UAE is on the top of makrets to make mergers and acquisition deals. Despite the economic slowdown at the beginning of 2016, overall deal activity in the first half of 2016 was largely consistent with the same period last year.
The UAE, Saudi Arabia and Egypt were the top three markets in terms of deal activity in the first half of 2016 announced deal value in the Middle East and North Africa (Mena) region decreased by 10 per cent to $19.7bn in the first half of this year, compared to $21.9bn in the same period last year.
Technology sector, with deals valued at $4.4bn, real estate deals at $4.2bn and consumer products at $3.7bn, were the top three sectors in deal values in the first half of the year.
“With modest recovery in the macroeconomic situation, the outlook for mergers and acquisitions in the second half 2016 remains cautiously optimistic, and the deal activity on a full year basis in 2016 is expected to be the same as the performance in 2015,” Phil Gandier, Mena Transaction Advisory Services Leader, EY, said in a statement. In the first half of 2016, mergers and acquisitions have hit high, either in regard to deals’ value or number. Significant number of technology and real estate deals were made. 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.
Europe dominance
Europe and the US continued to be the top two destinations for outbound transactions.
Domestic mergers and acquisitions had a positive performance in the first half of 2016, recording an increase in value of 67 per cent in the first half of 2016 compared to the same period last year. During this period, consumer products, industrial products, real estate, banking & capital markets witnessed significant deal activity.
