UAE Private Equity Market Report, Share & Analysis 2025-2033

UAE Private Equity Market Overview

Market Size in 2024: USD 3,797.41 Million

Market Size in 2033: USD 8,078.88 Million

Market Growth Rate 2025-2033: 8.75%

According to IMARC Group's latest research publication, "UAE Private Equity Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The UAE private equity market size was valued at USD 3,797.41 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 8,078.88 Million by 2033, exhibiting a CAGR of 8.75% during 2025-2033.

How AI is Reshaping the Future of UAE Private Equity Market

• Enhancing Deal Sourcing and Valuation: AI-powered analytics platforms scan thousands of potential investment targets across the UAE and MENA region, identifying high-growth opportunities in fintech, healthcare, and clean energy sectors. Machine learning models assess company valuations more accurately by analyzing market trends, competitor performance, and financial projections.

• Accelerating Due Diligence: Private equity firms are deploying AI tools to conduct comprehensive due diligence in days rather than weeks. Natural language processing analyzes contracts, financial statements, and regulatory filings automatically, while predictive algorithms flag potential risks and opportunities across target companies' operations.

• Optimizing Portfolio Management: AI systems continuously monitor portfolio company performance, tracking key metrics and market conditions in real-time. This technology enables PE firms to make faster strategic decisions, identify value creation opportunities early, and provide portfolio companies with data-driven insights for operational improvements.

• Powering ESG Analysis: Machine learning algorithms assess environmental, social, and governance factors across potential investments, helping UAE PE firms align portfolios with national sustainability goals like UAE Net Zero 2050. AI tracks ESG compliance and performance metrics automatically, supporting the growing emphasis on responsible investing.

• Revolutionizing Exit Strategy Planning: AI forecasting models analyze market conditions, industry trends, and buyer behavior to optimize timing for exits through IPOs or strategic sales. These systems help PE firms maximize returns by identifying the most favorable windows for realizing investments in the dynamic GCC market.

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UAE Private Equity Market Trends & Drivers:

The UAE's strategic push toward economic diversification is creating exceptional opportunities for private equity investment. Government initiatives like Vision 2030 and the Abu Dhabi Industrial Strategy are actively steering capital away from oil dependence into high-growth sectors such as renewable energy, healthcare, education, technology, and logistics. This structural shift is attracting heavyweight international players—firms like EQT, Eurazeo, Pollen Street Capital, Baron Capital, and Silver Point, collectively managing over USD 700 billion in assets, are establishing offices in Abu Dhabi and Dubai. These firms are launching regional funds and partnering directly with sovereign wealth giants like Mubadala and ADQ to tap into infrastructure, clean energy, and technology investments. The UAE increased its climate tech investments by 138% between 2023 and 2024, deploying USD 2.3 billion globally, demonstrating serious commitment to sustainable sectors. Abu Dhabi's ADQ recently partnered with American firm ECP on a USD 25 billion bet to power U.S. data centers, showcasing the scale and sophistication of cross-border PE activity. This influx of global expertise combined with abundant local capital is positioning the UAE as the premier private equity hub in the Middle East.

Sovereign wealth funds are fundamentally reshaping the private equity landscape through aggressive co-investment strategies. Mubadala emerged as the world's top sovereign investor, deploying USD 29.2 billion across 52 deals—a 67% increase from the previous year. Together with Abu Dhabi Investment Authority (ADIA), ADQ, Saudi Arabia's Public Investment Fund (PIF), and Qatar Investment Authority (QIA), GCC funds invested a record USD 82 billion, claiming five spots among the top 10 global dealmakers. Mubadala now manages USD 330 billion in assets under management, with its portfolio split across private investments (40%), public markets (23%), real estate and infrastructure (17%), alternatives (15%), and credit (5%). These sovereign partners bring more than just capital—they offer deep market knowledge, operational synergies, access to strategic sectors, and long-term commitment that reduces risk while maximizing control over assets. Eshraq Investments unveiled a new strategy in May 2024 focused on building directly-held PE investments in high-growth GCC companies with 5-7 year horizons, emphasizing long-term value creation. This institutional framework creates an environment where sophisticated, high-value transactions thrive, giving international PE firms confidence and credibility when entering the region.

The venture capital segment is experiencing remarkable momentum as part of the broader private equity ecosystem. MENA startups raised USD 863 million in January 2025 alone, with venture capital hitting USD 678 million in Q1 2025—the highest figure since Q4 2023. The UAE and Saudi Arabia dominated this activity, accounting for 88% of regional VC investments. Dubai alone allocated USD 14.6 million through VC firms during this period, supporting startups across fintech, health tech, and SaaS sectors. Firms like Arzan Venture Capital, Flat6Labs, VentureSouq, and Shorooq Partners are actively funding pre-seed and seed-stage companies, creating a robust pipeline for later-stage PE buyouts. UAE-based fintech UPFRONT recently secured USD 10 million in pre-seed funding (debt-equity mix) to address cash flow inefficiencies, demonstrating investor appetite for innovative financial solutions. The business-friendly regulatory environment, world-class infrastructure, and proximity to both Asian and European markets make the UAE particularly attractive for early-stage and growth equity investments. This vibrant startup ecosystem feeds into the private equity funnel, creating opportunities for value creation across the entire investment lifecycle.

UAE Private Equity Industry Segmentation:

The report has segmented the market into the following categories:

Fund Type Insights:

• Buyout
• Venture Capital (VCs)
• Real Estate
• Infrastructure
• Others

Breakup by Region:

• Dubai
• Abu Dhabi
• Sharjah
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in UAE Private Equity Market

• March 2025: ADQ and American private equity firm ECP announced a USD 25 billion joint investment to power U.S. data center projects, strengthening UAE-U.S. AI and technology partnerships while expanding ADQ's international infrastructure portfolio.

• May 2024: Abu Dhabi-based Eshraq Investments unveiled a new strategic focus on building directly-held private equity investments in high-growth GCC companies with 5-7 year investment horizons, emphasizing long-term value creation and regional market opportunities.

• July 2025: EQT, Eurazeo, Pollen Street Capital, Baron Capital, and Silver Point—managing over USD 700 billion collectively—accelerated their UAE expansion, establishing Abu Dhabi and Dubai offices to launch regional funds and partner with sovereign wealth funds on infrastructure, clean energy, and technology deals.

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