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Gulf States Spearhead $42.5 Billion in Mergers & Acquisitions

GCC countries lead merger and acquisition deals (SPA)
GCC countries lead merger and acquisition deals (SPA)
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Gulf States Spearhead $42.5 Billion in Mergers & Acquisitions

GCC countries lead merger and acquisition deals (SPA)
GCC countries lead merger and acquisition deals (SPA)

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.

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Oil Prices Set to End Week over 3% Lower as Supply Risks Ease

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
TT
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Oil Prices Set to End Week over 3% Lower as Supply Risks Ease

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo

Oil prices fell on Friday, heading for a weekly drop of more than 3%, as concerns over supply risks from the Israel-Hezbollah conflict eased, alleviating earlier disruption fears.
Brent crude futures fell 55 cents, or 0.8%, to $72.73 a barrel by 0758 GMT. US West Texas Intermediate crude futures were at $69.52, down 20 cents, or 0.3%, compared with Wednesday's closing price.
On a weekly basis, Brent futures were down 3.3% and the U.S. WTI benchmark was trading 3.8% lower.
Israel and Lebanese armed group Hezbollah traded accusations on Thursday over alleged violations of their ceasefire that came into effect the day before. The deal had at first appeared to alleviate the potential for supply disruption from a broader conflict that had led to a risk premium for oil.
Oil supplies from the Middle East, though, have been largely unaffected during Israel's parallel conflicts with Hezbollah in Lebanon and Hamas in Gaza.
OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a scheduling conflict. OPEC+ is expected to further extend its production cuts at the meeting.
BMI, a unit of Fitch Solutions, downgraded its Brent price forecast on Friday to $76/bbl in 2025 from $78/bbl previously, citing a "bearish fundamental outlook, ongoing weakness in oil market sentiment and the downside pressure on prices we expect to accrue under Trump."
"Although we expect the OPEC+ group will opt to roll-over the existing cuts into the new year, this will not be sufficient to fully erase the production glut we forecast for next year," BMI analysts said in a note.
Also on Thursday, Russia struck Ukrainian energy facilities for the second time this month. ANZ analysts said the attack risked retaliation that could affect Russian oil supply.
Iran told a UN nuclear watchdog it would install more than 6,000 additional uranium-enriching centrifuges at its enrichment plants, a confidential report by the watchdog said on Thursday.
Analysts at Goldman Sachs have said Iranian supply could drop by as much as 1 million barrels per day in the first half of next year if Western powers tighten sanctions enforcement on its crude oil output.