#UAE leads first-half Mena M&A deal activity driven by sovereign funds

UAE leads first-half Mena M&A deal activity driven by sovereign funds

The UAE, the Arab world’s second-largest economy, dominated mergers and acquisitions activity in the Middle East and North Africa region, leading in both volume and value of transactions in the first six months of the year.

Government policies and efforts to boost the ease of doing business drove deal flow and foreign direct investment into the country, consultancy EY said in its first-half Mena M&A report.

Overall deal activity across the entire region, however, slowed due to the continued rise in interest rates amid global economic headwinds during the six-month period.

The number of deals fell 14 per cent year on year to 318 at the end of the first-half of this year, while the deal volume for the Gulf states reached 254.

“Deal making got off to a slow start in 2023 with rising interest rates, persistent inflation and economic uncertainty weighing heavily on M&A activity,” said Brad Watson, EY Mena strategy and transactions leader.