Thus, specialists from the law firm "Ernst & Young" presented a report on deals in mergers and acquisitions in the Middle East and North Africa, indicating an increase in activity in the M&A sector during the first nine months of 2024. This period has proven to be successful, with a total of 522 deals worth $71 billion, reflecting an increase of 9% in volume and 7% in value compared to the previous year.
According to the report, the Emirates and Saudi Arabia appeared at the top of the preferred investment destinations for investors due to favorable business policies, completing 239 deals worth $24.5 billion. Both countries are also among the leaders in the number of deals in mergers and acquisitions in this region by volume and value, accounting for 52% of all deals and 81% of their value.
Sovereign funds, such as the Abu Dhabi Investment Authority, Mubadala, and the Public Investment Fund of Saudi Arabia, continued to dominate activity in M&A deals in the region, supporting the economic strategies of both countries. Limited deals in M&A in the first nine months of 2024 played a significant role in the overall volume of deals and their value, making up 52% by quantity and 73% by value.
The dynamic of local M&A deals showed growth and reached $19.3 billion, primarily due to transactions involving state-affiliated organizations in the sectors of oil, gas, metals, mining industries, and chemicals. Local deals in M&A represented 48% of the total number of deals.
In connection with the increase in the arrival of foreign direct investments in the private sector, 60% of all deals in mergers and acquisitions came from the United Arab Emirates, accounting for 67% of their total value. Brad Uotson, head of the M&A sector and strategy in the region of the Middle East and North Africa at "Ernst & Young", emphasized that due to favorable business legislation and effective frameworks, the Emirates remain preferred investment points.
