UAE M&A activity drops 24 percent in 2014

24 Dec 2014

(MENAFN) According to a report by Baker & McKenzie Habib Al Mulla, the total value of merger and acquisition (M&A) activity in the UAE dropped 24 percent to reach USD8.5 billion as of December 14 this year in comparison with USD11.2 billion in 2013, though it is expected that the activity will accelerate again next year, Emirates 24/7 reported.

As of December 14, the number of announced inbound M&A deals in the UAE has reached is 58 with an aggregate value of USD3.98 billion, an increase of 208 per cent compared with 62 deals in 2013 with a value of USD1.29 billion in 2013, while in terms of countries, the US was registered as the largest acquirer of UAE companies, with 8 deals worth USD3.2 billion in total.

The US was followed by the Cayman Islands USD238 million in terms of deal value, while India, with 4 deals, followed in terms of deal count, and Qatar came in the third spot in terms of deal value USD150 million and deal count with 3 deals.

In the UAE, outbound activity has amounted to USD4.52 billion this year, representing a 54 percent decline in comparison with USD9.91 billion recorded last year, while in term of countries, the UK dominated the UAE outbound M&A with 39 percent, followed by Ireland with 22.2 percent, Italy 14.8 per cent, and Egypt, with 10.7 percent), with the countries combined representing almost 87 percent of total deal value.

In terms of deal count, Egypt topped the list with 11 deals, followed by the UK, which had 8 deals, the US with 7 deals and Turkey with 5 M&A deals..

“The increasing trend looks set to continue in 2015, with stable markets such as the UAE remaining attractive to international investors. Factors such as the UAE’s increasing importance as a business hub for the Middle East and Africa are fueling optimism for a further acceleration of M&A activity in the region,” the UAE Head of Corporate/M&A for Baker & McKenzie Habib Al Mulla said.