The GCC’s private capital growth is driving new demands on valuations
In the Middle East – particularly in the Gulf – private capital has seen strong growth, driving investment activity, transactions and strategic partnerships. Srividya Gopal, Managing Director and leader of Lincoln International’s Middle East practice, shares her perspective on the market’s evolution and what it means for valuation practitioners.
The region is witnessing significant growth in private capital investments and M&A. What have been the key reasons behind this acceleration?
Global capital markets are witnessing significant volatility and facing challenges caused by geopolitical uncertainties, trade wars and technology disruptions. Hence, investors are looking for more stable market environments to either invest in or to manage their investments that can not only provide them returns but also diversification and resilience.
An increasing number of investors are seeking efficient financial hubs that can manage and grow their capital, offer lower risks and a jurisdiction that is favourable from a regulatory, tax and residency perspective. The UAE ticks all the boxes, with a highly business-focused and business-friendly environment that additionally emphasize on governance and regulations.
The results are evident to see. In 2025, Middle East M&A value crossed $100 billion and grew at over 100% year-over-year, making it one of the fastest-growing regions globally. Outbound M&A and investments from GCC investors rose sharply, with domestic investors deploying capital at scale in North America and Europe.
There is also a venture capital boom and a rapid emergence of unicorns in the region.
The momentum is being supported by strong levels of sovereign wealth fund (SWF) capital and the government’s proactive investment agendas. There is significant capital available and being deployed by sovereign wealth funds, with estimated assets under management of over $5 trillion.
With more private capital being deployed, there is growing focus on standards for valuations. How do you see this unfolding?
While private credit investments are increasing, the region faces an underdeveloped market for private credit valuations. As a result, there is an increased emphasis on governance, transparency, independence and adherence to global best practices.
As the private investment volume grows, there will need to be wider exit options, including secondary transactions and continuation funds that also require independent transaction opinions or valuations.
These trends are driving the market from a broader, deal-based professional services market to one that demands deeper and specialized skills, experience and expertise around valuations and other areas. This must start with improved knowledge and usage of International Valuation Standards (IVS) and other global guidance and best practices.
This is an excellent opportunity for global valuation professionals, as well as standard-setters, to bridge this gap and bring these practices to market.
Globally, technology and intangibles are high-growth areas in the valuations domain. What do you see in the Middle East?
Intangibles and intellectual property (IP) are key topics for deals around the world. While we look at current topics like AI, ESG impact, complex capital structures and more, our evergreen topic is intangibles given it is also a critical part of a business.
Both topics are extremely relevant for the Middle East as the region moves from a traditional industry focus to a new-age, IP-led and tech-enabled rapid growth trajectory. There needs to be a push for greater focus on these asset classes from investment, transaction, tax planning, financial reporting and financing perspectives.
Before relocating to the Middle East, you were involved with the valuation profession and its advancement in Southeast Asia for nearly 15 years. How does the evolution of the valuation profession in the region compare?
In Singapore, where I was previously based, the valuation profession has been around for decades, but it got a significant impetus when IVAS was set up in 2016 through an industry-led, government-supported initiative under the auspices of the Ministry of Finance. It has undertaken a variety of initiatives, including registering valuers across many countries; developing a curriculum, continuous education programs and practice guides; and constructing mechanisms for disciplinary action.
The Southeast Asian economy saw a rapid increase in mergers and acquisitions (M&A) transactions as well as private equity and venture capital investments in the last decade. The foundation IVAS laid has significantly helped professionals and stakeholders address this massive need for valuations, along with a focus on governance and independence.
The Middle East, especially the GCC countries and others in the Middle East and North Africa (MENA) region, is at a stage of rapid business and economic development that has led to a substantial increase in private capital investments and M&A transactions. This certainly increases the focus on independent, transparent valuations and adherence to global best practices and standards.
Finally, what is Lincoln International’s plan for its Valuation practice in the Middle East?
Lincoln International officially established an office in the UAE last year, registered with the Dubai International Financial Centre, to cover the Middle East region. Our aim is to bring our deep expertise in valuing sophisticated businesses, private capital investments, complex instruments, cross-border transactions and more to this region.
At the global level, we provide over 25,000 valuations annually to a few hundred global investors and corporates, giving our advisory professionals access to massive amounts of private capital markets data. Earlier this year, we officially launched the S&P Lincoln Senior Debt Index Series in strategic collaboration with S&P Dow Jones Indices to further address the critical need for transparent, independently calculated benchmarks in the private capital markets.
All of these insights and data are critical assets for the private capital market in the Middle East.
We strive to be a thought leader in this market and support clients with higher-quality, deeper technical skills, as well as creating more awareness for valuation standards and best practices, with the aim of supporting the valuation profession and users of valuation services with Lincoln’s data-driven approach.
