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MENA witnesses 31% value drop in M&A

Saudi Arabia generated 38% of total MENA fees in 2022, and the UAE generated 35%

The Middle East and North Africa (MENA) area produced investment banking (IB) fees in the range of USD 1.6 billion in 2022. However, in contrast to a 33% reduction in global investment banking fees, prices rose 5% compared to 2021, according to Refinitiv.

The region’s advisory fees from finished M&A transactions were USD 509.6 million, a 35% increase over 2021.

According to Refinitiv, one of the major global providers of financial markets data and infrastructure, equity capital markets underwriting fees also grew 31% year over year to reach USD 450.0 million in 2022.

Debt capital markets fees decreased 54% to USD 124.9 million, the lowest full-year total since 2015. Syndicated lending fees decreased by 3% to a three-year low of USD 521.2 million.

With a total of USD 120.3 million or a 7.5% share of the overall fee pool, HSBC Holdings earned the most investment banking fees in the area in 2022, followed by Citi and JP Morgan.

Saudi Arabia generated 38% of total MENA fees in 2022, and the UAE generated 35%.

According to Refinitiv, the value of disclosed M&A deals involving any MENA region in 2022 was USD 85.2 billion, 31% less than in 2021.

The worldwide data source reports that the number of deal announcements in the region grew 6% from the previous year despite the value’s fall.

Deals with MENA targets totalled USD 49.3 billion in 2022, a four-year low and a 42% decrease from 2021.

The number of deals reached an all-time high and grew by 1% from 2021.

Domestic agreements climbed in value by 28% to USD 36.0 billion, while inbound deals with a non-MENA acquirer decreased by 77% from 2021’s all-time high of USD 13.4 billion.

The largest MENA-related transaction was CDPQ, a worldwide investment organization, investing USD 5 billion in three of Dubai-based DP World’s most prominent UAE properties.

MENA’s outbound mergers and acquisitions (M&A) reached a seven-year high of USD 31.9 billion, an increase of 6% above the 2021 value.

Deals aimed at industrial enterprises accounted for 23% of MENA’s target M&A in 2022, with the financial sector coming in second with 22%. Again, the industrial sector was the most active.

The UAE, Saudi Arabia, and Egypt were the countries that were targeted the most.

According to Refinitiv, Citi was recognized as the top financial advisor for M&As involving the MENA region, with JP Morgan and Goldman Sachs & Co. coming in second and third.

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