The value of mergers and acquisition deals in the Middle East and North Africa surged 57 per cent to reach $109.1 billion last year as the region's economies recovered from the coronavirus pandemic.
The total number of deals also jumped 40 per cent annually to reach 1,141, which is the highest annual total recorded since 1980, according to a new report from Refinitiv.
“The largest M&A deal in the Mena region of 2021 was Aramco Gas Pipelines Company in a deal worth $15.5bn lease and leaseback agreement for its gas pipeline network,” the report said.
A group of companies led by BlackRock Real Assets and state-backed Hassana Investment Company was involved in the Aramco transaction. Aramco Gas Pipelines Company is a subsidiary of Saudi Aramco, the world’s largest oil exporting company.
Inbound mergers and acquisition deals jumped 88 per cent to reach $45.4bn, while outbound deals rose 198 per cent to touch $30.2bn, a six year high. Saudi Arabia was the most targeted nation with $27.3bn in total deals, while energy and power was the most active sector with deals worth $38.8bn, the data showed.
"2021 was the first year M&A with any Mena involvement surpassed 1,000 deals demonstrating growing optimism in the region," Saiem Jalil, deals intelligence analyst at Refinitiv, said.
"Strong recovery in business performance throughout 2021 demonstrated a return for capital markets driving momentum, contributed by ECM (equity capital markets) proceeds up 193 per cent to $14.5bn and investment-grade corporate debt at record levels with $66bn in proceeds.”
The largest equity offering of the year was Saudi Telecom’s follow-on issuance of $3.2bn after the Public Investment Fund sold six per cent of its stake. Saudi Arabia was the most active country with $8.9bn in total proceeds, followed by the UAE at $4.3bn.
Investment banking fees in the Mena region increased 3 per cent to $1.4bn in 2021 during the period, according to Refinitiv.
Gulf economies grew 2.3 per cent in 2021 on the back of higher oil prices and fiscal stimulus measures, following a 4.9 per cent contraction the previous year when the pandemic began, Dubai’s biggest lender by assets said in a recent report. The countries are forecast to grow 5.1 per cent on average this year.
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PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
- For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
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- Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
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The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
