tel: +20 2-792-3861 Tel: +971 4-362-1888
Fax: +20 2-792-3864 Fax: +971 4-362-0888
Citadel Capital Dubai Islamic Bank

Nile Plaza, 1089 Corniche El-Nil PO Box 1080, Dubai, United Arab Emirates.
Cairo, Egypt Tel: +971 4-295-3000
Tel: +202 27914440 Fax: +971 4-295-4111
Fax: +202 2791 4448
info@citadelcapital.com
Dubai Ports World
PO Box 17000, Dubai, United Arab Emirates.
Corecap Tel: +971 4-881-5555
PO Box 66916 Fax: +971 4-881-1331
Dubai, UAE
Tel: +971 4 391 0627
EFG-Hermes Private Equity
Fax: +971 4 390 4361
58 Tahrir Street, Dokki, Giza 12311, Egypt
Tel: +20 2-338-3626
Corporate Finance House Fax: +20 2-338-3616
9th Floor, Gefinor Center Block B
Clemenceau Street, PO Box 113-7008, Emerging Markets Partnership (Bahrain)
Beirut, Lebanon PO Box 11385, Manama, Bahrain
Tel: +961 1-747606 Tel: +973 17-549333
Fax: +961 1-747247 Fax: +973 17-537660
Daman Securities Evolvence Capital

P O Box 9436, Dubai, United Arab Emirates PO Box 31309, Dubai, United Arab Emirates
Tel: +971 4-332-4140 Tel: +971 4-332-4033
Fax: +971 4-332-4240 Fax: +971 4-332-4013
Delta Partners Foursan Group

Al Shatha Tower 1, PO Box 143154
Offices 8-9, 12th floor Amman 11814, Jordan
Dubai Internet City, Dubai, United Arab Emirates Tel: +962 6-562-4562
Tel: +971 (0) 4 369 2999 Fax: +962 6-562-4263
Fax: +971 (0) 4 368 8408
Global Investment House
Deutsche Bank Al Mirkab, 2nd Floor, Souk Al Safat Bldg
Dubai International Financial Center Abdullah Al-Mubarak Street, PO Box 28807
PO Box 504902, Safat 13149, Kuwait
Dubai, United Arab Emirates. Tel: +965 240-0551
Tel: +971 4-361-1700 Fax: +965 240-0661
76
Gulf Capital Intel Capital

JSC Fujeira National Bank Tower, Building No. 5, Dubai Internet City
15th Floor Salam Street, P.O. Box PO Box 500032, Dubai, UAE
27522Abu Dhabi, UAE
Tel +971 2 6942700 ; Fax +971 2 6942703 Investcorp Bank B.S.C.
PO Box 5340,
Gulf Finance House Manama, Kingdom of Bahrain
Al Salam Tower, PO Box 10006 Tel: +973 17532000
Manama, Bahrain Fax: +973 17530816
Tel: +973 17-538538
Fax: +973 17-540006 Ithmaar Bank
PO Box 2820, Addax Tower,
HBG Holdings Limited 10th floor Seef District, Kingdom of Bahrain
Level 27, Al Moosa Tower II, Sheikh Zayed Road
Dubai, United Arab Emirates Ithmar Capital
Tel: +971 (4) 331 4133 ; Fax: +971 (4) 331 4134 PO Box 5527,
Email: info@hbgholdings.com Dubai, United Arab Emirates
Tel: +971 4-282-5555
HSBC Private Equity (Middle East) Fax: +971 4-283-1155
PO Box 4604,
Dubai, United Arab Emirates. Kipco Asset Management Company
Tel: +971 4-507-7333 PO Box 28873, Safat 13149,
Fax: +971 4-353-4583 Kuwait
Tel: +965 805885 ; Fax: +965 241-9611
Injaz Mena Investments
Zayed 2nd Street, PO Box 107394 Kuwait Finance and Investment Company
Abu Dhabi, United Arab Emirates P.O. Box 21521, Al Murqab - Altaf Complex
Tel: +971 2-672-8400 Safat, Kuwait, 13037 KWT
Fax: +971 2-672-0011 Tel: +965889000
Fax: +9652420174
Injazat Capital
PO Box 502009, Dubai Media City Kuwait Finance House (Bahrain)
Dubai, United Arab Emirates PO Box 2066,
Tel: +971 4-391-1475 Manama, Bahrain
Fax: +971 4-391-1406 Tel: +973 17-221666 ; Fax: +973 17-221600
Instrata Capital BSC (c) Levant Capital

