Inside the $673 Billion MENA Start Up Investment Sector

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The Year 2018 demonstrated to be a productive one for MENA new businesses notwithstanding some lessening in the arrangements. The Middle East and North Africa have been noticeable areas with respect to the rising monetary players and MENA adventure speculations continue getting featured among the top financial news around the world. This MENA startup news story features the present bits of knowledge of MENA adventure speculations. It uncovers the accomplishments of the top players and the centrality MENA startup ecosystem is picking up in this age.

MENA Startup Investments in the Year 2018

The total number of MENA startup speculation deals in the year 2018 was 255, which is a reduction of 16% contrasted with the most recent year. In any case, the estimation of the arrangements climbed somewhat by 1% to $673,519,071. The general number of speculators in the MENA locale has backed off yet the estimation of the ventures has seen an expansion which implies that enthusiasm for the area is still on the ascent.

 

Arabnet revealed that the quantity of new assets in the area has backed off over the most recent two years, which could be an aftereffect of the absence of lucidity in the macroeconomic and political standpoint.

United Arab Emirates- The Top Player

As usual, the United Arab Emirates stays overwhelming in the MENA startup ecosystem. The UAE saw a reduction in its number of arrangements, the total number of arrangements in the year 2017 was 65 which dropped down to 45 this year. In spite of the decline, the UAE accomplished the best number of arrangements in the area. The failure rate of the new businesses in the UAE additionally dropped which gave it another increase in the positioning. As of now, the UAE has the biggest extent of the MENA venture which aggregates to 31% and looks enormous when contrasted with the 40% extent facilitated by Egypt, Saudi Arabia, and Lebanon joined.

Other Rising Players of the MENA Region

The Middle East players, for example, Oman and Bahrain saw an expansion in the number of arrangements. Oman saw an expansion of 6 deals, Bahrain saw an increment of 10 arrangements, and Yemen saw an increment of 7 deals from the previous year.

Oman announced 22 new arrangements, Bahrain revealed 17 while Yemen detailed 10 new arrangements in 2018. Besides the Middle East area, Tunisia reported 29 new arrangements in the year contrasted with 21 bargains in the earlier year. These measurements demonstrate that these are the promising rising players in the locale that guarantee a brilliant future.

The Investors across the MENA Region

The MENA district saw ventures from 242 technology investors, which is a development of 25% from the year 2012. In any case, the number of new investors was just 16 which is low compared to the passages of 42 and 41 in the years 2015 and 2016 respectively. Beginning period fundings saw an ascent in the year 2018 and at present records for 48% of the whole financial specialist network. Then again, a decline of 50% since 2017 was reported in growth funds.

 

One explanation behind the enthusiasm for the beginning period of new companies is the achievement of new businesses since 2013. 86% of the whole new businesses established in 2013 are still ready for action. As per the report by Arabnet, just 14% of the new companies established since 2013 have fizzled. The purpose behind the accomplishment of these beginning period new businesses may be the fundings and help conceded by governments everywhere throughout the area. The private activities in the locale additionally helped these new companies succeed.

 

Another investigation announced that out of 127 new companies established in 2013 that had received funding, 40 percent succeeded with regards to picking up the second round of financing. 41% of the new businesses that got fundings got a triumphant shot on the third round of financing and 29% of those proceeded to verify the fourth round of effective subsidizing.

EMEA Private Equity Market

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Private equity has become a successful player in investment practices. In this article, we will discuss the nature of private equity and how it has dominated in the EMEA region, especially in the UK and Italy. The second quarter of the year 2019 shall be scrutinized and the frequency of PE investments during this period shall be investigated.

What is Private Equity?

The term private equity is generally used to describe different kinds of funds invested by different investors that are collected in millions and billions for buying shares in companies.
Private equity contains funds from investors directly investing in companies or even buying them out. This kind of fund is not listed on a public exchange.
Private equity may be engaged in buying a company outright. It will collect the funds coming from accredited investors and institutional investors, and use them to buy an entire enterprise.
Private equity’s definition may differ from person to person; however, this may be a general definition that everyone shall agree upon,
“Private Equity is a class of investment that uses the funds generated from a pool of investors and uses it to buy stakes in established companies rather than starting ones.”

EMEA Private Equity

Private equity allows thousands of small investors to buy stakes in large companies. On the other hand, it allows huge enterprises to accelerate their development using the pool money. In this article, we will discuss the latest EMEA private equity investments throughout Europe. The news of huge investment deals in the UK and Italy proves the successful penetration of EMEA private equity into Europe.

