Gulf Capital capitalises on unprecedented growth and unique investment opportunities

Abu Dhabi/Singapore – Gulf Capital, a leading thematic private equity buyout firm operating in the GCC and Southeast Asia, predicts that the East and West Asia investment corridor will drive global economic growth over the next three decades. The GDP of the Gulf Cooperation Council (GCC) countries, ASEAN countries and India will grow by 220%, 270% and 410% respectively by 2050, in contrast to slower growth of 50% for European economies and 80% for the US economy over the next three decades. Clearly, the new Silk Road through the East-West corridor is one of the fastest growing economic blocs in the world today.

Opening in Singapore for the first time tomorrow before an audience of more than 1,000 delegates from around the world, the SuperReturn Asia Conference will explore opportunities for global and regional investors as Asian countries deepen and strengthen their investment networks in the East and West Asia.

Gulf Capital CEO Dr. Karim El Solh, who will deliver the SuperReturn Asia keynote address, explained: “Today’s global investors realize they have unprecedented growth opportunities in Asia, with strong macroeconomic fundamentals. , a growing middle class led by a young, tech-savvy demographic, and a revival of intra-regional economic connectivity and trade flows along the new Silk Road. With a network of local offices and private equity teams on the ground from the GCC to Southeast Asia, Gulf Capital is uniquely positioned to capitalize on this unprecedented growth in the new Silk Road corridor of East Asia and Western”.

With Asia’s GDP expected to grow to $22 trillion by 2050, it will account for 60% of global GDP. Specifically, the GCC states of Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman, Bahrain, and ASEAN countries are making significant contributions to Asia’s overall growth, accounting for half of the world’s projected total GDP growth. until 2050. This is mainly due to its investor-friendly regulations, thriving industrial activity, successful diversification drives, a growing services sector, and a young entrepreneurial population. Asia’s population growth will shape this development. The continent’s middle class is expected to grow to three billion people by 2030, representing 60% of the world’s population. By 2040, this segment is likely to account for 40% of global consumption. Middle-market companies have an opportunity to benefit from the rise in per capita consumption brought about by the burgeoning middle class in Asia.

The GCC remains a rare bright spot amid the current global recession defined by tighter monetary policy, rising interest rates, and rising food and energy prices. Despite a sobering global macro climate, Gulf Capital’s top target regions continue to demonstrate strong resilience and record growth. For example, Saudi Arabia’s GDP grew by a remarkable 12.2% in the second quarter of 2022, positioning the Kingdom as the fastest growing major economy in the world. Saudi Arabia is forecast to grow 7.6% in 2022, up from 3.2% in 2021. The United Arab Emirates is forecast to grow a solid 6.2% in 2022 on the back of rising oil prices and a boost very successful diversification program in the non-oil sector. sector.

The International Monetary Fund (IMF) estimates that energy exporters in the Middle East and Central Asia will get $320 billion more in oil revenue than its initial projection, a figure equivalent to around 7% of their combined GDP. As a result, the GCC economies will more than double their GDP growth rate in 2022, to achieve a sizeable growth of 6.4%, up from 3.1% in 2021. Over the next four years, the accumulated financial surplus in the GCC could reach USD 1.4 trillion according to IMF projections, positioning the region as one of the richest and most solvent economic blocs in the world.

Gulf Capital invests in well-established middle-market companies led by brilliant entrepreneurs in the technology, fintech, healthcare, business services and sustainability industries. These industries are among the emerging in the Asia Pacific tech market, which is projected to be worth $675 billion by 2025. Gulf Capital has built a long history of supporting entrepreneurs in these sectors and transforming their companies from local players. . to global leaders, through ambitious organic growth and acquisition campaigns. The firm also has a unique focus on deep operational improvements across its portfolio companies thanks to its large bank of 23 industry advisors and operating partners. On average, Gulf Capital has more than tripled the profitability of the companies it successfully sold and abandoned.

Gulf Capital recently established an office in Singapore and hired a local team of private equity experts who will help Gulf Capital’s portfolio companies expand from the GCC to Southeast Asia. Mr. Shantanu Mukerji, Head of South East Asia Operations at Gulf Capital, said: “As we expand our franchise, we will focus on acquiring and growing portfolio companies throughout the East and West Asia investment corridor. Typically, we have been acquiring companies in West Asia and making them world leaders by successfully expanding them in East Asia. Over the past fifteen years, we have acquired 14 companies across Asia and successfully expanded our portfolio of companies to this high-growth region. With a strong private equity team based in Singapore, we now look forward to investing in ASEAN businesses and expanding them in the reverse direction to the GCC and the broader Middle East. The ASEAN companies we bring to the GCC will benefit from the high growth and many opportunities in this region. In the long term, we intend to recreate this new Silk Road and invest along the high-growth corridor of East-West Asia.”

Dr. Karim El Solh concluded: “We will continue to create value for our investors by building global leaders from West to East Asia and vice versa and by partnering with successful entrepreneurs and business leaders to help internationalize their companies and increase their profitability. We have a unique investment approach, focused on deep operational improvements and rapid market internationalization, and believe that our differentiated strategy can create real value for our global investors, which include some of the largest sovereign wealth funds, public and corporate pension plans. and prestigious. donations, foundations and family offices. In today’s volatile and uncertain global economic environment, we are particularly encouraged by the improved growth prospects and strong momentum from our East and West Asia investment corridor.”

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