Face time with Arif Naqvi

(CNN) -- Arif Naqvi is CEO of Abraaj Capital, a Dubai-based investment firm specializing in private equity investments in the Middle East, North Africa and South Asia region.

With over $2 billion worth of assets currently under management, Abraaj Capital's landmark deals include the leveraged buyout of the Inchcape Group's Middle East businesses and Aramex.

Naqvi was designated New Asian Leader by the World Economic Forum from 2003 - 2004 and he is also a board member of the Pakistan Human Development Fund.

He is originally from Pakistan, graduated from the London School of Economics and in 2006, he was awarded the Sitari-e-Imtiaz, the highest civilian honor in Pakistan.

Naqvi joins John Defterios on MME to discuss the investment opportunities and risks throughout the region as a result of rising oil prices and the growing wealth of sovereign funds.

Arif Naqvi: The government does not play as heavy a hand as it did in the past. Governments are starting to realize that they need to be in the business of governance, not in the business of management.

The public/private sector model, in terms of investment activity, is evolving at a very rapid pace in the region. And, they are beginning to realize that the private sector needs to be a partner to that.

John Defterios: You've taken a very simple approach: health care, education, even fertilizer. Basic building blocks. Where do you want Abraaj to be playing in this field?

AN: In my opinion, the basic building blocks are still not yet in place. And my colleagues are constantly scouring the region looking for ways to add on. People like us have enormous investment appetite.

JD: I see Goldman's and Citigroup, Morgan Stanley redeploying their people into Europe and the Middle East. How does it change your business for the next five years?

AN: I think the presence of so many players will drive up the price of assets. And at that time, we have to look to ensure that we continue to delve deep down into our local competency. And on the talent side, we have to make sure we continue to provide a conducive environment to our colleagues that cannot be matched.

JD: I find it fascinating that the inherent risk that is there because of Iraq, Iran, Israel and Palestine, doesn't spill into other parts of the region. Is there a different view on how to assess risk?

AN: I think we've always suffered in the past because of this danger. People look at the region as a whole and color it with one brush. We have the ability to arbitrage that risk as regional players.

So, for example, during the first Gulf War, we saw a big boom in the Gulf States that followed. Investors in the Middle East have a clear ability to arbitrage that risk away from themselves. You've got this enormous construction boom and you have enormous infrastructure activity. You have Iraq, Palestine, and the consequential impact of being extremely careful and looking at investment activity there.

JD: What is the greatest risk facing the region?

AN: I think the biggest risk today is political. And it comes from outside the region, not inside the region. Once we have the ability to see through some of the issues that have plagued our region over the last 30, 40 years, and everyone works together, I think there will be no further bars on its progress. E-mail to a friend