One of the greatest opportunities for businesses seeking growth is the emerging culture of venture capital and capital markets as means for securing financing.
According to a DinarStandard analysis, the top 10 fastest growing stock markets of the Muslim World averaged market capitalization growth of 99.87% between 2003-2004. Comparatively, the top 10 global stock markets averaged growth of 19.79%. Many major corporations such as Kingdom Holding of Saudi Arabia and Egypt’s Orascom Holdings have accessed the public markets for growth capital.
Similarly, the growth of a venture capital driven entrepreneurial environment is evident by more and more venture funds being established as well as the establishment of venture parks such as Dubai Media/Internet City, Muscat Knowledge City, and Malaysia’s Multimedia Super Corridor. Also, the recent establishment of the Gulf Venture Capital Association points to an increase in venture capital activity. Private Equity Week projects that funds from the Gulf region will raise at least $17 billion by the end of 2006 which could pass the total of all new PE funds being raised in Asia (inclusive of China and India.)
All in all, businesses have a tremendous opportunity to position themselves to access these sources of financing and its associated impact to an organization’s entrepreneurial spirit.
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