A Snapshot of the Second Quarter of the Year 2019

Global General Partners decelerated investment activity in Europe, the Middle East, and Africa (EMEA) in the second quarter of the year 2019. A decrease of 18% was reported in the number of entry deals which resulted in losing 299 deals of the past year. A total of four large deals were successfully closed, valuing at €11.8 billion in total. The numbers from the past year stood at €15.5 billion, which indicates a 14% loss in the aggregate capital deployed, from €28.6 billion to €24.5 billion. On the brighter side, the deal size proved to be quite sturdy and entry size deal grew by 7%, from €33.3 million last year to €35.5 million this year.

The UK Claimed Large Chunks of Investments

Compared to the other EMEA regions, the UK proved to be the most prolific player in securing large chunks of investments from global General Partners’ capital. The large deals secured by the UK included the purchase of equity stakes in Quadgas Midco Limited for €2.3 billion and Travel Port Worldwide Limited for €3.8 billion.
Due to these huge deals, the UK was successful in increasing its investments by 70% to a total of €9.1 billion versus €5.3 billion secured in the same period of the last year. These numbers are surprisingly amazing regarding the 22% loss in the total number of deals in EMEA.

The Rising Middle East

The Middle East was not far behind Europe as it successfully managed to deploy €5.2 billion of the aggregate capital. The single purchase of a 40% equity stake in ADNOC Oil Pipelines – Sole Proprietorship accounted for 67% of the entire chunk of the aggregate capital, valuing at €3.5 billion. The Middle East ended the quarter by securing 85 deals with an increase of 11%.

The Successful IT Sector

If we take a look at the sector-wise investments made by global General Partners, IT stands out prominently among the other sectors, comprising a total of 40% of the overall deal count in EMEA. Rising quickly for the past few years, IT has successfully cemented itself as the favorite area of investment by global General Partners. The second quarter of the year 2019 witnessed an increase of 70% from the last year. The aggregate capital in IT stood at €7.1 billion versus €4.2billion in the same period of the year 2018.

3 Questions You Should Ask Yourself Before Hiring an Investment Consultant

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In our last post we promised you the three of the major questions that one should ask himself before hiring an investment consultant. Well, here’s our take on this.

Is it the right time to hire an Investment Consultant?

Sometimes people get so confused with the importance of investment consultant that they hire one when they really don’t need to. “Is it the right time to hire an investment consultant?”.

Timing is critical when making capital or investment decisions. As a business owner or an individual it is important to be aware of your current position whether mentally or financially.

You should have the right state of mind and your cash flows need to be sufficient to grow your business and/or your portfolio returns. It is important to scout a seasoned investment consultant before things get too big to control or too distressed to revive.

Is this Investment Consultant capable of keeping it simple? 

It is a common practice to actually like the complex investments. The more complex an investment is, the smarter it sounds. However, in most cases, if it is not simple to understand, then it is risky business. The consultant’s job is to make it simple, meanwhile ensuring a level of integrity to keep you well informed about the risks associated and the potential of unfortunate downturns.

Remember that the right investments should be comprehensible and structures should be simplified to allow seamless, yet secure processes and procedures. Even if the investments don’t make sense to you it is the job of the consultant to bring sense and enlighten you.

 

Find out the advantages of hiring a ‘real’ investment consultant.

What is the Price for Advice?

Valuable advice is priceless. There is no set rule for the price of investment advice. A business or investor seeking professional guidance around his/her capital and investment goals should always analyze the market and gather a good knowledge of what investment firms are charging. One should always know about the rates before hiring a consultant.  

— If you have other questions on your mind, feel free to ask by joining the conversation at the Gulf Invest telegram group. 

Advantages of Hiring “Real” Investment Consultants

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Advantages of Investment Consulting

Looking at the importance of Investment Consulting one must wonder exactly what advantages an investment consultant can provide him or her. Here is a breakdown of the advantages you should be on look out for when hiring an investment consultant.

Deep Financial Knowledge

First and the foremost advantage of investment consultant is the financial knowledge, not just understanding numbers but also understand how to structure, restructure, engineer and reengineer the mode of which the financial activities of any entity, whether company or personal are and will be conducted taking into consideration the past records to optimize returns in the present and the future.

Aside from this general knowledge these consultants spend a certain time period of their lifetime studying the financial industry. They are well researched fellows who are always in touch with the ups and downs of the financial industry.

