According to an Ernst & Young report,

The UAE records the highest level of mergers and acquisitions deals in the region

A report by Ernst & Young on M&A deals in the Middle East and North Africa stated that M&A activity in the region witnessed a significant recovery in 2021, registering an increase of 66% compared to 2020. Local (regional) deals topped the scene of these record levels It rose to 366 deals in 2021, compared to 192 deals in 2020.

The UAE witnessed the highest level of merger and acquisition activity in terms of the number of deals, with 303 deals, while Saudi Arabia dominated the largest share of the value of the announced deals, registering 47.4 billion US dollars.

Egypt also witnessed a strong activity of merger and acquisition deals during 2021, recording 118 deals worth $7.7 billion.

The report also showed that the value of announced merger and acquisition deals increased by 16% in 2021 to reach $99 billion, up from $85.2 billion in 2020, while the total value of the top 10 deals last year amounted to $58.8 billion, representing 59%. From the total value of all announced deals.

The technology sector witnessed the highest activity of deals in terms of number during 2021, and of the 43 incoming deals that this sector witnessed in the region, 20 deals were for the United Arab Emirates.

This reflects the growing appetite for digital transformation and the position of the UAE as a regional technology destination.

Brad Watson, Head of Transactions and Strategy for the Middle East and North Africa at Ernst & Young, said: “In 2021 we witnessed a significant increase in M&A activity in the MENA region, and this was a direct result of improved market conditions after the start of the pandemic ( COVID-19).

The recovery in oil and gas prices and improved health conditions also helped boost the economic outlook in the region, leading to renewed confidence in regional companies.

Government-related entities, including sovereign wealth funds and national oil companies, played a pivotal role in M&A activities in the Middle East and North Africa in 2021, acquiring $62.6 billion or 63% of the total announced deal value, which amounts to 99 Billion dollar.

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