The Middle East and North Africa region has recently witnessed a remarkable boom in mergers and acquisitions (M&A) deals, as a total of 318 mergers and acquisitions deals were recorded in the region, with a value of $43.8 billion.
This was shown by the recent edition of the first half report issued by Ernst Young on mergers and acquisitions in the Middle East, which indicated that the majority of these deals, specifically 254 deals worth $42.5 billion, took place within the GCC region.
On the other hand, compared to the first half of 2022, a decrease of 14% was recorded in the number of deals during this period, compared to a slight increase in their value by 0.4 %.
Ernst Young indicates that the merger and acquisition market in the first half of the year maintained its alignment with the trends observed in the latter half of 2022, despite the prevailing economic challenges, including high-interest rates, fears of a possible recession, and the inflationary environment, and geopolitical tensions, mergers and acquisitions continued. However, the report notes that dealmakers have shown a cautious approach, given the uncertain market conditions.
According to the report, sovereign wealth funds such as the Abu Dhabi Investment Authority and (Mubadala) from the Emirates, along with the Saudi Public Investment Fund, have taken the lead in driving deal activity within the region to enhance the country’s economic strategies.
These sovereign funds have played a crucial role in shaping the deal-making landscape, strategically aligning their investments with the economic goals of their countries.
The report stated that the top 10 mergers and acquisitions were concentrated in the UAE and Saudi Arabia. In March 2023, the American asset management company “Apollo Global Management” and “Asia” announced their plan to acquire the UAE-based “Univar Solutions” for $ 8.2 billion.
In the same month, Blackstone signed a definitive agreement with the Abu Dhabi Investment Authority to acquire the Emirati holding company, Cvent, for $4.7 billion.
