The global private equity (PE) landscape is witnessing a resurgence, with dealmaking activity gaining traction in 2024.

However, lingering economic uncertainties and sluggish fund-raising continue to pose significant challenges to a full-scale recovery.

Bain & Company’s 16th annual Global PE Report, released in March, highlights a cautiously optimistic outlook for the industry, as both investments and exits show clear signs of revival after a prolonged downturn.

Investment and exit recovery signals renewed confidence

Following two years of sharp declines, PE investments and exits rebounded in 2024, marking a crucial turning point for the industry.

Pent-up demand among general partners (GPs) to deploy capital, alongside improving economic conditions and central bank interest rate cuts, fuelled a 37 per cent year-on-year rise in buyout investment value to $602bn (excluding add-on deals).

Exit activity also showed strong momentum, with global exit value climbing 34 per cent to $468bn. The exit count increased by 22 per cent to 1,470, suggesting a gradual thaw in the liquidity freeze that had constrained capital distributions to limited partners (LPs).

Despite this positive momentum, a backlog of 29,000 unsold companies remains, underscoring the need for further market improvements.

Navigating a complex macroeconomic ecosystem

Bain’s analysis underscores the importance of adapting to a dynamic macroeconomic environment in 2025. Factors such as inflation trends, interest rate fluctuations, trade policies, and geopolitical uncertainties remain critical variables influencing deal activity.

“2024 can be considered the year of the partial exhale. Whether the renewed impetus in 2024 can build will depend on how policy unfolds,” said Hugh MacArthur, chairman of Bain & Company’s global Private Equity practice.

“We think the headwinds that have held back activity since mid-2022 should continue to dissipate. The industry is anxious to make deals, GPs are finding creative ways to boost liquidity, more dollars should flow in from sovereign wealth funds and private wealth, and returns remain strong. But deal appetite is still tempered by the uncertainties keeping markets on edge,” he added

The Middle East’s expanding private equity landscape

Gregory Garnier, Middle East head of Bain’s Private Equity practice, pointed to the region’s growing appeal for investors. “The Middle East is entering a dynamic period of growth and transformation, creating unprecedented opportunities for investors. As economies diversify and sectors such as technology, renewable energy, and infrastructure gain momentum, private equity firms have a unique chance to drive meaningful value.”

He emphasised that forward-thinking funds leveraging regional expertise and strategic partnerships will be best positioned for success.

Global trends in dealmaking and exits

Bain’s report outlines strong growth in deal value across regions, with take-private transactions dominating high-value deals.

Europe led the recovery with a 54 per cent rise in deal value on a 9 per cent increase in deal count, while North America saw a 34 per cent increase in value.

The Asia-Pacific region recorded an 11 per cent rise in deal value, although weaker growth in China and a decline in Japan weighed on overall performance.

Public-to-private deals surged to $250bn globally, representing almost half of all deals over $5bn in North America. The technology sector remained a focal point, accounting for 33 per cent of buyout deals by value.

The financial services and industrial sectors also experienced significant growth, with deal values jumping 92 per cent and 81 per cent, respectively.

Exits rebounded strongly, driven by a 141 per cent increase in sponsor-to-sponsor transactions, which totalled $181bn in 2024. However, strategic exits remained flat, and IPO activity continued to lag, representing just 6 per cent of exits by value.

Despite the uptick in exits, distributions to LPs dropped to 11 per cent of net asset value — the lowest in a decade — indicating that liquidity challenges persist.

Fundraising faces continued pressures

Fundraising remained sluggish in 2024, marking the third consecutive year of decline. Total capital raised fell 24 per cent year-on-year and is down 40 per cent from the 2021 peak of $1.8tn. The number of funds closed dropped by 28 per cent to 3,000 — about half the pre-pandemic annual rate.

Buyout funds, while still the dominant asset class, raised 23 per cent less capital than in 2023, with total buyout fund-raising 11 per cent below the five-year average.

Limited partners (LPs) are becoming increasingly selective, directing capital towards the largest and most experienced funds. This trend has enabled top-quartile managers to raise significantly larger follow-on funds, while many lower-quartile firms struggle to meet targets.

Private equity competition

Bain’s report highlights structural shifts that will reshape the PE industry. Rising costs, intensified competition for deals, and mounting pressure on management fees are creating a more challenging operating environment.

As scale becomes increasingly important, large firms are leveraging their advantages to secure capital and expand market share. Bain anticipates that mergers and acquisitions within the alternative asset management industry will play a greater role, with 180 transactions recorded since 2021.

Looking ahead, private equity firms must redefine their strategies to maintain a competitive edge.

Bain emphasises that success will depend on differentiation, operational excellence, and the ability to navigate a rapidly evolving investment landscape.

Gold rose on Tuesday on weak dollar and treasury yields, as investors awaited inflation data to assess the Federal Reserve’s policy path amid simmering trade tensions and fears of economic slowdown.

Spot gold rose 0.3 per cent to $2,898.27 an ounce as of 0501 GMT, while US gold futures firmed 0.1 to $2,902.50.

