M&A action remains subdued in Gulf

* username: rupertbu

Hopes that 2009 would be a good year for domestic mergers and acquisitions in the Gulf have proved unfounded – to the disappointment of many underemployed bankers who moved to the region during the past half-decade.

M&A work was a priority for many investment banks that set up or expanded offices in the region before the financial crisis, as they expected foreign investments by sovereign wealth funds and, particularly, local deals.

Bankers then predicted the economic downturn would reinforce the case for corporate consolidation, and regional private equity businesses would seek to take advantage of lower prices. Instead, apart from outbound investments by sovereign funds and some restructuring, M&A advisory work has dwindled.