Documentos de Académico
Documentos de Profesional
Documentos de Cultura
TABLE OF CONTENT
Economic Outlook
Soaring Demand
B- BBB
BBB Lebanon Jordan A+
Morocco Kuwait A
Bahrain High GDP growth
AA-
Algeria
Libya BBB- Qatar Aa3
Egypt A+ UAE
Saudi Arabia
A
Oman
Fragmented industries
driving consolidation Sector diversification
Source: CORECAP Research & Analysis, World Bank, IMF, EIU, Standard & Poor’s, Noozz, www.bp.com, GIH, Alistair Crighton: “The Economies of Knowledge” 2006, Dr. Fatih
Birol: “World Energy Prospects and Challenges” 2006, World Economic Forum: “The Arab World Competitiveness Report 2007”; all ratings from S&P except of UAE (Moody’s) 4
Drivers & Opportunities
Macro Framework
Progressive Government
Political Stability High Oil & Gas Prices
Initiatives
9 9 9
Advanced Improved Improved Clear Vision Infra- Large
Regulatory Investment Sovereign Horizon structure Account
Structure Climate Rating Dvpt. Surplus
Liquidity
Ample
IPR/Dispute Settlement/Tax/ Attracting FDI & Repatriation of Seeking
Liquidity/Eco.
Capital Repatriation/Sukuk Regional Capital Islamic Inv.
Multiplier
Issuance/Conversion of Banks Opportunities
5
Drivers & Opportunities (Contd.)
Drivers Opportunity PE Industry Sectors
Private
Private equity
equity invests
invests in
in companies
companies trading
trading in
in real
real goods
goods and
and
Real Economy
services
services
Partnership-shared Partners
Partners in
in aa private
private equity
equity fund
fund share
share thethe same
same risk
risk and
and
Risk & Return return
return ofof companies
companies thethe fund
fund invests
invests in
in
Alignment of Private
Private Equity
Equity unlocks
unlocks value
value by
by aligning
aligning interests
interests of
of investors,
investors,
Interests managers and all other parties involved in a transaction
managers and all other parties involved in a transaction
Private
Private Equity
Equity creates
creates long-term
long-term value
value through
through the
the
Long-term Value
implementation
implementation of
of well-defined
well-defined strategies
strategies
Private
Private Equity
Equity enhances
enhances Corporate
Corporate Governance
Governance in
in portfolio
portfolio
Ethical Investment
companies, increasing transparency
companies, increasing transparency
favorable
unfavorable
7
Area of Focus Business Cycle
Fit For Islamic Private Equity
Business
LBO/MBO Turnaround
Governments & Growth Stage Consolidation
Family-Owned Firms
Grow Expand Bridge Organic growth Buyout by internal Restoration
Early Stage and/or expansion management or of under-
through external acquirer to performing
Preparation acquisitions capitalise on healthy mature business
Growth in Major underlying business
Seed Startup Commence for IPO within
operations expansion
next 12 months
Sharia'a compliant
Funding
Value
Portfolios / Funds
8
Area of Focus Healthcare
High population growth related diseases (diabetes, and awareness among local
cardiovascular, etc.) population
Beds CAGR 5%
(Thousands)
114
11.9
65
Investment in
Opportunities
Healthcare providers
Pharmaceutical companies
9%
8% 9%
1,222 1,241
1,177
(US$ billion)
3%
1%
47 9
Investment in
Source: CORECAP Research & Analysis, Swiss Re, Bahrain Monetary Agency
10
Area of Focus Travel & Tourism
3.1%
Over 6m jobs to
be created in T&T
sector until 2016 190
102
2.6%
2006 2016
Investment in
Opportunities
Source: CORECAP Research & Analysis, Global Investment House: “GCC Investment Strategy – II” 2007
11
Area of Focus Telecom
558
542
492
340
240
185
99 93
63 52 50 44
22
9 7
AE
ria
an
a
ria
an
a
co
t
ar
n
a
yp
ai
by
si
ai
da
bi
no
U
at
Sy
m
oc
rd
ge
w
ni
hr
Eg
ra
Li
Su
Q
O
Ku
ba
Jo
or
Tu
Al
Ba
iA
M
Le
ud
Sa
Investment in
Opportunities
Source: CORECAP Research & Analysis, Global Investment House: “GCC Investment Strategy – II” 2007
12
Area of Focus Infrastructure
20
In US$ billion
71
112
58 206
663
Water & Waste Industry Power Petrochemicals Oil & Gas Construction
Investment in
Opportunities
Source: CORECAP Research & Analysis, Qatar Financial Center: Annual Report 2006
13
MENA Islamic Private Equity The Way Forward
Structured & Alternative Islamic Investments on the Rise
20%
28% 30% 31% Equities
30%
24% 21% 21% Fixed Income General shift in HNWI asset
allocation strategies towards
25%
13% 13% 11% Cash/Deposits
equities and alternative
16% 16% 15% Real Estate investments…
15%
19% 20% 22% Alternative Investments*
ve
nt s 10%
* includes structured products, hedge funds, managed funds, foreign currency, commodities, private equity and other investments
400
325
Source: CORECAP Research & Analysis, Capgemini/Merril Lynch: “World Wealth Report 1997-2006”, Ernst & Young: “The Islamic Funds & Investments Report”, 2007
15
Soaring Demand
27,312
25,394
CAGR 232%
More than 150 Sukuks globally
with a total value exceeding US$
35bn since 2005.
12,066
In 2007, an additional 48 Islamic
7,210 bonds worth US$ 26bn were
5,717
announced
980
GCC Rest of the World Average Size of Islamic Real Estate Funds in US$ millions
189
CAGR 36%
2002 2006
Source: Ernst & Young: “The Islamic Funds & Investments Report”, 2007
16
Drivers & Challenges
Growth in Muslim Increasing Muslim Governments Growing Investor Need for Islamic
population Wealth Creating Liquidity Sophistication Diversification Entrepreneurship
Drivers
Perceived to be Limited Premiums due Dependent on a Scarce research Limited skill Non-available Limited due to Lack of uniform
restricted to compared to to complexity, pull strategy and outdated pool Sharia’a- Sharia’a accounting
Muslims, conventional screening, figures compliant screening and standards and
Challenges
If challenges are overcome, Islamic Private Equity has huge potential to outgrow conventional Private Equity
Source: CORECAP Research & Analysis, Ernst & Young: “The Islamic Funds & Investments Report”, 2007
17
Islamic Private Equity Going Forward: US$ 41bn by 2011
IFI GCC
25%
US$ 12bn
IB GCC
800
200 15%
25%
100 42%
-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
GLOBAL ISLAMIC ASSETS IB GC C ASSETS IFI GC C ASSETS
US$ 41bn
18