The Ernst & Young (EY) report on mergers and acquisitions in the Middle East and North Africa region revealed unprecedented activity during the year 2022, with 754 deals recorded during the year, exceeding the traditional numbers that were recorded historically between 500 and 600 deals, to achieve growth in the number of deals by 100%. 13%, compared to 2021.
The report indicated that the UAE maintained its leadership in the lists of the most attractive countries and the most executing deals in the Middle East and North Africa region, followed by Saudi Arabia in both lists, while Egypt and the Sultanate of Oman occupied a place on the list of the five countries most attractive and executing merger and acquisition deals, while institutions dominated. The US accounted for the largest number of inbound deals in the region, with 35 deals recorded, 19 of which were in the technology sector.
The biggest deals
According to the report, the UAE recorded three of the largest mergers and acquisitions deals in the region, led by the Canadian corporation, Case de Dipo et Plasman de Quebec, which acquired 22% of the ownership of DP World in both the Jebel Ali Free Zone and the Industrial Park. National, and Jebel Ali Port, for five billion dollars.
In second place, an outgoing deal was represented by the acquisition of 9.8% of the Vodafone Group by the Emirates Telecommunications Corporation and its subsidiary, Atlas 2022 Holdings, for $4.4 billion.
Thirdly, the Abu Dhabi National Oil Company (ADNOC) acquired 24.9% of the Austrian oil and gas company OMV AG from a local sovereign wealth fund of Mubadala for $4.1 billion.
Market improvement
The “Ernst & Young” report stated that the improvement in market conditions, due to the rise in oil prices during the past six years, the legislative reforms that came in favor of business, and the easing of government travel restrictions, led to the strengthening of investor confidence, which led to an increase in the activity of mergers and acquisitions deals in the region. As a whole.
He explained that local deals in the region accounted for 51% of the total volume of mergers and acquisitions deals with 388 deals, while they accounted for 34% of the total value of deals with $28.4 billion.
The report indicated that the outgoing deals ranked first in terms of value, recording $40.1 billion in 201 deals, while the number of incoming deals reached 165 deals, with a total value of $14 billion.
government deals
The region also witnessed 137 transactions involving government-related entities in 2022, which is 78% higher compared to 2021, and the highest number since 2017.
These deals accounted for 49% of the total value of announced deals, with revenues of $40.3 billion.
new peak
Brad Watson, head of deals and strategy for the Middle East and North Africa region at EY, said, “After returning in 2021 once morest the background of the (Covid-19) pandemic receding, the activity of mergers and acquisitions deals in the Middle East during the past year reached a new peak. Which indicates the success of companies in adjusting their strategies for merger and acquisition deals to suit the changing needs in the market.
He added, “In continuation of this strong path, local deals were an important driver of the volume of deals in the region.”
Watson continued, “The number of deals received in the UAE indicates that investors from outside the Middle East and North Africa region are showing great interest in the favorable business environment that the wise Emirati government has been able to establish.”
technology sector
The “Ernst & Young” (EY) report on mergers and acquisitions in the Middle East and North Africa region stated that in terms of sectors, the technology sector accounted for 25% of the total number of deals, reflecting that the Middle East and North Africa region continues to enhance the ease of doing business through Enacting appropriate legislation for industries, and creating a favorable investment environment, in the context of its endeavor to enhance its position as a center for emerging companies in the field of technology.