The UAE and Saudi Arabia emerged as the top destinations for mergers and acquisitions (M&As) in the Middle East and North Africa (Mena) region during the first nine months of 2024, according to a recent report.

The EY Mena M&A Insights 9M 2024 report revealed that 239 deals were executed in these two countries, totaling $24.5 billion in disclosed value. Both nations also led in terms of deal volume and value, accounting for 52% and 81% of the total, respectively.

The Mena region saw a surge in M&A activity, with 522 deals worth $71.0 billion, marking a 9% increase in volume and a 7% rise in value compared to the same period in 2023. Sovereign wealth funds (SWFs), including the Abu Dhabi Investment Authority (Adia) and Mubadala from the UAE, and the Public Investment Fund (PIF) from Saudi Arabia, played a pivotal role in driving this activity.

Cross-border M&As were significant, contributing 52% of the overall volume and 73% of the value. Meanwhile, domestic M&A value surged by 44% year-on-year to $19.3 billion, largely driven by transactions in the oil & gas, metals & mining, and chemicals sectors.

The US remained the preferred target for Mena investors, with 32 deals totaling $18.3 billion. The US-UAE Business Council has been instrumental in fostering partnerships between US and UAE entities.

Brad Watson, EY Mena strategy and transactions leader, noted that the Mena region's deal activity has improved due to strategic policy shifts and robust capital inflows. The UAE's business-friendly regulations and efficient legislative framework have made it a favored investment destination.

Ten of the region's highest-valued M&As in the first nine months of 2024 were concentrated in the GCC. The largest transaction involved the acquisition of Truist Insurance Holdings for $12.4 billion by Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment.

Insurance and oil & gas sectors were the most attractive to investors, representing 34% of total deal value. Domestic M&A activity saw a 7% increase, with GCC players involved in 81% of the deals.

Saudi Arabia and the UAE dominated the M&A landscape, with Morocco, Bahrain, and Egypt also featuring prominently. Inbound deals to the Mena region rose by 20% in volume and 47% in value compared to 2023.

Outbound deals were the largest contributor to total deal value, with 147 deals amounting to $41.4 billion. The US and China accounted for 70% of the outbound deal value.

Anil Menon, EY Mena Head of M&A and Equity Capital Markets Leader, expects the Mena M&A market to close the year with over 700 deals, nearing the historic high of 750 deals.

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