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Private Equity Hopes for Good Returns: Abraaj Capital

At the moment, according to Naqvi, the greatest opportunity is crisis itself where markets are down and prices have corrected. There are opportunities in distressed assets and yield-driven deals, he said at a private equity forum.

Naqvi said the Middle East offers large real estate investment opportunities as property prices correct across the region and governments spend on infrastructure.

In Saudi Arabia, the government has planned to spend $400 billion on public works projects in the next five years as the region’s largest economy takes advantage of lower construction costs to diversity its economy away from oil.

“We have enough cash to capitalise on investment opportunities in the Middle East, North Africa and South Asia region,” said Naqvi.

“We don’t need money to raise as the company raised $2.6 billion in September last year,” he said.

Abraaj Capital raised $7 billion since 2002, which is 20 per cent of total funds raised in the region.

Earlier in his address, former prime minister of Pakistan Shaukat Aziz said, “I am optimistic about the energy rich Gulf Cooperation Council nations. They have a lot of potential for investment in some areas, specially infrastructure.”

Aziz said that real estate developers and banks likewise should forget about ‘flipping’ projects for quick profits and focus on long-term strategies in order to fight the current economic crisis.

“Only stimulus packages are one aspect getting back consumer confidence. But apart from this we need more realistic approach.”

No matter it is the United States, Japan and the UAE, more work needs to be done, he said.

“We must appreciate that the world is one market,” he concluded.

abdulbasit@khaleejtimes.com