The dollar index hovered near a four-month low hit last week, making bullion less expensive for overseas buyers, while benchmark 10-year US Treasury yields fell.

Read-Gold hovers near record peak: What’s behind the rise?

“US dollar and Treasury yields are lower, which is helping gold catch a bit of support… The overall uptrend remains intact and the path of least resistance favours the upside,” said Ilya Spivak, head of global macro at Tastylive.

“Prices have been stable in a range between about 2,830 and 2,960 for the past four weeks… We would need to see a convincing break above or below these boundaries to conclude that some sort of lasting directional move is resuming.”

US President Donald Trump, in a Fox News interview on Sunday, declined to predict whether his tariffs would result in a US recession, sending global stocks down.

Trump imposed 25 per cent tariffs on imports from Mexico and Canada last Tuesday, along with fresh duties on Chinese goods, but later exempted many Mexican and Canadian imports from those tariffs for a month, creating uncertainty in the markets and fanning worries of US inflation and growth slowdown.

Investors now await US Consumer Price Index (CPI) data due on Wednesday to analyse the Fed’s interest rate stance.

Gold is considered a hedge against political risks and inflation, but if rising prices force the Fed to keep rates higher, the non-yielding asset could lose it allure.

The UAE Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, convened at Qasr Al Watan in Abu Dhabi, approving a series of strategic initiatives, including the National Investment Strategy 2031, social support policies, and key international agreements.

The meeting was attended by senior UAE leaders, including Sheikh Mansour bin Zayed Al Nahyan, UAE Vice President, Deputy Prime Minister, and Chairman of the Presidential Court and Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Deputy Prime Minister, and Minister of Defence for the UAE and Crown Prince of Dubai.

Sheikh Mohammed announced that the UAE aims to double its annual foreign direct investment (FDI) inflows from Dhs112bn in 2023 to Dhs240bn by 2031, increasing total foreign investment stock from Dhs800bn to Dhs2.2tn.

National Investment Strategy to focus on key sectors

The strategy will focus on key sectors such as industry, logistics, financial services, renewable energy, and information technology.

“The UAE continues to develop its economy, expand global markets, attract investments, and create the most business-friendly environment in the world,” Sheikh Mohammed said, as quoted by state news agency WAM.

The strategy includes 12 new programmes and 30 initiatives, including the Financial Sector Development Programme, One-Market Programme, Institutional Innovation Attraction Programme, and the ‘InvestUAE’ initiative.

The goal is to raise FDI’s share of total investments to over 30 per cent and its contribution to GDP to 8 per cent.

Strengthening international partnerships

The cabinet reviewed the UAE’s strategic partnerships with African nations, with Sheikh Mohammed highlighting that 95 per cent of approved initiatives have been successfully implemented. The UAE’s total trade volume with Sub-Saharan Africa has grown from Dhs126.7bn in 2019 to Dhs235bn over five years — an 87 per cent increase.

“The UAE will continue to build new economic bridges across the world and reinforce its role as a global trade hub,” he added.

The cabinet also approved 28 international agreements, including comprehensive economic partnership agreements (CEPAs) with Malaysia, New Zealand, and Kenya.

Advancing the digital economy and sustainability

Sheikh Mohammed reiterated the UAE’s commitment to its National Digital Economy Strategy, aiming to increase the digital economy’s contribution to GDP from 9.7 to 19.4 per cent over the next six years.

The cabinet also approved the launch of the National Green Certificates Programme for buildings, a voluntary classification system assessing sustainability standards in commercial, industrial, and residential developments.

Healthcare and social development initiatives

In healthcare, the cabinet endorsed a National Policy for Combating Health Risks, aimed at enhancing emergency preparedness, response scenarios, and recovery plans. The Executive Regulations for Organ and Human Tissue Donation and Transplantation were also approved, ensuring better access to life-saving treatments.

The UAE now has 13 licensed transplant centres, with a 30 per cent increase in transplant procedures covering kidney, liver, heart, lung, and pancreas transplants.

On the social front, the cabinet approved reforms to the national social support system, increasing the budget by 29 per cent to Dhs3.5bn and expanding the number of beneficiaries by 37 per cent.

Additionally, 3,200 individuals have transitioned from financial aid recipients to active workforce contributors.

The cabinet also approved regulations governing social support disbursement for unemployed individuals, as well as an Inflation Allowance for eligible categories, including beneficiaries of social assistance programs.

Research, development, and workforce initiatives

The cabinet approved the restructuring of the Emirates Research and Development Council, chaired by Sheikh Abdullah bin Zayed, to set national research priorities, develop policies, and enhance collaboration between the government, private sector and academia.

Additionally, the UAE approved a Remote Work System from Outside the Country for federal government employees, enabling the recruitment of global talent for specialised projects and studies.

Legislative developments

The cabinet issued multiple executive regulations, including the Federal Law on the Protection of New Plant Varieties, laws governing healthcare professions, mental health, and commercial fraud.

