Published: March 28, 2011
Democracy will produce greater dealmaking opportunities, says firm.
The civil unrest witnessed in parts of North Africa in recent months will improve the region’s long-term investment prospects, an Egyptian private equity firm has said.
Representatives for Citadel Capital told an emerging markets private equity forum in New York that recent events have not affected North Africa’s investment fundamentals and that, despite increasing global energy prices, weaker local currencies and reduced foreign investment levels, the region will benefit from new opportunities when the situation stabilises.
The moves towards democracy in the region should increase transparency and eliminate corruption, the firm added, allowing subsidies to be better directed under the scrutiny of elected parliaments.
Citadel has US$4bn invested in the Middle East and Africa and expects events in the region to affect the value of its portfolio negatively in the short-term. However, it predicts that new opportunities are likely to arise in the next 12-18 months.