Private Equity - Oman | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$6.16m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 9.81% resulting in a projected total amount of US$6.76m by 2025.
The average size per deal in the Private Equity market amounts to US$1.91m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached United States (US$594.00bn in 2024).
In the Private Equity market, the number of deals is expected to amount to 4.81 by 2025.

Definition:

Private equity involves partnerships that buy, manage, and eventually sell companies. These firms manage funds for institutional and accredited investors, who commit significant capital for extended periods. Private equity funds can acquire entire private or public companies or participate in buyouts with other investors, but they typically avoid holding stakes in publicly traded companies. The Private Equity market encompasses a broad range of deal types that involve acquiring equity ownership in private companies. This market typically includes leveraged buyouts (LBOs), growth capital, Carve-outs, and other forms of equity investments that target mature businesses with the potential for operational improvements and value creation. The market presented here does not include Venture Capital investments. While both Private Equity and Venture Capital involve equity stakes in companies, Venture Capital specifically focuses on high-growth potential startups, while private equity firms invest in established companies with the aim of increasing the value of these companies before selling their investment after several years.

Additional information:

The market contains the following KPIs: the deal value, the number of deals, the average deal size as well as the assets under management (AUM). Key players in this market are companies such as Blackstone, The Carlyle Group, KKR, Goldman Sachs, General Atlantic, and Warburg Pincus.

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Leveraged Buyouts (LBOs)
Growth Capital
Carve-Outs
Distressed Buyouts
Secondary Buyouts

Venture Capital
Venture Debt
Traditional bank loans
Digital capital raising

The Private Equity market in Oman is facing subdued growth, influenced by factors such as economic fluctuations, limited investment opportunities, and regulatory challenges. These elements contribute to a cautious investment climate, impacting overall market performance negatively.

Customer preferences: Investors in Oman’s Private Equity market are increasingly gravitating towards sustainable and socially responsible investments, reflecting a shift in consumer preferences for ethical practices. There is a growing demand for projects that align with environmental and social governance (ESG) principles, as younger demographics prioritize sustainability. Additionally, the rise of digital transformation in businesses is attracting interest in tech-focused ventures. As lifestyle choices evolve, private equity firms are adapting their strategies to capitalize on emerging sectors like fintech and renewable energy.

Trends in the market: In Oman, the Private Equity market is increasingly focusing on sustainable investments, with firms aligning their portfolios to meet the rising demand for environmentally and socially responsible projects. This trend is significantly influenced by younger investors who prioritize ethical business practices. Moreover, the digital transformation sweeping across various industries has led to a heightened interest in technology-driven ventures, particularly in fintech and renewable energy sectors. As these trends evolve, stakeholders must adapt their strategies to harness opportunities while meeting the expectations of socially conscious consumers, ultimately shaping the future of investment in Oman.

Local special circumstances: In Oman, the Private Equity market is uniquely shaped by its geographical positioning and cultural heritage, fostering a distinctive investment landscape. The country’s strategic location on trade routes enhances opportunities in logistics and renewable energy, particularly solar power, given the abundant sunlight. Additionally, Oman's commitment to Vision 2040 encourages sustainable development, influencing regulatory frameworks that favor ethical investment. The local culture, which values community and social responsibility, drives investor interest towards projects that benefit society, further differentiating Oman from other markets.

Underlying macroeconomic factors: The Private Equity market in Oman is significantly influenced by macroeconomic factors such as interest rates, inflation, and government spending policies. The Central Bank's monetary policy, particularly its interest rate adjustments, directly impacts the cost of capital for private equity firms, affecting their ability to finance investments and acquisitions. Lower interest rates generally stimulate investment activity, making it cheaper for firms to raise funds, while higher rates can constrain borrowing, reducing deal flow. Additionally, the stability of Oman’s fiscal policies and its commitment to economic diversification under Vision 2040 enhance investor confidence, attracting more capital into private equity.

Data coverage:

The figures are based on deal value, number of deals, the average size of each deal, and assets under management within the Private Equity market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, total investment (% of GDP), household wealth (per Adult), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are total investment (% of GDP), household wealth (per Adult), number of high-income persons, and number of high-net-worth individuals (HNWI).

Additional notes:

The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

In the last decades, private equity has emerged as a dominant force in global finance, reshaping industries and driving economic growth worldwide. After the peak experienced in 2021, however, private equity activity slowed down in 2022 and 2023, due to multiple factors such as inflationary headwinds, rising interest rates, geopolitical unrest and general uncertainty. With an estimated value of nearly four trillion dollars, private equity dry capital - a term commonly used in the private equity world to refer to committed, but unallocated capital - reached unprecedented heights in 2023. A high level of this capital means that private equity firms have unspent cash reserves. Among the most influential private equity firms worldwide, the Blackstone Group is the largest in terms of funds raised.