Private equity firms across the Mena region are preparing for a major shift in how they build value in their investments, with more than half of all portfolios expected to integrate artificial intelligence-driven value creation by the end of 2026, according to new data from Ento Capital.
In simple terms, this marks a turning point where AI moves from being an experimental or “nice-to-have” tool to becoming a core part of how businesses are run, improved and scaled.
For private equity firms, which buy, grow and eventually sell companies, AI is increasingly seen as a practical way to improve productivity, cut costs and strengthen profits—especially at a time when cheap debt is no longer easily available.
Ento Capital said its forecast is based on proprietary data, investor discussions and direct engagement with private equity managers and portfolio company executives across the region. The findings suggest that AI is no longer confined to pilot projects or isolated use cases, but is being embedded into everyday operations such as supply-chain management, pricing, customer service, forecasting and risk management.
This shift is also reflected in global research. EY’s 2026 Private Equity Trends report shows that AI is becoming a baseline operational capability, particularly in mid-market companies where implementation is faster and less complex. Once a technology reaches this “baseline” stage, adoption typically crosses the 40 per cent mark, reinforcing Ento Capital’s expectation that usage in Mena will exceed 50 per cent by 2026.
Morgan Stanley’s 2026 Private Equity Outlook echoes this view, noting that AI-led operational improvements are fast becoming a key differentiator between outperforming and underperforming portfolios. Most private equity firms globally now plan to roll out AI tools across their holdings over the next two to three years.
What makes Mena stand out is the region’s readiness. Governments have rolled out national AI strategies, digital infrastructure is already advanced, and many portfolio companies sit in a flexible mid-market segment that can adopt new technology quickly.
“AI-driven value creation is rapidly becoming an expectation rather than a competitive advantage,” said Hayssam El Masri, senior executive officer at Ento Capital. “When you combine strong digital infrastructure with national AI strategies and an agile business ecosystem, adoption accelerates naturally.”
Industry experts say AI adoption is only the first step. As private equity firms deepen their capabilities, they are likely to unlock new efficiencies, design smarter deal structures and create more resilient businesses—reshaping the Mena investment landscape in the process.
