Over 50 Per Cent Of MENA Private Equity Portfolios To Integrate AI By End Of 2026

The forecast comes from new data released by Ento Capital, an investment banking firm regulated by the Dubai Financial Services Authority, with a track record of $4.6bn in assets under management.

The shift reflects a growing emphasis on productivity gains, margin enhancement and operational resilience, as private equity firms recalibrate value-creation strategies in a lower-leverage environment.

Ento Capital said its outlook is based on proprietary data, investor insights, market trend analysis and observational intelligence across regional deal activity, supported by structured engagement with general partners, limited partners and portfolio management teams.

This trajectory mirrors global findings. EY’s 2026 Private Equity Trends highlights that AI is moving from optional experimentation to a baseline operational capability, particularly within mid-market companies where adoption is easier to implement.

When a capability becomes baseline, adoption typically exceeds minority levels, defined as above 40 per cent.

Private equity trends

Similarly, Morgan Stanley’s 2026 Private Equity Outlook underscores that AI-driven operational improvements are becoming a key performance differentiator, with most firms planning portfolio-wide adoption over the next 24 to 36 months.

Hayssam El Masri, Senior Executive Officer at Ento Capital, said: “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.

 “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, Ento Capital said AI adoption within private equity portfolios is likely to serve as the first step in a broader technological transformation shaping the region’s investment landscape.

As firms deepen expertise and expand AI capabilities, they are expected to unlock new operational efficiencies, explore innovative deal structures and drive deeper value creation across portfolio companies.