الحياري الإقتصادي اقتصاد سهل يفهمه الجميع
The year 2025 has presented a complex picture for global markets in its first 111 days. A sense of lackluster performance hangs in the air, particularly when we examine the major indices. The bellwether US S&P 500, for instance, has seen a significant downturn of nearly -11% in this short period. Looking broader, a mere handful of global indices have managed to achieve gains exceeding 5%, with a noticeable contingent languishing in negative territory, some dipping below a concerning -10% return. Even the typically volatile energy sector hasn’t offered refuge, with both oil and natural gas posting sub-10% declines year-to-date.
However, amidst this sea of muted returns, glimmers of resilience shine through in the realm of precious metals. Silver, copper, and gold have bucked the overarching trend, delivering impressive year-to-date returns of 13%, 19%, and a striking 28% respectively. This divergence begs the question: what underlying forces are shaping this market landscape?
Initially, the Middle East and North Africa (MENA) stock markets seemed poised for a promising year. The momentum from 2024’s top three IPOs – Talabat Holdings, OQ Exploration and Production, and Lulu Retail – which collectively raised a substantial $5.774 billion, painted an optimistic picture. Yet, the subsequent performance of these very IPOs, now trading in negative territory, serves as a stark reminder of the historical correlation between overvalued initial public offerings and market peaks. The heightened volatility observed in global markets throughout 2025 further casts a shadow over the prospects of traditional stock market growth.
The fundamental strength of stock markets rests on the bedrock of predictable corporate profitability. In times of market turbulence, when companies face uncertainty in forecasting their earnings, investor confidence in these paper assets can swiftly erode. The underperformance of the energy sector, a key indicator of global economic activity, reinforces the prevailing view of potentially tepid global growth.
Historically, environments characterized by a lack of trust in paper assets often trigger a flight to tangible, “hard” assets. Precious metals, real estate, land, and other such assets tend to become the preferred destinations for investors seeking stability. So, where does this leave the potential for growth?
This is where the realm of Private Equity (PE) steps into the spotlight. Volatile markets can present unique economic opportunities for PE firms with a discerning eye. Strategic investments, made astutely, have the potential to flourish discreetly in 2025 and beyond. Interestingly, the MENA region witnessed significant capital raising in 2024, with MNT-Halan, Salla, and Eyewa securing a combined $387.5 million across Egypt, Saudi Arabia, and the UAE, respectively. Notably, the Fintech sector appears to be generating considerable excitement within MENA, with companies like Chime, Stripe, and Navan attracting a staggering $6.05 billion in total funding.
These positive indicators contribute to a cautiously optimistic outlook for private equity within the MENA region. This sentiment is further bolstered by the anticipated easing of regulatory pressures and the emergence of a pro-investment climate across various sectors. As macroeconomic uncertainties persist, well-positioned private equity firms may find timely investment opportunities, paving the way for strong business upcycles in strategic areas. These investments are expected to yield even more compelling returns when coupled with a well-structured capital framework.
Given the prevailing signals of a potential decrease in global interest rates throughout 2025, incorporating private debt into the capital structure could present attractive opportunities. A judicious blend of private equity and private debt may even amplify investment returns if allocated strategically.
At Al Hiary Al-Iktissadi, we offer expert financial consulting services to help you navigate these complex market dynamics.
We invite you to connect with us if:
You possess a minimum of $200,000 in investable assets and seek to capitalize on the opportunities presented by the current economic climate. We can provide tailored guidance, encompassing comprehensive risk-return analysis and in-depth accounting and taxation perspectives to identify the most suitable investment avenues.
You have a company valued at over $200,000 and are considering a sale. We can assist you in reviewing its valuation and cost of capital, facilitating connections with investors offering a risk-assessed equity-debt capital structure.
Our team brings over 20 years of combined experience in valuation, investment, accounting, and taxation. We are pleased to offer a complimentary initial meeting, whether in person here in Jordan or remotely, to understand your investment objectives and explore how our expertise can add value.
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