UAE leads Middle East private capital markets
Dubai: BlackRock's Aladdin today released Market Evolution: The Middle East, a new report examining the region's shift from a source of global private markets capital to a destination for private capital deployment. The report identifies the UAE as the region's leading private capital market, supported by economic transformation programmes, expanding infrastructure investment and growing institutional sophistication. The report also analyses the allocations, deal activity and investor trends reshaping private markets across the Middle East and shows growing investor conviction, rising domestic deployment and expanding opportunities, particularly in technology and infrastructure. That shift is visible across the region's largest investors. Middle East sovereign wealth funds tracked by Preqin allocate 43% of their exposure to private capital, compared with 35% for their rest-of-world peers, and appetite continues to build. The share of Middle East LP investors positive on or considering private equity mandates has climbed from 70% in 2019 to 83% in 2026. Among LP investors elsewhere in the world, that figure has moved only marginally over the same period, from 60% to 61%, showing regional conviction is growing well ahead of the global baseline. Ayman Daif, Managing Director and Head of Aladdin Business Development for the Middle East, Central Asia, Africa and India, said, "The direction of travel in the region points to a structural shift: capital is increasingly being deployed at home, and the institutions and ecosystems are being built around it. The next phase of growth will be shaped by continued collaboration between sovereign wealth funds, family offices and global investment managers, alongside broader adoption of technology and data-driven investment approaches. "This comes as BlackRock Investment Institute research suggests GCC countries will invest about $2.1 trillion by 2030, with spending focused on making economies more resilient to disruptions in trade, shipping and energy markets." The findings also highlight the growing importance of infrastructure and digital infrastructure investment. Regional investors cite opportunities across energy, utilities, transport, data centres and artificial intelligence-related infrastructure as key drivers of future growth. Family offices are also playing an increasingly important role in the region's investment ecosystem. The report finds family offices now account for nearly half of active private capital investors in the Middle East, with private equity representing their largest area of investment interest. Key findings include: Family offices remain the largest investor group since 2023. They account for almost 50% of active Middle East-based private capital investors in 2026. GCC family offices tilt toward private equity at 27% of future search mandates, ahead of real estate at 19%, private credit at 16%, infrastructure at 14%, hedge funds at 13%, and natural resources at 11%. Venture capital remains resilient. Aggregate Middle East VC deal value averaged $2.4bn per year between 2021 and 2025, holding steady while the US and Europe faced a tougher funding environment.
MBMobile Business•WAM22 Sept
