Many private equity and venture capital funds eye distressed assets, a top sector expert has revealed. Technology, healthTech, eduTech and pharmaceuticals are among the sectors which are expected to see big-time PE and VC fund investments in the short-to-medium term. 50 local and foreign banks operating in the UAE alone and individual banks will be forced to close more branches going forward, leading to reduction in staff in retail banking as further digitisation is embraced. GCC region has witnessed significant consolidatio, including the merger of National Bank of Abu Dhabi and First Gulf Bank in 2017 to form UAE’s largest bank, First Abu Dhabi Bank, and the merger of ADCB, Union National Bank and Al Hilal Bank, and SABB and Alawwal Bank in Saudi Arabia.
PE firms and investors were sitting on their hands. But for the last few months, a number of PE firms are smartly and opportunistically looking at distressed assets or real estate that have been impacted by the pandemic. The process (of finalisation of negotiations) is taking a lot longer especially for higher value tickets which require physical diligence. Mubadala, Beco Capital, Wamda Capital, Shorooq Partners, Hala Ventures, 500 Startups, ADQ, Phonecian Funds, Hambro Perks, Middle East Venture Partners (MEVP), Saned Equity Partners and Venture Souq are among the leading Middle East-based investment funds.