The intelligence premium
ME PoV Issue 50
How AI is rewriting private equity value creation in the Gulf
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Across the GCC, companies are transitioning from a commercial focus on returns (such as multiple expansion and financial engineering) towards operational and digital transformation.
MENA mergers and acquisitions (M&A) reached a record US$193 billion of announced value in 2025, led by sovereign investors such as Saudi Arabia's Public Investment Fund (PIF), Mubadala, and Abu Dhabi Investment Authority (ADIA). Yet for many regional firms, realizing the full value of these deals can feel elusive.
The practical question for a general partner is not whether AI matters, but where and how it can be applied throughout the value-creation process.
By the numbers
of more than 3,000 senior executives said they plan to increase overall AI spending in the year ahead
of senior leaders in the UAE report meaningful productivity gains from AI
expect agentic AI to deliver measurable returns within two years
From financial engineering to operational alpha
Operational improvements are key levers of portfolio value creation and, increasingly, leverage Artificial Intelligence (AI) and digital transformation to drive growth, improve efficiency, strengthen differentiation, and manage risk.
Identify, evaluate, quantify: AI across the value creation lifecycle
Used well, AI can span the entire lifecycle. From identifying opportunities to demonstrating value at exit. Underpinned by centralized, secure, and verified corporate date.
Five levers, made measurable
Deloitte's analysis of value creation work across sectors points to five practical, AI-enabled levers:
- Building AI-ready talent
- Growing revenue through predictive analytics
- Expanding margin through automation
- Differentiating through data and new business models
- Protecting the asset through cyber and risk management.
Each can be instrumented and measured.
The Gulf is moving fast
What distinguishes the region is the speed at which capital, policy, and technology are converging, and the willingness of its largest investors to transform their own operating models.
What general partners should do now
The strategic implication is not to spend the most on AI, but to build the model that turns it into value. Four moves stand out. Build the data foundation first, since governed, accessible data is the binding constraint on everything that follows. Own the intelligence layer by codifying the proprietary decision logic of each portfolio company into governed models that the business controls. Redesign operating models for autonomy rather than retrofitting AI agents onto human-shaped workflows. And deploy from proven blueprints, scaling validated use cases across the portfolio instead of financing endless pilots.
By Zaid Selman, Director, Value Creation Services, Deloitte Middle East
An asset's capacity to support intelligent operations, including data, governance, and workflows, is increasingly becoming a determinant of its valuation.
Zaid Selman | Director | Value Creation Services
Read the full issue
This article is featured in ME PoV Issue 50. Read the full issue for more perspectives on what's shaping the Middle East.
