Greenstone GCC Investor Insights Report 2022

(Dubai, UAE)

Greenstone GCC Investor Insights Report 2022 findings show that GCC investors plan to increase their allocations to private equity and real estate funds in 2023

Greenstone Equity Partners today announced the public release of its first annual Greenstone GCC Investor Insights report, which represents the most comprehensive GCC-oriented investment sentiment research conducted to date. The report is based on responses from 110 qualified investment representatives from within the GCC.

The GCC region has developed into a thriving community of institutional investors and family offices which are increasingly active in global alternative assets, providing substantial growth opportunities for private capital managers looking to diversify their investor base and scale global assets under management. Today, GCC High Net Worth Individuals represent $3 trillion in investment capital and GCC Sovereign Wealth Funds (SWFs) manage over $3.2 trillion in assets, approximately one-third of the world’s SWF assets.

Omar Al-Gharabally, Chief Investment Officer of Greenstone, said:

Historically, there has been minimal research disseminated about investor sentiment in the GCC.  Having had access to comprehensive data as a result of working closely with a very large base of investors in the region for over a decade, Greenstone has decided to publicly share a portion of its data on GCC investor sentiment and trends via annual GCC Investor Insights reports.

Why GCC investors are favoring alternative investments

As global economies face surging levels of inflation, recession, and turbulent markets, investors look towards selected alternative investment funds which perform well during such conditions. According to the Greenstone report, more than half of GCC investors are planning to increase their investments into Private Equity and Real Estate funds in 2023.

In reflection of the survey results, Alex Gemici, Chairman and CEO of Greenstone, said:

For the first time in 40 years, developed economies are experiencing meaningful inflation. The execution of text-book central bank anti-inflationary monetary policy is going to very likely result in recession in Europe and the U.S. Since inflationary market conditions are not a surprise and were widely expected over the last year, sophisticated investors have been increasing allocations to certain alternative fund strategies designed to take advantage of inflationary or recessionary markets.

The GCC continues to be one of the world’s most lucrative regions for fund managers to broaden their base of investors. Greenstone’s findings show that GCC investors are continuing to seek global investment opportunities to achieve geographic diversification, with 76% of investors identifying investing outside of MENA as their top priority, with North America, Europe, and the UK set to receive the highest volume of investments from the region.

Alternative investment structures continue to deliver expected returns

GCC investors continue to be satisfied with the returns on their alternative fund investments.  The survey found that 84% of GCC investors confirmed that their investments in Real Estate have met their return expectations, closely followed by 73% in Private Equity and 72% in Private Debt.

About the Greenstone GCC Investor Insights Report 2022

This is the first edition of the annual Greenstone GCC Investor Insights report. The responses were compiled via an online survey as well as direct meetings with representative investors conducted through Q2 2022. Responses have been aggregated from 110 qualified individuals and 88 unique investment organizations across the GCC countries of Saudi Arabia, Kuwait, Oman, Qatar, and the UAE.