Private Equity - Qatar | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$7.46m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 7.88% resulting in a projected total amount of US$8.04m by 2025.
The average size per deal in the Private Equity market amounts to US$1.74m 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 4.17 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 Qatar is facing a subdued decline, influenced by factors such as economic uncertainties, fluctuating oil prices, and a cautious investment climate. These elements have contributed to a slower growth trajectory in recent years.

Customer preferences: In Qatar, the Private Equity market is witnessing a notable shift in investor preferences towards sustainability and ethical investing. As awareness of environmental and social governance (ESG) grows, investors are increasingly favoring funds that prioritize sustainable practices and impact-driven initiatives. This trend is further supported by the country's younger, more diverse demographic, which values innovation and social responsibility. Additionally, with the rise of a tech-savvy population, there is a growing interest in sectors like renewable energy and digital transformation, steering investment strategies towards socially conscious ventures.

Trends in the market: In Qatar, the Private Equity market is increasingly focusing on sustainable and ethical investing, reflecting a shift in investor preferences towards environmental and social governance (ESG) metrics. This trend is characterized by heightened interest in renewable energy projects and socially responsible ventures, particularly among the younger demographic that values innovation. Additionally, the embrace of digital transformation is propelling investments in tech-oriented startups. These trends are significant as they not only align with global sustainability goals but also attract a wider pool of capital, fostering a more resilient and future-oriented investment landscape for industry stakeholders.

Local special circumstances: In Qatar, the Private Equity market is uniquely shaped by its strategic geographical location and a strong government focus on economic diversification away from oil reliance. The country’s rich cultural heritage fosters a collaborative investment environment, encouraging partnerships between local and international investors. Additionally, regulatory frameworks favor sustainable practices, with initiatives promoting green funding and ethical business models. This local context drives a burgeoning interest in sectors like renewable energy and technology, catalyzing a dynamic landscape for innovative investment opportunities.

Underlying macroeconomic factors: The Private Equity market in Qatar is significantly influenced by macroeconomic factors such as interest rates, government spending, and global capital flows. The Central Bank's monetary policy, particularly its stance on interest rates, plays a crucial role in shaping investment dynamics. Low interest rates encourage borrowing, making capital more accessible for private equity firms, which can then pursue leveraged buyouts and growth financing in emerging sectors. Additionally, government initiatives aimed at economic diversification and investment in infrastructure bolster market confidence, attracting both domestic and international investors. The interplay of these factors creates a conducive environment for private equity growth, especially in promising sectors like renewable energy and technology.

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.