Access comes with compromise
The differences between public and private markets are clear in how investors participate. Listed markets allow easy entry and exit, along with regular pricing and discovery. Private markets operate with longer timeframes and less frequent liquidity.
“Public markets offer liquidity and transparency, while private markets offer long-term capital, control and return potential,” said Tajinder Virk, co-founder and Group CEO of Finvasia.
Private investments often require capital to be locked up for years, and exit routes can be limited. In return, investors gain exposure to companies and assets not available on public exchanges.
More value resides outside the public markets
A large part of economic activity now takes place in private companies. Many firms are delaying listings or choosing not to list at all, keeping growth within private ownership structures.
Private market assets under management have exceeded $13 trillion globally, backed by institutional investors such as sovereign wealth funds, pension funds and large family offices.
“Private markets are moving from being an alternative allocation to a core component of global portfolios,” said Virk.
Investor interest is driven by diversification, return expectations and access to sectors that are more difficult to reach through listed markets.
Middle Eastern investors raise allocations
In the Middle East, participation in private markets has steadily expanded. Sovereign wealth funds and large family offices are active across global transactions, often committing capital at scale.
Recent deals highlight this trend, with regional investors engaging in major international transactions and building partnerships through private credit, infrastructure and private equity.
“The ecosystem is smaller than the US or Europe, but more agile, with faster decision-making and increased participation from global fund managers,” said Virk.
Saudi Arabia and the United Arab Emirates continue to account for a large share of activity, supported by economic diversification programs and strong liquidity.
Growth spreads across segments
Several areas within the private markets are seeing strong momentum. Private credit has grown rapidly, supported by demand for flexible financing and the reduced lending capacity of traditional banks.
The segment now encompasses a wide range of strategies, including asset-backed lending and infrastructure-related financing.
Investment in infrastructure is also expanding, driven by demand for energy projects, transport networks and digital systems such as data centres.
Private equity and venture capital remain active, particularly in the technology and innovation sectors, although investors are becoming more selective.
Filling the gaps in the financial system
Private markets play a role alongside banks and public markets by financing businesses and projects that require long-term capital.
They support companies at various stages, from early development to expansion, and help finance large-scale infrastructure.
“Private capital supports businesses before they are ready for public markets, enabling innovation, job creation and economic expansion,” said Virk.
Flexible deal structures allow investors to tailor financing based on the needs of each project or borrower.
Risks remain part of the picture
Private market investments require careful evaluation. Limited liquidity means that capital is committed for longer periods and valuation practices may vary across funds and strategies.
Access is also limited in many cases, with participation limited mainly to institutional and professional investors.
As the market grows, attention is shifting to governance standards, reporting and ways to improve liquidity without changing the long-term nature of the asset class.
A greater role in global portfolios
Private markets are becoming more prominent in how capital is distributed, both globally and in the Middle East. Investors are looking beyond listed assets to capture a wider array of opportunities.
In the region, strong availability of capital and ongoing investment programs are supporting this trend, with private markets playing a greater role in financing growth across sectors. The balance between public and private markets continues to evolve, with each serving a different purpose in the investment landscape.
Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation and the big changes shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series. Her reporting has taken her from breaking news to feature-length shows and high-profile interviews. Nivetha has interviewed Prince Khaled bin Alwaleed Al Saud, Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu, the IMF’s Jihad Azour, and a long list of CEOs, regulators and founders who are reshaping the region’s economy. An Erasmus Mundus journalism alum, Nivetha has shared classrooms and newsrooms with journalists from more than 40 countries, which perhaps explains her weakness for data, context and a good follow-up question. When she’s away from her keyboard (AFK), you’ll most likely find her at the gym with an Eminem playlist, enjoying One Piece, or exploring games on her PS5.
