Venture capital is in high demand across the Middle East and North Africa region, according to a recent report by the Global Private Capital Association (GPCA).
The sector has a strong appetite for fintech and e-commerce products, with fintech representing 23% and e-commerce accounting for 20% of all MENA venture capital investment since 2020.
GCPA highlighted consumer demand for crypto, digital payments and BNPL as the driving factors behind the thriving market in the area.
Countries with the highest demand levels included Egypt, United Arab Emirates, Pakistan and Saudi Arabia.
The report mentioned the impact of government subsidies on the tech revolution emerging from the MENA sector, diversifying the region’s economies away from oil and gas.
GCPA noted the largest private equity deal in the MENA area was the tech acquisition by Blackstone Group of UAE technology and visa outsourcing services company VFS Global for $1.1 billion in May 2022.
Private Equity activity was also led by Silver Lake’s $800 million investment into Abu Dhabi’s AI and cloud computing firm Group 42 in 2021.