P.O. Box 26300, Office 1301 Fairmont Building,
Manama, Kingdom of Bahrain Sheikh Zayed Road,
Tel: +973 17388 188 Dubai,UAE
Fax: +973 17388 177 Tel:+97143319788 ; Fax:+97143319789
Email: enquiries@instratacapital.com Info@levantcapital.com
77
Malaz Group Qatar Capital Partners LLC

PO Box 66633, P.O. Box 23109,
Riyadh 11546, Saudi Arabia. Doha, Qatar
Tel: +966 1-460-1644 Tel: +974 494 5474
Fax: +966 1-460-0143 Fax: +974 483 9982
Markaz Rasmala
Kuwait Financial Centre «Markaz» Dubai International Financial Centre
Universal Tower, Ahmad Al-Jaber St, Sharq, Kuwait The Gate Village, Building 10, Level 1
Tel: +965 2248000 P.O. Box 31145,
Fax: +965 2425828 Dubai, United Arab Emirates
Postal Address: P.O. Box 23444, Tel: +971 4 363 5600
Safat 13095, State of Kuwait Fax: +971 4 363 5635
Millennium Finance Corporation Ryada Capital

Dubai International Financial Center, The Gate, PO Box 29086,
East Wing 2nd floor, PO Box 121299, Dubai, UAE Safat 13151, Kuwait
Tel: +971 4-363-4200 Tel: +965 491-0191
Fax: +971 4-362-0540 Fax: +965 299-7882
National Commercial Bank Sabre Abraaj Management Company

PO Box 3555, Level 7, Emirates Towers Offices
Jeddah 21481, Saudi Arabia. Post Box 504905,
Tel: +966 2-646-4999 Dubai, United Arab Emirates
Fax: +966 2-644-6468 Tel.: +9714 319 1500
Fax: +9714 319 1600
National Technology Enterprises Company
PO Box 2294, Shuaa Capital / Shuaa Partners
Safat 13023, Kuwait Emirates Tower Level 28, Sheikh Zayed Road
Tel: +965 240-6340 P.O.Box 31045,
Fax: +965-240-5926 Dubai, United Arab Emirates
Tel: +971 4-330-3600
NBK Capital Fax: +971 4-330-3550
PO Box 4950,
Safat 13050, Kuwait Societe Tunisienne d’Investissement
Tel: +965 224-6903 a Capital Risque (Tuninvest)
Fax: +965 224-6904 Immeuble Iris, Les Berges de Lac
1053 Tunis, Tunisia
Noor Financial Investment Company Tel: +216 71-862311
Al-Kharafi Towers, 10th and 11th Floors Fax: +216 71-862805
Osama Bin Munqes St., Qibla
P.O. Box 3311
Safat 13034 Kuwait
Tel: +965 232-3333 ; Fax: +965 232-3330
78
Swicorp Financial Advisory Services

Kingdom Tower, 49th Floor
King Fahd Road, PO Box 2076
Riyadh 11451, Saudi Arabia
Tel: +966 1 211 0737
Fax: +966 1 211 0733
info-riyadh@swicorp.com
The Carlyle Group

Dubai International Financial Centre
Precinct Building 3, P.O. Box 506564
Dubai, United Arab Emirates
Tel: +971 4 427 5600
Fax: +971 4 427 5610
The National Investor

TNI Tower, Zayed Street, Khalidiya
PO Box 47435,
Abu Dhabi, United Arab Emirates
Tel: +971 2-619-2300
Fax: +971 2-619-2400
Tuareg Capital
Bahrain (Mailing):
Al Matrook Building, Diplomatic Area,
PO Box 11544,
Manama, Bahrain
Tel: +973 1753 7277
Unicorn Investment Bank

PO Box 31700,
Manama, Bahrain
Tel: +973 17-566000
Fax: +973 17-566001
Venture Capital Bank

