Saudi family firms are good investment target

Medium-sized companies and family entities in Saudi Arabia present a good investment opportunity inside the Gulf Kingdom, the largest Arab economy, an Abu Dhabi Investment official was quoted as saying Sunday.

Sameer Asaad, Private Equity Director at the government-owned Invest AD, said nearly $10 billion in investments are available in private equity funds in Saudi Arabia and other countries of the Middle East.

“I believe the present time is the best period for investment in private equity in Saudi Arabia, the largest economy in the region and the most populated nation in the Gulf,” he told the London-based Saudi daily Asharqalawsat.

“The Saudi market is very promising although it is stubborn…the most suitable option for investment for now is in medium sized companies, which have an ambition for expansion in Saudi Arabia and in the region…these are like jewels that should be explored but the investors should know Saudi Arabia very well as it has three separate markets—the Western, Eastern and central regions.”

Asaad described Saudi Arabia, the world’s oil basin, as “more a market for developing capital than for acquisition.”

“Company founders are interested in keeping part of their shareholding in anticipation of growth in the coming years…most of them tend to sign deals with partners who possess both strong financial resources and an expanded network of relations that will open up new business chances for them,” he said.

“Other investment opportunities are also available at family companies, which sometimes form a part of giant entities and want to reduce their size to focus on the remaining part of their operations,” he added.

Invest AD, formerly known as Abu Dhabi Investment Company (ADIC), began operating under its new name in 2009 by announcing the creation of four major investment funds to attract global capital to the UAE and other Arab markets.