PE funds continue to stay upbeat on UAE despite West Asia conflict

Private equity activity in the UAE has persisted despite escalating regional tensions, with Blackstone committing $250 million to a newly established Abu Dhabi payments and data intelligence platform and at least two new Gulf-focused PE vehicles launching since the conflict began. Blackstone’s investment into Advanced Digital Gaming Technology (ADGT) came through a strategic partnership with Abu Dhabi-based Raya Holding and technology partners NRT Technology and Sightline Payments. New funds launched in the country include Nahda Capital Partners’ Nahda GCC Fund I and Hong Kong-headquartered Gaw Capital Partners’ Gaw Tamkeen Nexus Fund.

"We see significant opportunity to deploy capital at scale in the UAE to build companies that can grow both domestically and internationally, despite near term headwinds," said Jon Gray, president and COO of Blackstone, outlining the firm’s initial focus on deployments across the UAE, the Middle East, Africa and select international corridors.

Recent deals and fundraisings

• Blackstone committed $250 million to ADGT, a payments infra and data intelligence technology platform based in Abu Dhabi, in partnership with Raya Holding, NRT Technology and Sightline Payments. The platform aims to support regulated digital markets globally.
• Nahda Capital Partners launched Nahda GCC Fund I in Abu Dhabi Global Market (ADGM) earlier this month, targeting $300 million for a control-oriented mid-market strategy focused on the UAE, Saudi Arabia and the wider GCC. The fund is led by founder and managing partner Inigo de Luna.
• Gaw Capital Partners, which manages $34.4 billion in assets, launched the Gaw Tamkeen Nexus Fund with a $400 million target and has already reached a first close with $150 million in commitments. The firm is establishing a presence in Abu Dhabi and Riyadh.

Context and strategy

While PE and venture capital deployment activity has slowed since the regional conflict that began on February 28, firms say interest among limited partners remains strong and that the UAE’s longer-term structural prospects justify continued investment. Inigo de Luna framed the launches as planned moves: "The launch has been planned for a long time...These are difficult days and the priority is safety and de-escalation. At the same time, we see the current situation as a severe but temporary shock rather than a change in the long-term trajectory of the UAE and the wider GCC."

Gaw’s regional vehicle is positioned as an extension of its growth equity strategy and will focus on high-growth, tech-enabled companies across the UAE, Oman, Qatar and Saudi Arabia. Andrei Rotaru, managing partner and head of Middle East at Gaw Capital, said the fund will prioritise businesses with resilience across cycles: "We are focusing on sectors and business models that are more resilient through cycles, particularly those that are asset light, with strong cash flow visibility, essential service characteristics, or structural demand drivers."

Outlook

PE firms are concentrating on resilient sectors such as fintech, AI, digital infrastructure and climate-tech, and pursuing control-oriented or growth equity strategies that emphasise governance and cash-flow visibility. With Nahda seeking to raise $300 million and Gaw already securing $150 million toward a $400 million target, investors and managers appear to be betting that temporary volatility will not derail the UAE and broader GCC market opportunity over the medium to long term.