PO Box 11755,
Manama, Bahrain.
Tel: +973 17-514451
Fax: +973 17-514441
79
10 Sponsors’ Profiles
Zawya.com
Zawya is an online business information and community platform focused on the Middle East. Headquartered
in Dubai, we serve over 250,000 business professionals.
We help investment professionals understand, monitor and asses opportunities across the region through our
Zawya Investor service. The service offers the following features:
• Exclusive live business news from Zawya Dow Jones

• Corporate Monitor, with detailed information on 12,000+ companies in the Middle East
• Hand picked news, analysis and reports from across the region
• Comprehensive stock market data, corporate actions and company fundamentals
• Macroeconomic forecasts
• All inclusive Monitors covering
Private Equity*
IPOs
Global Sukuk
Mutual Funds
*Zawya Private Equity Monitor
Zawya’s Private Equity Monitor covers private equity investments in the Middle East and North Africa, and
tracks approximately USD 25 billion in private equity capital, over 80 regional private equity players, and
provides information on more than 270 transactions.
82
Qatar Science & Technology Park
Qatar has traditionally been a country that imported its technology and out-sourced its research. A decade
ago it set about reversing this situation and transforming itself into a knowledge economy. Qatar Science &
Technology Park is helping to deliver that vision.
QSTP is a home for technology-based companies from around the world, and an incubator of start-up
enterprises. We offer companies the ideal environment to develop their technology and deliver it to the
thriving Middle East marketplace.
That environment includes first-class offices, lab space and support programs dedicated to research and its
commercialisation. We are a free-trade zone, making it easy and attractive to establish a technology-based
company in Qatar. And most importantly, as part of the renowned Qatar Foundation founded by the Emir of
Qatar, we are located alongside campuses of leading universities such as Carnegie Mellon, Cornell and Texas
A&M.
QSTP is being implemented and managed by ANGLE Technology. Its support for commercialisation includes
«proof of concept» grants for demonstrating the viability of innovations and, in 2008, venture-capital finance
for launching tech start-ups in Qatar.
Bringing together innovative companies and world-class resources, QSTP is a place where research goes to
work.
83
Saudi Aramco
Saudi Aramco is the fully integrated, global petroleum enterprise of the Kingdom of Saudi Arabia. The company
has operations in exploration, production, refining, marketing and international shipping. Building on a legacy
of reliability and innovation that dates back almost 75 years, Saudi Aramco today is among the world’s leaders
in the production of crude oil and natural gas, and the exporting of crude oil and natural gas liquids. The
company will celebrate its 75th anniversary during 2008.
Established by Royal Decree in 1988, Saudi Aramco assumed the responsibilities of its predecessor, the Arabian
American Oil Company (Aramco), whose origins date back to the original 1933 oil concession granted by King
‘Abd al-‘Aziz Al Sa’ud. During the 1970s, the Saudi Government purchased Aramco in stages from its original
owners, a consortium of U.S. oil companies, acquiring 100 percent of the assets by 1980.
The company manages about one-quarter of the world’s proven conventional oil reserves, about 260 billion
barrels, the most of any company in the world. Since it first found crude oil in commercial quantities in Saudi
Arabia’s Eastern Province in 1938, the company has discovered about 90 oil and gas fields throughout the
Kingdom and in its offshore waters. More than one-fourth of the discoveries have been made since 1989. In
2006, Saudi Aramco produced an average of 8.9 million barrels per day (bpd) of crude oil, and is developing
new increments to increase its sustainable production capacity to 12 million bpd by the end of 2009. The
company manufactures and markets a wide range of petroleum products from oil and gas, both domestically
and internationally.
Saudi Aramco’s five domestic refineries are at Ras Tanura, Riyadh, Jiddah, Rabigh and Yanbu’. Its refining and
marketing partnerships in Saudi Arabia are Saudi Aramco Mobil Refinery Co., Ltd., (SAMREF) in Yanbu’ and
Saudi Aramco Shell Refinery Company (SASREF) in Jubail. Saudi Aramco has international affiliations with
Motiva Enterprises LLC in the United States, S-Oil Corporation in the Republic of Korea, Petron Corporation in
the Philippines, and Showa Shell Sekiyu K.K., in Japan. The company has a total worldwide refining capacity
of almost 3.7 million bpd and is expanding that capacity domestically and internationally through joint
and equity ventures. PetroRabigh, Saudi Aramco’s joint venture refining and petrochemical complex with
Sumitomo Chemical Co. of Japan, is scheduled for start-up on the Kingdom’s Red Sea coast in 2008. There are
also two joint ventures, Quingdao and Fujian, under development in China.
The company’s Master Gas System is one of the largest gas gathering, processing and distribution networks of
its kind in the world. Gas used as both fuel and feedstock is a major factor in the country’s diversification and
economic development activities. Saudi Aramco also owns and operates the Kingdom’s nationwide petroleum
product distribution network.
For more than seven decades, Saudi Aramco has reliably supplied energy to the world, and is dedicated to
fulfilling this commitment well into the future.
84
Abraaj Capital
Abraaj Capital is the premier investment firm specialising in private equity investment in the Middle East,
North Africa and South Asia (MENASA) region. The management team has brought together some of the most
compelling and successful transactions in the history of leveraged acquisitions across the region.
