Robust growth in M&A transactions

Asar Mashkoor, Managing Director at Emirates NBD commented: “The region has always had liquidity. What we are seeing now is that seller expectations of value are reasonable, and buyers are positioning themselves for an improvement in sentiment. At the same time, banks are keen to diversify away from traditional sectors and willing to help finance M&A transactions. We expect this trend to continue in the medium term”

Omar Momany, Partner, Baker McKenzie, commented: “The significant uptick in M&A activity in the Middle East in the first quarter of this year has been largely due to a number of mega mergers and consolidations across key sectors driving economic growth, including financial services, technology and industrials.”

“Despite the volatility of global markets in 2018, strong economic fundamentals, improvement in oil prices, and rising production growth continue to draw investors to the Middle East. With governments such as the UAE and Saudi Arabia taking steps to enhance their foreign direct investment regimes and diversify their economies, we expect a healthy level of M&A activity in the region for the rest of 2019,” he added.

Elaine Green, Editor of Mergermarket Bureaus commented: “We are seeing a surge of interest from private equity in energy, consumer and education opportunities. Infrastructure and renewable deals continue to drive interest. The region increasingly looks to diversify out of an over-reliance on traditional energy sources and as its population becomes more westernised in habits we expect consumer, education and health sectors to see further growth.”

Gamal M. Abouali, Partner, Abu Dhabi, Cleary Gottlieb Steen & Hamilton commented: “While deal volume in Middle Eastern private equity remains subdued, participation of GCC sovereign wealth funds in outbound private equity investments in Europe, North America, and Asia continues to be robust.’

“GCC institutions are increasingly carrying out co-investments and direct investments, as opposed to passive fund stakes, which means the region will help shape private equity activity globally,” he added.