Dubai—Agencies
The value of M&A deals in the Middle East and North Africa region—both completed and announced—rose to $10.6 billion in the first half of 2013 from $5.1 billion U.S. dollars in the first half of 2012, representing an increase of 108%.
This was revealed by Ernst & Young in the latest edition of its report. Conversely, the report showed a 37% decline in the value of outbound deals, from $10.5 billion in the first half of 2012 to $6.6 billion in the first half of 2013, as well as a 13% decline in the value of domestic deals.
Phil Gandier, Head of Transaction Advisory Services at Ernst & Young Middle East and North Africa, said: ”The doubling of the value of inbound deals since the first half of 2012 is an interesting trend, as inbound and outbound deal flows have moved in opposite directions compared to last year, with outbound deal value being nearly double that of inbound deals. The UAE continues to play a key role in attracting investment to the region, accounting for 25% of inbound deal volume in the first half of 2013. This overall positive improvement in inward investment indicates continued confidence in the Middle East and North Africa markets, regardless of the political situations in some countries in the region.”
Egypt recorded the largest inbound deal by value, accounting for 83% of the total value of inbound deals in the first half, and saw two major announced deals with a total value of 8.3 billion U.S. dollars in the telecommunications and construction sectors. The telecommunications sector accounted for the majority of the value of inbound deals, mainly due to the acquisition of “Orascom Telecom Holding” in Egypt by “Baskindal” for US$6.4 billion, which represented the largest deal in the first half of 2013.