Middle East 2007 - The Globalization of Private Equity

http://www.weforum.org 19.05.2007
The Globalization of Private Equity
Private equity, now a major force in shaping global business, is taking off in the Middle East.
1) How will the rise of private equity shape the future business environment in the Middle East?
2) What can international private equity firms offer the region, and what are they expecting in return?
3) What are the prospects for the global private equity industry in the medium to long term?

Omar Kutayba Alghanim, Chief Executive Officer, Alghanim Industries, Kuwait
Henry T. Azzam, Chairman, Dubai International Financial Exchange (DIFX), United Arab Emirates
David Jackson, Chief Executive Officer, Istithmar, United Arab Emirates
Arif M. Naqvi, Vice-Chairman and Chief Executive Officer, Abraaj Capital, United Arab Emirates
Abe Saad, Chief Executive Officer, AB Capital, United Arab Emirates
Opening Remarks by
David M. Rubenstein, Co-Founder and Managing Director, Carlyle Group, USA
Moderated by
Michael J. Roux, Chairman, Roux International, Australia

Category:

News & Politics

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[mrhamad18]

Omar Alghanim (28:19) was the only speaker with a sober view of private equity in the Middle East. In light of the global financial crisis that succeeded this talk his view rings even truer today.

[Jiggytarmac]

(I) we were a small business trading from a sometime difficult location. After two years and some thousands of overheads, we closed, exploring other market investment oppurtinities I came a cross Eseva an electricity company dealing in rural India amongs the un enlightened. They do electrics for roughly $270. In the overheads + rates which have gone somewhere I can only hope what we tried to do, is taken into consideration.

[SuperApparition]

Private Equity is a fraudulent form of business. Let me look at private equity from a simple perspective. Private equity firms take control (using a loan) of a company and pay for the company using the cash flows from the newly owned company. That cash flow would normally be fed back into the company with the view to improving the company. But when that cash flow is taken away from the company to pay off the debt of the new owners, the company surely suffers. Great business venture.

[yk2bad]

I think the issue is that PE firms are exclusively "foreign"?

If domectic firms had a chance to mature, and use management firms to aid the process, then by all means- go PE and infastructural change

Other than that, it is just a propaganda from the "central" proponents of NWO or globalization, for them to further the cause.

[shahvikalp]

nice debate carried out...

thank you

[vampiresecstacy]

very informative thank you