A Clear Path

When laymen without any sound financial knowledge look to invest somewhere often times they choose a vague path. This comes from the lack of knowledge.

When someone doesn’t know about the rules of finance they are bound to get unorganized and mess things up. Investment consultants provide a clear path which tells the investors where their money is, and should be, going. An organized structure is built so that the operations of investing follow a smooth pattern.

Time is saved up

Investment Consultants save a great deal of time for their clients so that they can focus on their lives and their day to day business. Some investment consultants take the responsibility of managing the portfolio of their clients which takes off some more work off their plates.

An Investment in Itself

Hiring an investment consultant is an investment in itself. An early investment of the hard earned money is put into the bet of the knowledge and advice of an experienced individual. Simply put, one invests and pays money for the advice of an experienced professional.

 

Read more: 3 Major Questions you should ask yourself before hiring an investment consultant.

Types of Investment Consultants

Generally, investment consultants are broken down into 4 main categories which are as follows:

Financial Planner: This type of investment consultant manages the personal finances of their clients from retirement plans to college fees.

Registered Representatives: These are the commission based investment consultants. Their responsibilities include selling investment and insurance products. These guys usually work for financial organizations that make and sell financial products and instruments.

Money Managers: These are the guys who make the investments on the behalf of their clients. These people usually work for the hedge fund firms.

Financial Advisors: Financial advisors are the people who take some fees and provide general as well as personal advice.

How to Hire an Investment Consultant

This is the biggest concern to an investor. When you hire an investment consultant you actually put your money in their trust. This is the biggest decision of the investment journey for most and should be handled carefully. In the next post we will outline

 

— Join the conversation at the Gulf Invest telegram group

 

Arabian Gulf Investments

If you need investment consulting then it should come from a reputable company that can promise to make good use of it. Arabian Gulf Investments is one of the companies that passed the test of our surveying radar. This company is a group of serial entrepreneurs full of the current market trends.

The most important factor of any investment consulting company is the experience. Arabian Gulf Investments have compiled a team that has loads of experience combined with the current practice. The combination of contemporary trends and the past experience makes a company strongly credible. The company offers Buy-Side Consulting as well as Sell-Side Consulting so that the clients enjoy both sides of consulting at the same place.

Wealth takes hard work to accumulate and when it is done accumulating it should be treated like an infant. Retirement funds and life savings are hard earned money and should be invested in the right direction. An investment consultant is crucially important for any kind of investments done with such money.

 

 

 

Sell Side vs Buy Side Consulting

Investment consulting is an essential part of any investor or investing company. Investment consultants heavily influence the decisions of investors. According to a study, more than half of the corporate funds are currently using investment consultants. Investment is a serious business and should always be conducted with extreme precautions. Consultants are the people who have years of experience working in the financial industry and provide valuable advice for a fee. There are two types of consulting; sell-side consulting and buy-side consulting. Let’s take a look at both and find out how you can utilize both of these.

 

What is Sell-Side Consulting?

sell side vs buy side

 

Sell-side is the part of the industry that is involved in the creation, promotion, analysis, and sale of stocks, bonds, foreign exchange, and any other financial instrument. Sell-side people and firms create products and make them available for the buy-side to buy.

The sell-side consultants are the guys that offer their expertise to the investors selling their bonds or stocks. Whenever a sale is made money runs across different hands. Some make money off it and the others lose a little. Sell-side consultants are the people who provide the service of advising the investors so that they can make the right decisions regarding sell. They use their experience of the financial world to analyze the true potential of the stock, the buyer and the timing of the sale. They charge a fee and devote their time and expertise to make sure that their client doesn’t lose any money.

The Importance of Sell-Side Consulting:

Investing is one of the most important games in life. It teaches one the essence of decision making, the success of it, and the price of the failure. These decisions on the sell-side include the timing of the sale, the acceptance of an offer, and the evaluation of the buyer. However, one decision that haunts the investors most is, should they hire a sell-side consultant?  Or should they handle all their sales individually?

