Apex Group survey reveals government reforms and strong investment flows make the Middle East the top region for private equity and venture capital in 2025

The Middle East is set to experience the highest growth potential for private capital in 2025, driven by strategic government initiatives and sectoral reforms, according to a recent survey by the Apex Group. The financial solutions provider, which conducted the poll at Apex Invest Abu Dhabi in November, found that 39% of asset managers are particularly optimistic about private equity and venture capital investments in the region.

The survey also coincided with a report from Wamda, which revealed a significant uptick in funding for startups in the Middle East and North Africa. In November alone, startups in the region raised $258 million, marking a 92% increase compared to October. This surge highlights the Middle East’s rising appeal to investors.

Christiane El Habre, the regional managing director for the Apex Group, emphasized the region’s attractiveness, noting the successful combination of government-backed reforms, private sector growth, and robust capital inflows. These factors are creating a dynamic environment for asset managers to deploy capital productively and create solid returns.

However, the survey also identified challenges. Despite the optimistic outlook, 54% of asset managers cited access to high-quality assets as a major barrier to achieving their portfolio diversification goals. Other concerns included market volatility (21%) and regulatory constraints (13%).

While the Middle East emerged as the leading destination for private capital, the Asia-Pacific region was also seen as a strong contender, with 30% of survey participants identifying it as a favourable investment region. North America followed at 22%, while Europe, Africa, and South America were less favoured due to various geopolitical and socioeconomic issues.

The findings reflect the growing sophistication of the Middle East’s asset management landscape. The survey’s results were echoed by key industry players at the Apex Invest Abu Dhabi event, which included representatives from prominent regional investors such as Saudi Arabia’s Public Investment Fund, Mubadala Investment Co., and the Abu Dhabi Investment Authority.