Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

India?s Sage Capital to launch $1b fund in GCC and Africa  Join our daily free Newsletter

MENAFN - Khaleej Times - 23/05/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) India-based private equity firm sage capital said on thursday that it would launch funds with a corpus of around 1 billion targeted at the gcc africa and india markets in the second half of 2014.

the fund will seek to invest in real estate projects across the middle east and north africa and also in small- and medium-sized companies that have the potential to be regional leaders regardless of the stage of their growth.

speaking to khaleej times manish kanchan founder of sage capital said the middle east region offers a unique combination of scaled-up economies strong gross domestic product growth low inflation positive current account balances and robust state finances that together grant relatively better immunity from global imbalances and macroeconomic risks.

“the gcc alone with a gdp of over 1.5 trillion has an economy that is almost as large as india and growing at four to five per cent with low inflation of two to four per cent. saudi arabia and the uae are the largest economies in the region but kuwait and qatar at around 200 billion also offer scalable opportunities. egypt iraq and iran could blossom into attractive markets if the geopolitical issues are effectively addressed” he said. kanchan said there is significant interest among middle east-based investors for indian private equity funds and fund managers.

“they see a clear advantage in backing indian fund managers targeting investments in the middle east given their experience of partnering with companies that operate in a much more challenging regulatory and business environment in india” kanchan said.

several large middle east-based limited partners have been investing with indian general partners both in conventional private equity and real estate. they include gulf investment corporation the abu dhabi investment authority and the qatar investment authority.

kanchan said the region was in a phase of transition as nations de-risk their economies by diversifying away from oil exports and witness surging domestic consumption and investment. besides non-oil growth is also considered critical to bolster employment creation and address demographic challenges.

“while the gcc’s oil growth will be flattish going forward non-oil growth is expected to boost gdp growth and expand at five to seven per cent annually. economic activity will continue to be driven by construction and trade spurred by high public infrastructure spending and rising private sector credit.”

kanchan said real estate is an obvious beneficiary of this trend as are companies operating in sectors such as construction banking and finance. private consumption-led sectors will also see considerable traction as the per capita incomes in the region are already comparable to india’s.

“private equity funds can capitalise on this opportunity by partnering with real estate developers and small- and mid-sized enterprises” he said.

there is a lot of excitement and anticipation with regards to dubai’s hosting of expo 2020 together with the 2022 fifa world cup in qatar which many believe could fundamentally reshape the way business is done in the region he observed.

quoting estimates kanchan said dubai expo 2020 is expected to add in excess of 20 billion to the uae’s gdp over the next five to six years and potentially give a major fillip to the overall growth in the region as a whole. the government is believed to have allocated 8-10 billion for the investment leading up to the event that will have a cascading effect on private investment as well.

“expo 2020 will throw up numerous opportunities in infrastructure logistics construction real estate hospitality and tourism energy and utilities and banking and finance. the sheer scale of funding requirements and the resultant revenue potential will act as a magnet for private equity funds targeting the region” kanchan said.

he said enterprises from around the world are gravitating towards the middle east because it offers a large and growing market. moreover the region also ranks high on ease of setting up and conducting business.

— issacjohn?khaleejtimes.com


 


Khaleej Times




  MENA News Headlines
 Nov 26 2014 - Kuwait's Mabanee to invest USD910m on projectMENAFN
(MENAFN) Mabanee, the Kuwaiti real estate firm, announced it is planning to spend USD910 million on building the fourth phase of its development of The Avenues mall, Arabian Business reported.The ...

 Nov 26 2014 - Oman's Sezad, OOC sign MoU on Duqm refineryMENAFN
(MENAFN) The Special Economic Zone Authority of Duqm (Sezad) announced it has signed a Memorandum of Understanding with the Oman Oil Company (OOC) regarding construction work on the planned refinery ...

 Nov 26 2014 - Emirates Airlines adds new flight to Maldives routeMENAFN
(MENAFN) Dubai's Emirates Airline announced it has added a third daily service to Mal", the capital of the Maldives, which will begin servicing passengers on December 1, Arabian Business reported.The ...

 Nov 26 2014 - Abu Dhabi Int'l passenger traffic up 17 percent in OctoberMENAFN
(MENAFN) Abu Dhabi International Airport announced that it registered an increase by 17 percent in its passenger in October, Arabian Business reported.The airport said that it has registered a total ...

 Nov 26 2014 - Oman's Rolls-Royce sales grow 46 percent in Jan.-Oct.MENAFN
(MENAFN) Rolls-Royce Motors announced it has registered an increase in its sales in Oman by 46 percent during the January-October period, compared to the same period last year, Times of Oman ...

 Nov 26 2014 - GCC petrochemical industry to decline on falling oil pricesMENAFN
(MENAFN) Gulf countries' petrochemical industry is expected to begin facing challenges due to the falling of oil prices, US shale gas and China's polyethylene, Khaleej Times reported.These factors ...

 Nov 26 2014 - Syrian economy decline 40 percentMENAFN
(MENAFN) According to the Undersecretary General for Humanitarian Affairs and Emergency Relief Coordinator, Syria's economy has declined by almost 40 percent since 2011, due to the effects of the ...

 Nov 26 2014 - Qatar to invest USD43.62b on railways infrastructureMENAFN
Qatar's Ministry of Transportation announced it is currently working on the development of advanced transport infrastructure in the country, with several projects currently in the planning stages or ...

 Nov 26 2014 - Dubai's Kcal to expand to EgyptMENAFN
(MENAFN) Kcal, the Dubai-based restaurant chain announced it is planning to expand its business in the MENA region with its first store slated to open in Egypt by December this year, followed by 14 ...

 Nov 26 2014 - MENA's value of M&A deals hit USD9.3b in Q3MENAFN
(MENAFN) The Middle East and North Africa's (MENA) merger and acquisition activity increased by 17 percent during the July-September period of this year, with 109 deals announced compared with 93 ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help