It is quite surprising to see that many business owners often make the mistake of handling all of their sales without the guidance of a sell-side consultant. The common factor behind these kinds of mistakes is always the perception of saving as much money as possible. People like it when they save the charging fees of the consultant. The lesson here is to look at investment as a marathon rather than a sprint. You make wise decisions losing short term money to gain a long term financial advantage. A sell-side consultant provides many benefits including the navigation of the sales. One should never attempt to handle all the sales even if the buyer is a potential one. Here are some of the best benefits a sell-side consultant provides:

 

True Value of the Asset

Investment is all about how you value the assets and companies. The most important factor of any sale negotiation process is the correct and most importantly fair valuation of the company. You can set the best sale price only when you perform an accurate and fair business valuation. In the investment business, the buying party, as well as the selling party, wants the best price for the sale. What they mean by this is the price that they are happy at. The only thing that can make both the parties happy is the fair evaluation of the company. A sell-side consultant analyzes and extracts the most accurate valuation possible.

 

Sell-Side Consultants Clear the Sale Functions

Business is simple when you are operating a small store on the corner of your street. But when the business enters the global financial industry and starts dealing in bonds and stocks it becomes confusing. The factors affecting the prices of businesses and products increase dramatically. If you feel like selling your business at any such time you can fall into any pit any time. Even if you manage to choose the right buyer the process can eat up your time and bring in a situation where you will have to sell it at an unfair price. A sell-side consultant is experienced and familiar with such pit holes. These consultants make the process more efficient and quick. When the deal processes faster and more efficient, the chances of getting the best price increase dramatically.

 

DIY loses Money

A business deal isn’t normally as simple as it seems. The business owners who like to negotiate their deals often find themselves trapped in an inescapable situation and soon the deal starts falling apart. If the deal diminishes in the middle of the process this not only makes it impossible to deal with the same buyer again but also sends a bad signal to the market. This saves you from selling your asset below the fair price.

What is Buy-Side Consulting?

buy-side-consulting

The other side of Wall Street’s financial coin is the buy-side. Buy-side guys work insurance and mutual funds and buy large chunks of securities. Basically buy-side is the part of Wall Street that buys securities for money-management practices. A buy-side business is involved in purchasing securities, stocks, and other financial products for the clients.

A buy-side consultant provides the service of valuable advice and guidance to the clients buying stocks, bonds or securities. Buying stock in any company or any bond is a huge decision on the buyer’s part. Buy-side consulting provides the buyer with an experienced and expert outlook on the deal and reduces the chances of a risky decision.

 

The Importance of Buy-Side Consulting:

One of the most important decisions in an investor’s life is to choose which bond or stock to buy and which offer to leave. The workings of the financial industry are complex and often things start looking murky. At such times buy-side consultants act like an angel. Here are some of the benefits a buy-side consultant can bring you.

 

An Expert Analysis

The most important aspect of buying any bond or stock is to analyze its true value. The analysts associated with the investment industries release ratings on every bond or stock. However, one should be careful of these analysts as well. The easiest way to do that is to hire a buy-side consultant who can conduct expert analysis over your next investment.

 

Time-Saving

If you put yourself entirely in the investment business soon you will find yourself completely isolated from the world. The analysis of the companies, risk of the deals, and the timing of the sales are time-consuming processes and at the same time most essential for business. A buy-side consultant takes up the job of conducting any kind of research which might eat up your family and personal time. Investment is a long marathon and needs to be run as smooth and patient as possible. A buy-side consultant charges you a little fee and takes all the menial work for himself.

Sell-Side V.S Buy-Side: Functions, Goals & Consulting:

There are some essential differences between the two faces of Wall Street. Here are the salient features of buy-side V.S the functions of the sell-side:

Sell-Side:
Sell-side people make financial products and facilitate the decisions of the buy-side firm.

Buy-Side:
Buy-side is involved with the entities associated with the investment making.

Institutions:

Sell-Side:
Investment Banking, Commercial Banking, Stock Brokers, Market Makers

Buy-Side:
Hedge Funds, Asset Managers, Institutional Investors, Retail Investing.

Goals:

Sell-Side: Sell-side firms make and pitch assets and opportunities.

Buy-Side: Buy-side firms have the capital and look to make more money by buying the assets made by the sell-side firms.

Consulting:

Sell-Side: Sell-side consulting deals with negotiation processes and aims to make the deals smooth for the clients.

Buy-Side: The investors looking to buy financial products such as bonds and stocks benefit from the buy-side consulting to make the wisest investments.

The financial industry is evolving rapidly and only the ones busy in the current workings of the industry are aware of the newer products, services, and their impact on the overall functionality if the industry. When these experienced individuals become consultants they bring in the financial expertise and help their clients make the best investments. DIY in investment business never pays off. Sell-side, as well as buy-side consulting, is highly recommended if you wish to make the right investments.