Millennials are expected to ramp up their investments in private markets over the coming years — and the Middle East is shaping up to be one of the biggest players in this shift, according to Barclays Private Bank’s Private Markets Annual Report. The report shows that 79% of wealthy investors plan to increase their allocations in private markets, with Millennials leading the charge. The generational transfer of wealth — estimated at USD 80 tn globally by 2048 — is already changing how capital is invested. Younger, more tech-savvy investors are looking for flexibility, transparency, and access to sectors that offer long-term growth and social impact.

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The Middle East’s influence is growing: The Middle East and Asia are now among the fastest-growing regions for private market investments, thanks to rising entrepreneurial wealth and strong liquidity. In these regions, private investors already dedicate about a third of their portfolios to private markets.

Barclays’ survey of over 550 investors found that 91% see private markets as key to long-term capital growth and 89% for diversification. Nearly half of those who have not yet invested say they plan to start soon, signaling a growing appetite for alternative assets.

Private equity and real estate remain the most popular asset classes, with 75% investing in real estate and 73% in private equity. However, other areas like private debt, infrastructure, and secondary transactions are gaining traction as investors look to move beyond traditional funds.

The fundraising landscape is shifting: More than half of general partners (GPs) say fundraising has become more difficult due to tighter liquidity and increased selectivity among investors. Despite that, fund distributions have remained steady, and investor appetite for experienced managers continues to grow.

Access and education remain key barriers: Liquidity, high entry requirements, and complex structures continue to discourage new investors. Younger investors — especially Millennials — say access is one of their biggest challenges, while Baby Boomers cite lack of understanding. Around 70% of respondents rely on advisers for guidance, underlining the need for more education and transparency.

MARKETS THIS MORNING-

Asian markets are in the green in early trading this morning, with the Hang Seng leading gains (up 1.3%) and the Kospi, Nikkei, and Shanghai Composite trailing behind.

TASI

11,270

+0.2% (YTD: -6.4%)

MSCI Tadawul 30

1,470

+0.4% (YTD: -2.6%)

NomuC

24,094

-1.1% (YTD: -23.5%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

4.5% repo

4.0% reverse repo

EGX30

40,261

-0.4% (YTD: +35.4%)

ADX

10,034

+0.1% (YTD: +6.5%)

DFM

6,072

+1.1% (YTD: +17.7%)

S&P 500

6,847

+0.2% (YTD: +16.4%)

FTSE 100

9,900

+1.2% (YTD: +21.1%)

Euro Stoxx 50

5,726

+1.1% (YTD: +17.0%)

Brent crude

USD 65.16

+1.7%

Natural gas (Nymex)

USD 4.53

-0.9%

Gold

USD 4,143

+0.7%

BTC

USD 103,080

-2.8% (YTD: +10.1%)

Sukuk/bond market index

915.78

+0.3% (YTD: +1.5%)

S&P MENA Bond & Sukuk

151.78

-0.1% (YTD: +8.5%)

VIX (Fear gauge)

17.28

-1.8% (YTD: -0.4%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.2% yesterday on turnover of SAR 4.2 bn. The index is down 6.4% YTD.

In the green: Saudi Re (+10.0%), Almawarid (+5.9%) and SMC Healthcare (+5.2%).

In the red: Al Khaleej TRNG (-6.5%), Saic (-6.1%) and Sidc (-4.8%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.1% yesterday on turnover of SAR 40.9 mn. The index is down 23.5% YTD.

In the green: Mulkia (+17.8%), Mayar (+7.2%) and Naas Petrol (+7.1%).

In the red: Alfakhera (-11.2%), Ghida Alsultan (-9.4%) and Multi Business (-7.7%).

CORPORATE ACTIONS-

Saudi Lime Industries’ board agreed to distribute SAR 4.6 mn in dividends for 1H 2025 at SAR 0.2 apiece, the company said in a Tadawul disclosure yesterday. The distribution date is set for Sunday, 21 December.

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