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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)
TT
TT

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 Rises on Upbeat China Data, Shaky Israel-Lebanon Ceasefire

FILE - Pump jacks work in a field near Lovington, N.M., April 24, 2015. (AP Photo/Charlie Riedel, File)
FILE - Pump jacks work in a field near Lovington, N.M., April 24, 2015. (AP Photo/Charlie Riedel, File)
TT
TT

Oil Rises on Upbeat China Data, Shaky Israel-Lebanon Ceasefire

FILE - Pump jacks work in a field near Lovington, N.M., April 24, 2015. (AP Photo/Charlie Riedel, File)
FILE - Pump jacks work in a field near Lovington, N.M., April 24, 2015. (AP Photo/Charlie Riedel, File)

Oil prices rose on Monday, supported by strong factory activity in China, the world's second-largest oil consumer, and heightened tensions in the Middle East as Israel resumed attacks on Lebanon despite a ceasefire agreement.
Brent crude futures climbed 57 cents, or 0.79%, to $72.41 a barrel by 0700 GMT while US West Texas Intermediate crude was at $68.58 a barrel, up 58 cents, or 0.85%.
"Oil prices have managed to stabilize into the new week, with the continued expansion in China's manufacturing activities reflecting some degree of policy success from recent stimulus efforts," said Yeap Jun Rong, market strategist at IG.
This offered slight relief that oil demand from China may hold for now, he added.
A private-sector survey showed China's factory activity expanded at the fastest pace in five months in November, boosting Chinese firms' optimism just as US President-elect Donald Trump ramps up his trade threats.
Still, traders are eyeing developments in Syria, weighing if they could widen tension across the Middle East, Yeap said.
A truce between Israel and Lebanon took effect on Wednesday, but each side accused the other of breaching the ceasefire.
In a statement, the Lebanese health ministry said several people were wounded in two Israeli strikes in south Lebanon. Air strikes also intensified in Syria, as President Bashar al-Assad vowed to crush insurgents who had swept into the city of Aleppo.
Last week, both benchmarks suffered a weekly decline of more than 3%, on easing concerns over supply risks from the Israel-Hezbollah conflict and forecasts of surplus supply in 2025, even as OPEC+ is expected to extend output cuts.
The Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, postponed its meeting to Dec. 5, sources told Reuters last week.
This week's meeting will decide policy for the early months of 2025.
Since the group's production hike had been widely expected, the market's focus may be on the extent of delay to sway crude prices, said IG's Yeap.
"An indefinite delay may be the best case for oil prices, given that earlier rounds of delays by a month or so have failed to drive higher oil prices in line with what OPEC+ intended."
Brent is expected to average $74.53 per barrel in 2025 as economic weakness in China clouds the demand picture and ample global supplies outweigh support from an expected delay to a planned OPEC+ output hike, a Reuters monthly oil price poll showed on Friday.
That is the seventh straight downward revision in the 2025 consensus for the global benchmark, which has averaged $80 per barrel so far in 2024.