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The UAE was investors’ preferred destination for acquisitions in 2023 thanks to “its business-friendly regulations and efficient legal framework,” writes EY in its 2023 MENA M&A Insights update. The UAE and Saudi Arabia saw a combined 305 transactions worth USD 24.8 bn in total, with the UAE seeing the largest acquisition of the year in the region, Apollo Global Management’s USD 8.2 bn acquisition of Univar Solutions.
Mubadala + ADIA among the biggest drivers of M&A activity: Abu Dhabi Investment Authority (ADIA), Mubadala, Saudi Arabia’s Public Investment Fund (PIF), and the Qatar Investment Authority led regional M&A activity with a focus on “national development and investing in sectors of the future,” EY MENA Strategy and Transactions Leader Brad Watson said.
UAE investors 💗 the US: Emirati investors targeted American firms in 21 transactions worth USD 15.3 bn, EY said.
MENA countries closed mergers and acquisitions worth USD 86 bn in 2023, up 4% from the year before despite regional tensions and global economic uncertainty.
Which sectors saw traction? Tech transactions led the pack, with 141 M&As recorded in 2023, while the energy and resources sectors — including metals and mining, oil and gas, and chemicals — also saw “significant capital deployment.”
Most came from the GCC: Gulf nations closed 565 transactions, worth some USD 83.2 bn.
Lots of cross-border and domestic transactions: Cross border M&As made up 72% of the total value of M&As in 2023, with North America remaining the largest acquiring region by value — with transactions totaling USD 2.7 bn — and largest number of inbound MENA transactions — with 32. Domestic transactions made up 49% of the total volume of MENA M&As.
Outbound transactions accounted for the lion’s share of value of transactions, with 208 outbound M&As worth a total of USD 53.5 bn, the report said.
Looking ahead: “We expect M&A activity in MENA to remain robust in 2024 given continuingsecular trends around energy transition and digitalization of everything,” Watson said.
