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Alkhabeer Capital targets SMEs as part of its private equity strategy

June 9, 2014

Alkhabeer Capital has announced a new SME Private Equity Strategy that will focus on Saudi Arabia and the UAE.

Ahmed S. Ghouth, Alkhabeer Capital's Deputy CEO commented: "The SME sector is a vibrant growth component of our region's economy and one which we are keen to support and invest in. Across the GCC, governments are focused on developing diversified economies that are non-oil dependent and SMEs will play a prime role in this ambitious strategy."

According to the Organisation for Economic Cooperation and Development (OECD), SMEs contribute over 55 per cent of the Gross Domestic Product (GDP) and over 65 per cent of total employment in high-income countries. Such trends, here in the region, are driven by the ability of successful SMEs to grow quicker in terms of recruitment, expansion and revenues as opposed to more established and mature businesses.

The strategy intends to target the opportunities in high growth Shari'ah compliant businesses. This segment of the region's economy has faced a number of challenges to date which has restricted growth, namely, the inability to access capital from banking institutions, in addition to wider issues, such as poor corporate governance and lack of skilled human resources.

Alkhabeer's investment strategy will be to acquire majority stake focusing in Saudi Arabia and the UAE based SME's where Alkhabeer's private equity team intends to work closely with the management of each portfolio investment and introduce operational efficiencies across each business while also investing in the infrastructure required to support wider expansion and growth strategies.

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Source: CPI Financial

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