Baker McKenzie and SS&C Intralinks are pleased to announce the release of the MENA M&A Outlook 2023.
The report was researched and produced by Mergermarket and draws out the insights and thoughts of 200 of some of the most active dealmakers across the MENA region to get a sense of what is driving the M&A market now, what is motivating them to invest in MENA and what they expect from this market in a post-pandemic world adjusting to inflationary pressures and tightening financial conditions.
The MENA region continues to have much to offer corporates and financial investors in pursuit of M&A and is increasingly opening its doors to foreign direct investment (FDI) and growing more diverse in the number and types of deal opportunities that are available.
In the first three quarters of 2022 we witnessed M&A activity in the MENA region outstrip all previous annual records. Q1 2022 was the highest quarter on Mergermarket record (since 2006) for MENA M&A volume at 147 deals, pushing the first nine months of the year to 370 transactions. This is well above any full year on record, notwithstanding last year’s breakout performance. The total deal value reached USD 86 billion over the period, putting 2022 on track to be one of the three highest-value years on record.
Key findings from the report include:
- 66% of respondents based in MENA say that they expect the level of ESG-related regulatory scrutiny within MENA to increase in the next three years, while 73% of those based outside of MENA feel the same.
- The UAE and Saudi Arabia are highlighted by 77% and 76% of respondents respectively for being MENA countries they expect will most likely see some of the fastest growth in M&A deal activity over 2023.
- 63% of those based in MENA expect oil and gas to see some of the fastest growth in M&A activity in MENA over 2023. When asked about where they plan to invest, however, TMT, industrials and chemicals, and consumer and retail were the top sectors.
- Joint ventures are seen as one of the most attractive types of investment for 73% of corporate MENA buyers and 60% of PE MENA buyers.
Access a copy of the report for further insights on projections and key drivers in the market.
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