With USD 5 billion of assets currently under management, Abraaj has pioneered institutionalizing private
equity practice in the region and is setting trends and benchmarks for others to follow.
Winner of industry awards including ‘Middle East Private Equity Firm of the Year’ from Private Equity
International (2006 & 2007), the Banker Middle East Award for ‘Best Private Equities Institution’ in 2006 and
for ‘Outstanding Contribution to Financial Services in the Middle East’ in 2007 and ‘Best Private Equity House’
at the World Private Equity Awards, MENA in 2007. Arabian Business recognized Abraaj among the 50 Most
Admired Companies in the GCC in 2007. Abraaj is also the first pure private equity firm to be registered by the
DFSA to operate out of Dubai International Financial Centre (DIFC).
Apart from managing its six private equity funds, Abraaj Capital Holdings Limited (ACHL) itself is extremely
well capitalized, with an issued share capital of USD 1 billion. Its 133 professionals come from 27 nationalities
and achieve a coverage that spans the MENASA region.
For more information please visit www.abraaj.com
85
Abu Dhabi Investment Company
Abu Dhabi Investment Company (ADIC), the first investment company in the United Arab Emirates, is one
of the leading financial services firms in the region. Established by Emiri Decree on February 24, 1977, the
company was majority owned by Abu Dhabi Investment Authority (ADIA) and National Bank of Abu Dhabi,
before ADIA’s shares were transferred to Abu Dhabi Investment Council in 2007.
Since 1977, ADIC has delivered excellence in treasury and credit services, loan syndication, equity and debt
underwriting, financial advisory, asset management and brokerage across a range of asset classes. As a result,
we have earned a reputation for professionalism, integrity, innovation and market knowledge.
Pursuing a focused approach, ADIC today leverages its investment expertise across four strategic areas: Asset
Management, Private Equity, Real Estate and Infrastructure. In this way, we are able to offer targeted products
and services to meet specific client requirements in markets across the globe, all while delivering superior
risk-adjusted returns.
With extensive knowledge of the Middle East and North Africa investment environment; unrivalled access
to primary information on regional companies, both large and small; an understanding of the micro and
macro economic environment and track record across asset classes, ADIC is an ideal investment partner for
institutions and high net worth individuals based in the region and beyond.
86
Barclays
Over the past 300 years, Barclays Bank has built one of the largest financial services institutions in the world.
Operating in over 60 countries and employing 127,000 people, we move, lend, invest and protect money for
over 27 million customers and clients.
Our aim is simple: to create value for our customers and clients. We offer a full range of services, including
retail, corporate and private banking, credit cards, investment banking, investment management and wealth
management.
Within the Gulf region, Barclays has been a member of the UAE business community for more than 30 years.
We continue to invest heavily in the region and expand the range of services offered to our customers and
clients here.
Our commercial clients range from multinational subsidiaries to regional and domestic Gulf corporations. Our
service teams, based in Dubai and Abu Dhabi, create value for our clients by combining in-depth local market
knowledge with Barclays global reach. Services include cash management, trade finance, structured project
and property finance, and leveraged finance.
Our Dubai-based leveraged finance team works closely with our established leveraged finance operations in
Europe, and specialises in structuring and arranging debt in support of buy-outs in the GCC region.
Barclays Capital, our investment banking division, provides large corporate, government and institutional
clients with a complete range of financial products and services, including bonds, collateralised finance,
derivatives, equity products, futures and securitisation. With the regional base in the Dubai International
Financial Centre, Barclays Capital is a part of an international network of offices in 26 countries, giving
us virtually unlimited global reach and enabling us to meet the needs of our clients within the UAE and
throughout the Middle East and North Africa region.
Barclays Capital’s expertise and excellence have been recognised by a number of the industry’s most prestigious
awards, including Financial News magazine’s ‘European Investment Bank of the Year’ in November 2005 and
IFR magazine’s ‘Bank of the Year’ in January 2005.
Contact Details:
Lars Lind
Director
Head of Barclays Leveraged Finance UAE & Gulf
E-mail : lars.lind1@barclays.com
Direct : +971(0)4 509 8106
Fax : +971(0)4 357 0975
Mobile : +971(0)50 453 9766
Address : P.O. Box 1891, Khaled Bin Waleed Street, Dubai, UAE
Registered in England and Wales (registered no. 1026167).
Registered Office: 1 Churchill Place, London, E14 5HP, United Kingdom
www.barclays.uae / www.barclays.com
87
Citadel Capital
Citadel Capital: The Art of Value Creation
Citadel Capital is a Cairo-based private equity firm focused on acquisitions, turnarounds and greenfields in the
Middle East and North Africa. The firm has capitalized on key opportunities in sectors including oil and gas,
cement, mining, transportation and, most recently, a strategic foray into the foods sector.
With USD 8 billion in investments currently under control, Citadel is committed to creating value for its
shareholders. The firm, formed in 2004 as a two-person partnership, is now a thriving regional practice with
six managing directors, a proven track record of value creation and an expanding geographic footprint. The
