![]() ![]() According to the CEO of one of the largest family-run industrial groups in Saudi Arabia, >We see great fund managers when we invest as LPs in the U.S. 2 This investment environment increases the opportunity cost for investors, making local VC funds a less attractive asset.All three family offices I interviewed also raised the concern that there are few credible VC investors in the region. Venture returns are unproven in MENA, while returns from more traditionally non-liquid assets in the region, such as real estate, are high-yielding in some cases 3x in two years. ![]() None of the potential LPs whom I interviewed view venture capital as a viable asset class in the region (even though four of the five are limited partners in U.S. Interviewees revealed three main challenges to venture capital in the Middle East and North Africa. In this article, I use the interview data to explore how to accelerate the creation of new venture capital funds in the Middle East, so that entrepreneurship can achieve accelerated job creation and economic growth. Having had the good fortune of being an entrepreneur and an investor across three continents before joining Endeavor, I have no doubt of the power that entrepreneurs and investors have when their interests are aligned.
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