(MENAFN- Khaleej Times)

The Gulf was built by merchant families who crossed seas and deserts with little more than conviction, trust, and courage. They measured success not by quarterly profits but by legacy; by what they built, employed, and passed on.

That spirit is the true DNA of this region's capitalism. But in modern times, we have seen a shift to short-termism, particularly in private equity. There is an increasing focus on financial engineering and fast-paced dealmaking rather than long-term value and knowledge creation, with private equity firms acting as brokers rather than partners.

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As the UAE and its neighbours lead a new era of diversification, it's time to bring that human energy back into private equity; to blend heritage with innovation, patience with progress, and capital with conscience. The future belongs to those who have a vested interest in their investments and act as true partners in growth, not speculators chasing the next exit.

From merchants to makers

Private equity firms in the Gulf must evolve from brokers of deals to builders of value. The region doesn't need faster exits; it needs firms that endure, scale, and strengthen industries that matter - healthcare, AI, clean energy, logistics, and education.

Real investing is not about flipping companies; it's about forging institutions. It's about founders and funds sitting on the same side of the table, sharing vision, risk, and responsibility. When alignment replaces opportunism, every transaction becomes a nation-building act.

This long-term approach sits naturally within the UAE's own economic philosophy. The country's leadership has consistently shown a commitment to building sustainable growth - one that extends beyond short-term financial metrics.

Government and investors: Co-architects of the future

The UAE's leadership has already proven that public vision can mobilize private confidence. But now, we must move from government patronage to true partnership.

Public-private partnerships should no longer be viewed as exceptions or policy experiments, they must become the backbone of development. Governments can create the frameworks, but investors must deliver the execution muscle: funding, governance, innovation, and talent.

Every fund operating here should see itself as a strategic ally of the state, accelerating national priorities while ensuring sustainable commercial returns. This is not charity: it's enlightened capitalism.

Governments can play their part by continuing to ensure predictability, transparency, and efficiency in regulation. Clear frameworks, consistent policy, and open channels for dialogue give investors the confidence to deploy long-term capital.

Meanwhile, the private sector must show that it can accelerate execution, introduce global best practice, and innovate in ways that complement public objectives. Mubadala and ADQ, for example, have shown how aligned capital, guided by long-term national priorities, can transform industries from semiconductors to renewables. The private equity community has a vital role to play alongside these champions, bridging ambition and execution.

The next frontier: Human capital

The Gulf's next competitive edge won't come from its financial reserves or infrastructure. It will come from people, from the new generation of scientists, entrepreneurs, and investors who dare to think globally but build locally.

Private equity must invest not only in companies, but in capability. That means mentoring the young generation, fostering skills, and creating environments where ambition meets purpose. The greatest return on investment isn't always monetary; it's the confidence of a generation empowered to lead.

A new Gulf capitalism

The era of private equity as a“broker business” is over and the world doesn't need another copy of Wall Street. It needs a model born of this region's values; a capitalism that blends vision and virtue, heritage and innovation, wealth and responsibility.

This is the next chapter: capital that stays, builds, and believes. Private equity that measures success by endurance, not just exits. Partnerships that bridge government and markets, East and West, tradition and technology.

The Gulf has always been a place of builders, not speculators. Today, the question is no longer how quickly we exit but how deeply we build.

The writer is founder and CEO of VantageBridge Partners

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