SWOT Analysis
Strengths
- High oil prices and increased perception of bargains in the international market
Weaknesses
- Small market with very limited VC/PE activity and low attractiveness compared to the other GCC countries
- Any entering private VC/PE company competes against established governmental and quasi-governmental funds
Opportunities
- Deal flow opportunities from family owned conglomerates
- Investment opportunities also exist in the form of second and third generation family owned business offices
Threats
- Investment from government owned funds may decrease as the country is running a budget deficit
- Considerable reduction of the number of acquisitions should oil prices drop significantly
Outlook
- In the short-term, the activities of private funds may be constrained as the government has cash surpluses, some of which will be spent domestically. However, the government funds started investing overseas especially in real estate and the oil sector, and become less keen to take equity stakes in local private enterprises
Expert: Ragheev Singh, Partner, E&Y Oman |
Comparison within Peer Group
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Separate VC and PE Indices
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