The big private equity question now is how to exit well

A decade ago, every conversation about private equity decisions ended with the same question: can we get out? Today, the focus is on how to grow, improve and exit well.

Initial public offerings are now a realistic option, especially in Saudi Arabia, and the UAE’s exchanges are also building credible pipelines. Trade sales, secondary transactions and consolidation deals are common.

There were 271 mergers and acquisitions (M&A) deals in the Middle East in the first half of 2025, up from 228 the previous year, according to LSEG data. The UAE led by the number of such deals – evidence of growing confidence and experience among buyers and sellers.

These numbers reveal how private equity is moving from the margins to the mainstream across the Gulf. This transformation reflects deliberate policy, market maturity and stronger domestic capabilities.

The Dubai International Financial Centre and Abu Dhabi’s financial centre ADGM reported strong growth in the first half of the year to reach 7,700 and 2,972 active companies, respectively. Together, they have made the UAE the region’s operating base for private capital.

There has been a sharp rise in the number of companies in the ADGM financial free zone. Photo: ADGM

As a result, capital markets are more active, exit routes broader, and investors can now pair equity with private credit to bridge valuation gaps and close deals with greater confidence. The centre of gravity is shifting from fly-in fundraising to on-the-ground deployment.

From capital to capability

Sovereign and quasi-sovereign institutions remain at the core of this story, but their roles are evolving as they continue to anchor strategies and set direction in priority sectors such as AI infrastructure, logistics, health care, education and food security. At the same time, they are increasingly ready to monetise mature holdings and use IPOs and secondary sales to deepen domestic markets. Saudi Arabia led Gulf Co-operation Council IPO proceeds in the first half of this year, said Markaz, while the UAE’s pipeline of listings is expanding steadily.

The financing toolkit has also matured. The DIFC and ADGM now have dedicated frameworks for private credit funds, giving managers more flexibility to combine lending and equity. This reflects the region’s growing comfort with sophisticated financing structures that support execution a