firm carefully selects investments for their potential to create value and spur market growth. By focusing on “deals
that make sense,” Citadel Capital strives to earn the respect of regional industry veterans and global giants alike.
With each acquisition, the firm engineers opportunities to turn local companies into regional players. That strategy
has paid off for Citadel Capital’s co-investors in successful deals including EFC (Egyptian Fertilizer Company)
and ASEC (Arab Swiss Engineering Company). Citadel-led restructuring allowed each to ramp up its production
capacity and join the ranks of top regional players within a short period of the initial investments.
Citadel Capital prefers to focus on larger investments with total value of at least USD 100 million and clear
exit strategies. The firm co-invests with its clients in every deal, thereby sharing equally in risks and returns.
Citadel Capital aims to be a trusted partner of the communities in which it operates, building employee stock
ownership plans into its transactions and investing in local development initiatives through its corporate
social responsibility programs, which focus heavily on education.
88
Delta Partners
Delta Partners is a Dubai-based, integrated advisory and investment firm focused on Telecom, Media and
Technology (TMT) in high growth markets. We deliver value to our clients and investors through exclusive
sector focus and the synergies of our three different business lines: Advisory, Corporate Finance, and Private
Equity.
Our Advisory practice partners with C-level clients in telecom operators, vendors, and other TMT players to
help them address key strategic issues affecting their business. Our Corporate Finance team has already been
involved in several telecom transactions in the region, offering a differentiated value proposition to buyers
and sellers leveraging our in-depth industry expertise. Delta Partners is also managing its USD 80 million
Delta Partners MENA Telecom Fund, a Private Equity fund targeting telecom investment opportunities in the
Middle East and North Africa.
At Delta Partners we believe our integrated business model is truly unique and offers significant value to
both our fund investors and investee companies at each stage of the investment cycle. Through our advisory
practice, we are working with telecom clients in over 15 countries in the Middle East and Africa, which give
us unparalleled access to deals across the region. Our deep understanding of industry trends and dynamics
enable us to make superior investment decisions and reduce risk. Finally our industry focus allows us to take
a more hands-on approach with investee companies helping them take key strategic decisions to ensure high
growth.
Delta Partners MENA Telecom Fund is currently looking for investment opportunities in companies seeking
growth capital within the different sub-verticals of the TMT sector across Middle East and North Africa.
For more information please contact us at privateequity@deltapartnersgroup.com.
89
Global Investment House
Global Investment House “Global” has a successful private equity fund management business backed by one
of the largest teams in the MENA region with more than 30 well qualified professionals. The team members
have diverse sector experience and have worked in countries across the MENA and South Asia. The team has
an aggregate work experience of over 200 years.
Global has been in the private equity space since 1999, and holds a highly successful track record. The private
equity fund management team was formally defined in 2005, and in a rather brief period of 3 years, the team
came to managing USD 1.6 billion through 4 private equity funds, namely, Global Private Equity Fund, Global
Opportunistic Fund, Global Opportunistic Fund II and Global Buyout Fund L.P. Global Buyout Fund, the largest
buyout fund in the region, was awarded the “Best Fund of the Year 2007” at The Private Equity World Awards,
MENA.
The team has invested near USD 1 billion across 47 transactions across 14 sectors in MENA, Turkey, South
Asia & China during the past 3 years. Its core competency lies in developing, investing and successfully
exiting private equity investments in the MENA with special focus on the GCC member countries across
diversified sectors including financial services, real estate, education, healthcare and hospitality. It has also
been successfully investing in Turkey, India and China.
90
Gulf Capital
Gulf Capital is a leading regional investment company, focused on the GCC and MENA Region.
Incorporated in early 2006 as a Private Joint Stock Company (Pvt. JSC) in Abu Dhabi, Gulf Capital has raised
AED 1,225 Billion (USD 330 Million) from 300 of the most prominent businessmen, institutions and families
in the GCC.
Gulf Capital seeks to acquire sizeable or controlling stakes in profitable and rapidly growing companies with
high quality management, particularly those that can retain a sustainable competitive advantage. The group
seeks to invest in a select number of growing industries, notably those that are undergoing consolidation. Gulf
Capital is rapidly emerging as a leader in the Middle East private equity industry, with a mission to enhance
shareholder value through partnering with portfolio companies to achieve exceptional growth.
91
Injazat Capital
Injazat Capital Limited is a leading asset management and investment banking financial institution, delivering
innovative solutions to institutional and individual investors.
Registered in the renowned Dubai International Financial Centre, and regulated by Dubai Financial Services
Authority, Injazat Capital delivers a range of Sharia compliant financial services that include fund management,
investment banking, corporate advisory and other innovative financial services.
Private Equity Fund Management

