MENA Emerges as Hotspot For Private Markets Growth
A new report tracks has positioned the Middle East, alongside Asia, in the next phase of private markets, thanks to growing allocations and appetite.
The Middle East and Asia are becoming hubs for private market investment, as private investors allocate 33% of portfolios to private assets. In its ‘Private Markets Annual Report’, produced with research firm Savanta and based on a survey of over 550 affluent investors, Barclays Private Bank links the shift to rising entrepreneurial wealth and greater global capital flows. Most respondents view private markets as central to long-term financial goals, underscoring a steady move beyond public markets in search of growth and diversification.
The report states that 91% see private markets as a source of sustained capital growth and 89% cite diversification benefits, with nine out of ten calling exposure essential to their overall strategy. Appetite to increase exposure is strong: 48% of those not yet active plan to enter, while 79% of existing investors intend to boost commitments. By region, enthusiasm is highest in Africa (94%), followed by Asia (82%), the Middle East (79%), the UK (76%), and the EU (75%). The report also notes that for managers, the competitive landscape is tightening, and the challenge for managers lies in meeting shifting investor expectations through genuine innovation; as competition heightens and regulation tightens, operational excellence has become increasingly vital.
On fundraising dynamics, established general partners have collected 89% of private equity capital so far this year, up from 87.9% in 2024, while 36 first-time funds raised a combined $7.2 billion, predominantly from the United States, with additional activity in Japan, Saudi Arabia, and Luxembourg. The report added that success will hinge on expanding investor bases and product appeal, meaning that General Partners must not only refine their operations, but also broaden their appeal to family offices, wealthy individuals, and new wealth centres in regions such as the Middle East and Asia.
