The UAE has become the Middle East’s leading private capital market as investors increasingly direct funds toward opportunities in the region, according to a new report from BlackRock’s Aladdin.
The report describes a broader shift from the Middle East serving mainly as a source of capital for global private markets to becoming a destination for investment. Economic transformation programs, infrastructure development and more sophisticated institutions are supporting the change.
Middle Eastern sovereign wealth funds tracked by Preqin allocate 43% of their exposure to private capital, compared with 35% among sovereign funds elsewhere. Investor interest in private equity has also grown, with 83% of regional limited partners either positive about or considering mandates in 2026, up from 70% in 2019.
BlackRock Investment Institute research cited in the report estimates that GCC countries will invest around $2.1 trillion by 2030, with spending aimed at strengthening resilience across trade, shipping and energy markets. Infrastructure and digital infrastructure, including data centers and artificial intelligence-related assets, are emerging as key areas of focus.
Family offices accounted for nearly half of active Middle East-based private capital investors in 2026. Private equity was their largest area of future interest at 27%, followed by real estate at 19% and private credit at 16%.
The region’s venture capital market also remained resilient, with annual deal value averaging $2.4 billion from 2021 to 2025, according to the report.
Source: Fast Company Middle East