A Pharmaceutical Policies Committee was also established, chaired by Dr Thani bin Ahmed Al Zeyoudi, to oversee the sector’s regulatory framework.

Sheikh Mohammed concluded the meeting by reaffirming the UAE’s commitment to economic growth, innovation, and social development. “The teams continue their work, our growth trajectory accelerates, and every day, we witness our nation’s future becoming greater, stronger, and more prosperous.”

AIQ, a subsidiary of Presight, has secured a $340m contract from Abu Dhabi National Oil Company (ADNOC) to deploy its ENERGYai platform and associated AI solutions across ADNOC’s upstream operations, marking one of the largest applications of agentic AI in the energy sector.

The three-year contract follows the successful completion of a proof-of-concept phase and will see AIQ roll out ENERGYai to optimise ADNOC’s upstream processes.

The platform integrates large language models (LLM) with advanced agentic AI, enabling workflow automation across the company’s upstream value chain, from seismic analysis to real-time process monitoring.

Advancing ADNOC’s AI strategy

Musabbeh Al Kaabi, ADNOC’s Upstream CEO, said the initiative aligns with the company’s ambition to become the world’s most AI-enabled energy firm. “We look forward to working with AIQ to scale ENERGYai across our upstream business, consolidating our position as a responsible and reliable supplier of energy to global markets,” he said in a statement.

ENERGYai allows engineers to interact with ADNOC’s proprietary data using LLMs, enhancing efficiency and providing new insights.

By accelerating processes and reducing operational costs, the AI-driven system is expected to contribute to ADNOC’s broader digital transformation and sustainability goals.

A milestone for AIQ

Magzhan Kenesbai, acting MD of AIQ, described the contract as a “defining moment” for the company. “In partnership with ADNOC, we have developed a world-first agentic AI solution that is scalable across the energy value chain and has the potential to transform the industry. This deployment will unlock unparalleled efficiencies and support ADNOC’s sustainability ambitions,” he said.

Developed with input from ADNOC experts and in collaboration with G42 and Microsoft, ENERGYai leverages Azure cloud infrastructure, the Open Subsurface Data Universe (OSDU) framework, and OpenAI models.

Thomas Pramotedham, CEO of Presight, AIQ’s major shareholder, highlighted the project’s significance in advancing AI integration. “Agentic AI is widely recognised as the future of AI development. Through Presight’s collaboration with AIQ and ADNOC, we are shaping the future of energy with applied intelligence,” he said.

The first operational version of ENERGYai is expected by mid-2025, initially covering five AI agents for subsurface operations.

It will be test-deployed across several ADNOC upstream assets before expanding to more than 28 producing fields, including some of the world’s largest and lowest-carbon oilfields.

Read: How agentic AI will boost the digital economy across the Middle East

Metal Park has launched the first phase of its Dhs110m ($30m) Storage Hub in Khalifa Economic Zones Abu Dhabi (KEZAD), introducing the world’s first pay-as-you-go storage facility for the metal industry.

The hub, located in KEZAD Free Zone, will be developed in three phases and offer a combined storage capacity of 350,000 metric tonnes and 54,000 cubic meters of shelved storage exclusively for metals.

The facility is its first independent metal storage warehouse, aimed at providing businesses with advanced logistics solutions.

Phase one spans approximately 93,000 square metres and includes 26 overhead cranes with capacities of up to 40 metric tonnes, 55 loading bays for trucks and automated guided vehicles (AGVs), and the ability to load and offload 48,000 metric tonnes daily.

Additional features include vertical storage, a cantilever truck loading system, and three weighbridges, with two measuring 15 metres and one at 30 metres, each with a weighing capacity of 150 metric tonnes.

The facility is designed as a gated community with 24/7 surveillance.

The strategic location of the Storage Hub provides direct access to Khalifa Port via a modular road and connectivity to the Etihad Rail network and major highways linking Abu Dhabi to the Northern Emirates and the Gulf Cooperation Council (GCC) region.

Major milestone for KEZAD and Metal Park

Abdullah Al Hameli, CEO of Economic Cities & Free Zones at AD Ports Group, said the launch marks a major milestone for Metal Park and KEZAD’s growing industrial ecosystem.

“We are committed to the growth of ecosystems driven by innovation, acting as catalysts for industrial expansion in KEZAD and contributing to Abu Dhabi’s economic diversification,” Al Hameli said.

Saleh Shahrestani, chairman of Metal Park, emphasised the hub’s potential to enhance efficiency and reduce costs for the metal industry.

“As the region’s first metal fulfillment centre, it will help traders and stockists manage costs in a volatile market while allowing manufacturers to optimise production space and expand distribution networks,” Shahrestani said.

KEZAD Group, a subsidiary of AD Ports Group, is the largest operator of integrated economic zones in the UAE. It spans 12 economic zones across Abu Dhabi, Al Ain, and Al Dhafra, covering 550 square kilometres and housing more than 2,100 investors across 17 key industrial sectors.