Injazat Capital focuses on providing Private Equity Fund Management Services to our investors through a
regulated fund structure. Our funds are regulated as Collective Investment Schemes (“CIS”) under the Bahrain
Monetary Authority (“BMA”), Dubai Financial Services Authority (“DFSA”), or another recognised regulatory
environment.
Investment Banking
Injazat Capital structures and executes diverse and innovative public and private market transactions for
corporations, financial institutions and governments. We provide our clients with the broadest possible range
of opportunities in the Middle East and North Africa Region. Our global relationships, coupled with our
unique understanding of local economies, industries and cultures, help us consistently deliver high quality
advice and service time.
Origination and Raising Funds

Injazat Capital offers origination and capital raising services to corporations and governments regionally. Our
Origination team has the insights and relationships to deliver world-class private funding. Having in-depth
understanding of client needs as well as the market, industry and business environment, we design customised
solutions and provide our clients with access to high-quality private and strategic investors regionally.
92
Ithmar Capital
Ithmar Capital is a GCC focused private equity specialist, managed by a highly experienced team of industry
leaders, with local and international expertise and connectivity.
From its offices in Dubai and London, Ithmar Capital targets exceptional growth capital and buyout
opportunities throughout the GCC region and overseas, provided the GCC region represents a strategic market
for the overseas companies.
Ithmar Capital is actively committed to using its high profile regional partnerships and international
connectivity to strongly support the success of its portfolio companies.
Ithmar Capital is the first regional private equity specialist that has entered into a strategic alliance with
global private equity leader – 3i. The partnership combines local and regional knowledge and network with
true global reach and expertise.
With a focus on innovation, Ithmar Capital is at the cutting edge of its industry, always looking at new ways
of adding value to its partners and portfolio companies.
Ithmar Capital is currently managing proprietary investments in excess of $ 500 million in some of the most
attractive sectors in the region such as oil and gas, construction, healthcare and education, and is planning to
launch its third fund, (Ithmar Fund III) targeting $1Billion by the 2nd half of 2008.
Ithmar Capital’s vision is to be the leading regional private equity firm in terms of conduct and return.
For further information please visit Ithmar Capital online at: www.ithmar.com
or contact: Nada Lotfy, Marketing Director, Ithmar Capital Tel: +971 4 282 5555
93
NBK Capital
NBK CAPITAL
The Leading Middle East Investment Bank
NBK Capital is one of the leading investment banks in the Middle East. With offices in Kuwait, Dubai, and
Istanbul, NBK Capital is strategically placed to offer a broad range of services including investment banking,
merchant banking and investment services.
Established in 2005 a wholly owned subsidiary of NBK, the largest Kuwaiti bank and the highest-rated in
the Middle East, NBK Capital has focused on providing the highest quality investment services to its clients
and investors. In its relatively short history, NBK Capital has managed to establish a name for itself through
several major deals in various areas of the business.
The Investment Banking group, which provides M&A and financing advisory, has been involved in two of the
largest regional M&A deals in 2007 amounting to over USD 2 billion. These deals include NBK’s acquisition
of Al-Watany Bank of Egypt and the National Commercial Bank’s acquisition of Turkiye Finans.
The Merchant Banking group has also made notable strides including the first exit for the NBK Capital Equity
Partners Fund resulting in a 2.8x cash-on-cash return in only 9 months. In addition, NBK Capital launched
two new funds including a mezzanine fund and a Kuwait offset fund which will be fully operational in 2008.
The Investment Services group manages 30 investment funds with assets under management exceeding USD
10 billion. The funds are diversified into several areas including Money Markets, Equities, Islamic, Alternative
Investments, and Real Estate. To provide investors with complete investment solutions, the Investment Services
group at NBK Capital also provides research, brokerage, and asset management services.
The achievements of NBK Capital thus far demonstrate our commitment to hire the brightest talent in the
region and deliver the highest quality products to our clients and investors.
94
SHUAA Partners Ltd.
SHUAA Partners Ltd, is the private equity arm of SHUAA Capital psc. SHUAA Partners follows a systematic
investment process that is based upon the following principles:
• Pro-active generation of deal flow

