The value of private equity deals in Mena region rose to $993 million in 2010, compared to $680 million the previous year with the UAE topping the list in terms of the number and value of deals brokered, said a report.

The most popular sector for private equity investment was Information Technology, with seven deals, while the media and consumer-related sectors also saw the completion of four deals each followed by health sector with three, said Al Masah Capital in its report.

The UAE topped the regional list with six private equity deals valued at $816.5 million. Abraaj Capital was the primary reason for the UAE’s success, as it finalized the regions most valuable deal, worth $554 million, it stated.

The deal saw Abraaj Capital acquire a 49 per cent stake in Dubai-based Network International, a subsidiary company owned by Emirates NBD, through Abraaj Financial Technologies Holdings Limited, the Al Masah Capital report said.

Saudi Arabia, Egypt and Jordan each recorded five deals, however in terms of deal value, Jordan’s $109.8 million dwarfed Saudi Arabia and Egypt’s $20 million and $8.5 million, respectively, it added.

Among other countries, Kuwait and Lebanon concluded three deals each, while Tunisia and Bahrain witnessed the completion of one deal.

Industry analysts from Al Masah cited the improvement in the global economic environment as the catalyst for growth in regional private equity.

According to the report, Global Capital Management was the only company to record exit transactions, where it offloaded its investment in Depa Limited, one of the leading interior design companies. Moreover, the company also sold its investment in the Evergrande Real Estate Group.

'Upon exiting its investments, Global documented a 23 per cent and 35 per cent return on its investments from Depa Limited and Evergrande, respectively,' the report added.

The region also witnessed twenty initial public offerings (IPO) and raised a total of $2.7 billion in the last fiscal year. Saudi Arabia had the largest number of listings with nine, followed by five in Tunisia and two in Egypt.

Interestingly, Oman’s Omani Qatari Telecommunications Company, raised the highest amount of $474.6 million with just a single IPO listing for the year. Bahrain’s Aluminium Bahrain came second with $389.8 million, the report said.

On performance of funds, the report said Mena aimed to raise $3.8 billion through 11 announced funds. Abraaj’s Riyada Enterprise Development (RED) and Growth Capital (SME) Fund were the most ambitious in fundraising bids with a target of $700 million.

Three funds, Al Masah Mena Growth PE Fund, ARC Real Estate Income Fund and DB Masdar Clean Tech Fund were hopeful of raising a total of $500 million each, the report stated.-TradeArabia News Service