Yahoo Finance

The Middle East is on course to have its second-best year ever for private equity dealmaking in terms of deal value.

In 2023, there has been $14.16 billion worth of investment into companies in the region, across 101 deals. The highest-ever total was in 2021 at $19.33 billion and 160 deals. Last year, $15.08 billion was split across 146 deals.

While the rate of activity may have slowed slightly, a number of large deals this year have boosted the total. Saudi Arabian PIF's $3.31 billion leveraged buyout of Saudi Iron and Steel, announced in September, is the third-largest LBO ever in the region and 2023's largest PE deal yet.

Saudi Arabia may have earned the crown for the biggest deal, but the UAE has seen the highest volume of PE transactions with 33 deals, compared to Saudi Arabia's 13. In Israel, formerly the region's dominant PE market, there have been just two deals.

Although dealmaking has continued at a healthy clip, fundraising has almost completely dried up. Just three funds have closed this year, for which the values have not been disclosed. Exit activity, too, slowed from 42 in 2022, worth $17.58 billion, to just 28 worth $5.31 billion total in 2023. Fundraising activity is unlikely to significantly recover while exits remain subdued.
   
Featured image of Saudi Arabia's Farasan Islands by Westend61/Getty Images

This article originally appeared on PitchBook News