• Comprehensive due diligence
• Innovative transaction structuring
• Disciplined valuation approach
• Continuous investment monitoring and value creation post-acquisition
• Careful exit planning
SHUAA Partners will identify and partner with experienced industry veterans in pursuit of investment
opportunities. Operating executives will be instrumental in the origination and due diligence processes. In
addition, SHUAA Partners’ partnership with the Operating Executives will enhance the Fund’s credibility
with business owners and management teams. Operating Executives also play a role building value post-
investment, typically assuming the role of portfolio company senior management.
The Fund will seek Operating Executives who have demonstrated success in guiding rapidly growing
companies and integrating acquisitions to achieve operating results consistently better than industry
averages.
Its inaugural fund, SHUAA Partners Fund I, L.P., held its final closing in September 2005 with commitments
of USD 200 million.
While its second fund, Frontier Opportunities Fund I, L.P., held its final close in October 2007 with
commitments of USD 100 million.
SHUAA Partners is regulated by the Dubai Financial Services Authority (“DFSA”) and is incorporated in the
Dubai International Financial Centre (“DIFC”) as SHUAA Partners Ltd.
95
The National Investor (TNI)
The National Investor (TNI)
The National Investor (TNI) is a privately owned regional investment and merchant banking group. The firm
comprises six strategic business units covering investment banking, private equity, asset management, real
estate, principal investments and investment research. In addition, the firm has an associate company, Gulf
National Securities Centre (GNSC), which provides brokerage services as a registered member of the Abu Dhabi
Securities Market and the Dubai Financial Market.
As a regional firm, TNI operates from Abu Dhabi and Dubai in the UAE and Riyadh in Saudi Arabia. The
firm provides a wide range of investment, advisory and fund management services to a substantial client
base that includes listed and unlisted companies, financial and government institutions, and high net worth
individuals.
Over the last 14 years, TNI successfully positioned itself amongst the region’s most trusted and reputed
financial institutions. With a proven track record across all of its lines of business, the firm ranks as the leading
arranger of public share offerings with total transaction value exceeding AED 11 billion.
Private Equity
TNI’s private equity practice is one of the oldest and most respected private equity franchises in the GCC.
Started in 1994, TNI has made over two dozen investments so far, and has generated an impressive realized
IRR of 38% on its private equity portfolio over a 14-year period. In recognition of its performance, TNI
received the award for “Best Institution for Private Equity” from Banker Middle East in May 2005.
TNI’s Private Equity Group is uniquely able to leverage its business relationship network and the local and
regional resources of the firm for the benefit of existing and prospective portfolio companies. TNI’s PE
professionals have a diverse mix of backgrounds including private equity, mergers and acquisitions, leveraged
finance and corporate restructuring. These professionals operate out of TNI’s DIFC-based offices in Dubai, as
well as Abu Dhabi and Riyadh.
The firm launched the TNI Growth Capital Fund (GCF), L.P., a targeted private equity fund focusing on late stage
growth capital opportunities in the GCC, North Africa, Levant and Asian subcontinent. The fund completed its
final closing in December 2007 and has currently three portfolio companies. Going forward, the firm intends
to launch multiple industry-focused fund products focusing on mid-market opportunities.
96
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Prime Sponsors:

