The Middle East’s private credit market is benefiting from strong capital raising opportunities, a supportive regulatory environment and rising talent, according to an industry expert in the region.
Ayman Khaleq, partner and co-leader of the Middle East practice at Morgan Lewis, said there are a wealth of private capital raising opportunities, a welcoming regulatory environment and an influx of experienced private credit professionals.
Private credit is now expanding in the region, with local investors seeking to diversify their returns after decades of wealth derived from hydrocarbons.
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“Capital raising in the space is supported by multiple regional sovereign wealth funds who are making significant allocations towards the local alternative investments market, including in credit, and regional family offices,” Khaleq said.
The regulatory environment supports or, “at the very least, does not hinder” the formation of private credit funds and vehicles, he added, with specific regimes governing credit funds in both Abu Dhabi’s and Dubai’s International Finance Centres.
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“Thirdly, the availability of an experienced roster of principals and experienced managers, either regional or international, has resulted in the creation of an entrepreneurial ecosystem,” said Khaleq.
Over the next five to six years, the Gulf Cooperation Countries and Egypt private credit market is expected to grow between 15 and 30 per cent per year, PwC forecasted, to between $11bn (£8.35bn) and $20bn.
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