UAE leads in M&A market deals

The UAE, Saudi Arabia and Egypt were the top three markets in terms of deal activity in the first half of 2016, according to EY. Despite sluggish macroeconomic situation at the beginning of 2016, overall deal activity in the first half was largely consistent with the same period last year, the global consultancy said in an emailed statement yesterday.

Announced deal value in the Middle East and North Africa (Mena) region decreased by 10 per cent to $19.7 billion in the first half of this year, compared to $21.9 billion in the same period last year.

Technology [sector], with deals valued at $4.4 billion, real estate with deals at $4.2 billion and consumer products at $3.7 billion were the top three sectors.

In line with the trend noticed in the first half of 2015, acquisition capital allocation to outbound transactions in first half of 2016 was at 52 per cent of total deal value.

Domestic deals

Domestic M & As had a positive performance in the first half of 2016, recording an increase in value of 67 per cent compared to the same period last year. During this period, consumer products, industrial products, real estate, banking and capital markets witnessed significant deal activity.

“Improving business sentiment and investor confidence is expected to see an uptick in domestic M&A activity during H2 2016 especially in consumption led sectors in key markets such as Saudi Arabia and the UAE,” said Anil Menon, EY’s Mena M&A and Equity Capital Markets Leader.