Private Equity & Venture Capital

in the Middle East

Report Steering Committee

2 GVCA introductory message 14

5 Emerging trends of private equity in MENA in 2007

6 Sovereign Wealth Funds

7 Survey on the impact of Private Equity and Venture Capital on

8 GVCA - Gulf Venture Capital Association

9 Directory of Private Equity firms in MENA 73

By His Excellency Amr Al-Dabbagh,

By His Excellency Amr Al-Dabbagh,

1.1 Basis of Preparation

1.1 Basis of Preparation

1.2 Definitions and Assumptions

• Rumored: Funds expected to announce their intention to commence fund raising.

1.3 Data Filtering

In particular we have used the following definitions:

Funds of funds or secondaries are excluded.

Imad Ghandour Ihsan Jawad

3 KPMG introductory message

4.2 Fund profile over the last decade

Priv a te Eq uity fun ds clos edEquity

F und vintage year

F unds rais ed to date N umber o f funds rais ed to date

Source: Zawya Private Equity Monitor

A s s ets under management N umber o f funds rais ed to date

Source: Zawya Private Equity Monitor

T op 5 closed funds in 2007

Source: Zawya Private Equity Monitor

4.3 Nature and size of investments

S ize o f P E inves tment N umber o f trans ac tio ns

Source: Zawya Private Equity Monitor

5 Largest PE investm ents in 2007

Source: Zawya Private Equity Monitor

S ize o f P E inves tments N umber o f trans ac tio ns

Source: Zawya Private Equity Monitor

4.4 Percentage of funds deployed

Deployment rate of some large funds

Deploym ent rate by top funds

Source: Zawya Private Equity Monitor

Announced funds to be raised

F unds to be rais ed N umber o f funds to be rais ed

Source: Zawya Private Equity Monitor

Funds announced in 2007 greater than U S D 0.5 billion

Source: Zawya Private Equity Monitor

4.5 Focus of investments

G eographical s plit of PE Inves tments in the las t decade

Geographical Split of PE Investments in the Last Decade

Geographical Split of PE Investments in the Last Decade

E gypt S audi A rabia

Note: the above chart excludes the following investments:

F inanc ial S ervic es

S ector focus of PE inves tments in the las t decade

Note: the above chart excludes the following investments:

4.6 Rumoured funds

Y ear Fund Investm ent Focus R egion U S D m illions

4.7 Return on investments

S ale c o ns ideratio n N umber o f trans ac tio ns

Source: Zawya Private Equity Monitor

Note: Sales consideration represents exit price

E xi ts b y P E hous es duri ng 2 007