The leading private equity firm in the Middle East and Africa is actively reviewing investment opportunities in Saudi Arabia, top company officials said on Thursday. Citadel Capital, which controls investments of $8.3 billion in 15 industries spanning 14 countries, is looking closely at opportunities in Saudi Arabia. The firm was founding partner of the “Outlook Saudi Arabia - Investment and Private Equity Forum 2010,” which took place in Riyadh earlier this week in partnership with the Saudi Arabian General Investment Authority (SAGIA). “Saudi Arabia has long been on the private equity map as a source of funding, but today it has also become a very attractive investment destination,” said Citadel Capital Chairman and Founder Ahmed Heikal. “A long-standing commitment to market modernization and advantageous macroeconomic fundamentals are moving the KSA's domestic market onto the global stage. Its advantages as an energy rich country, meanwhile, and the government's commitment to infrastructure build up and other investment support a unique opportunity for private equity investors.” Private equity activity in the Middle East and North Africa (MENA) has largely been dominated by Egypt, which attracted 24 percent of industry investments by value in 2009 (excluding Citadel Capital's $1 billion investment in Egyptian Refining Company), according to industry data. Saudi Arabia attracted a 17 percent share of MENA private equity investments. “The challenges of 2009 saw a slowdown in bank credit to the private sector,” noted Citadel Capital Managing Director and Co-Founder Hisham El-Khazindar. “This development has created a nascent market for corporate control as well as a rising awareness of both the importance of non-bank financing and of the added-value that world-class private equity players can bring.” “The broad diversification efforts underway in the Kingdom have created new opportunities for private-sector players beyond oil and gas, the country's traditional investment driver. “Moreover, the Kingdom has a project pipeline worth more than $692 billion widely distributed across construction, petrochemical, oil and gas, infrastructure and power projects.” Demographic appeal also factors as a significant support to private investment in Saudi Arabia. With a population of more than 25 million growing at an average rate of 2.2 percent over the past decade, domestic demand and spending are rising rapidly, and consumers are under-leveraged by both regional and global standards. “The real value-added of private equity comes in form of a long-term approach that allows investors to build potential and harness opportunities, whether these be industrial or consumer based,” said El-Khazindar. “Saudi Arabia has long been overlooked as a destination for investment funds, but this will change in the medium term ... on the expected liberalization of foreign investment regulations in the medium
