Over 50% of MENA’s private equity portfolios set to integrate AI-driven value creation by end of 2026, new data shows
AI shifting from a pilot-phase technology to a core operational lever across portfolio companies
More than 50% of private equity portfolios in the MENA region are set to integrate AI-driven value creation initiatives by the end of 2026, as AI shifts from a pilot-phase technology to a core operational lever across portfolio companies, according to new data released by Ento Capital, an investment banking firm regulated by the Dubai Financial Services Authority (DFSA) with a track record of $4.6 billion in assets under management.
The trend reflects a growing focus on productivity, margin enhancement, and operational resilience as private equity firms recalibrate value-creation strategies in a lower-leverage environment.
The forecast is derived from Ento Capital’s proprietary data, investor insights, market trend analysis, and observational intelligence across regional deal activity, combined with structured engagement with general partners, limited partners, and portfolio management teams.
EY’s 2026 Private Equity Trends highlights an identical trajectory. Their numbers and analysis underscore that AI is moving from optional experimentation to a baseline operational capability in private equity portfolios, particularly in mid-market companies where AI adoption is easier to implement. When a capability becomes a ‘baseline’, adoption typically exceeds minority levels (i.e., >40%).
Similarly, Morgan Stanley’s 2026 Private Equity Outlook emphasizes that AI-driven operational improvements are becoming a key differentiator for performance, with most firms planning portfolio-wide adoption over the next 24–36 months.
“Combining these insights with MENA-specific conditions, such as national AI strategies, digitally advanced infrastructure, and a mid-market ecosystem capable of rapid technology adoption, we conservatively estimate that over half of MENA private equity portfolios are likely to integrate AI-driven value creation by end-2026,” said Hayssam El Masri, Senior Executive Officer at Ento Capital.
He added: “In the MENA region, the convergence of national AI strategies, strong digital infrastructure, and an agile mid-market ecosystem is accelerating adoption. AI-driven value creation is quickly becoming an expectation rather than an advantage.”
Looking ahead, the AI adoption in private equity would be the first step in a wider technological transformation shaping MENA’s investment landscape. As firms build expertise and expand their AI capabilities, they stand to discover new operational efficiencies, explore innovative deal structures, and drive deeper value creation.
