Could it be that there’s still an appetite for hiring within the Middle Eastern private equity industry after all? After a few months suggesting that it’s beginning to look less than rosy, a bullish sentiment is starting to emerge again.

Private equity fund managers in the Middle East raised a record $6.8bn last year, which is a 10% upswing on 2007, according to new research by the Gulf Venture Capital Association (GVCA).

It notes that cash-rich local players have around $11bn in capital under management yet to be deployed (through a combination of increased fund raising and a dearth of new deals), which gives them a strategic advantage in the current environment where companies are struggling to secure financing.

Last week, Abraaj Capital said it has plans to expand its senior management team, and now the Abu-Dhabi Investment Company (ADIC) has hired Samir Assaad Samaan to head up its private equity operations as it prepares for a surge of buy-out deals.

ADIC’s chief exec, Nazem Fawwaz Al Kudsi, says now’s the time to take advantage of the arid corporate lending environment: “Our nimble private equity fund should continue to thrive as a valuable capital source for growing companies.”

Al Kudsi said the UAE and Saudi still offer the most potential opportunities. ADIC will be targeting healthcare, education, telecoms, consumer goods, and logistics and distribution.

Bill Allum, managing director of headhunters Napier Scott, says that although a lot of firms in the Gulf are keen to add staff, most are still reluctant to go full steam ahead.

“The majority of recruitment is coming through specialist Middle East-based firms, but some private equity firms based in London are looking to hire people to take advantage of the opportunities they see in the region,” he says.

A spokesperson for Abraaj Capital pointed to a slow down in the number of deals in the last quarter of 2008 and early 2009, which has led to a more cautious approach.

“Certainly, the view is 2009 and 2010 will both be good vintage years. There is still an element of caution – people don’t necessarily want to catch the falling knife. Perhaps valuations will fall even lower,” he said.