'GCC to enjoy more attractive valuations than India, China'
Dubai: The Gulf Cooperation Council (GCC) countries are expected to enjoy more attractive valuations in 2012 when taking into account the growth, compared to emerging markets such as India and China, says an Middle East based investor firm.
In 2012, India and China are expected to have real GDP growth figures of 7.8 percent and 8.2 percent respectively, higher than the 4.7 percent growth anticipated for the GCC, said Amwal AlKhaleej, a leading alternative investment firm.
However, GCC's growth is priced cheaper than that of India's or China's, making it a particularly attractive hub for investors, the company said in a statement.
Speaking to Wharton School MBA students via webinar, Samer Sarraf, Senior Vice President and Amwal AlKhaleej's UAE Country Head said, "The GCC presents a great opportunity for private equity investors since most companies in the region have come out of the financial downturn with lower and more realistic valuations than in earlier years".
According to the firm, the overall climate for private equity in the Middle East has also become increasingly conducive, with many mid-market family businesses looking to grow aggressively.
It said increasing regulatory reforms in the region promises attractive exit options for private equity (PE) funds, thereby further driving the growth of PE in the Middle
Amwal AlKhaleej is a leading alternative investment firm with about USD 700 million of assets under management.
The firm started its operations in 2005 in Riyadh with offices in Dubai and Cairo.