EY: Kingdom, UAE lead MENA M&A market deal activity in H1

Technology, real estate and consumer products are leading M&A sectors by transaction value in H1.
Domestic deal value increases 67 percent in H1, 2016, compared to H1, 2015.
Despite sluggish macro-economic situation at the beginning of 2016, overall deal activity in H1, 2016 was largely consistent with H1, 2015. 
Saudi Arabia, the UAE and Egypt were the top three markets in terms of deal activity in H1 2016. 
Announced deal value in the MENA region decreased from $21.9 billion in H1, 2015 to $19.7 billion in H1, 2016, a decrease of 10 percent.
Technology ($4.4 billion), real estate ($4.2 billion ) and consumer products ($3.7 billion) were the top three sectors by deal value in H1, 2016. 
EY’s MENA Transaction Advisory Services Leader Phil Gandier says: “With modest recovery in the macro-economic situation, the outlook for M&A in H2, 2016 remains cautiously optimistic and the deal activity on a full year basis in 2016 is expected to mirror the performance in 2015.”
In H1, 2016, both from a deal activity and value perspective, significant portion of technology and real estate deals were outbound.
In line with the trend noticed in H1, 2015, acquisition capital allocation to outbound transactions in H1 2016 was at 52 percent of total deal value. Europe and the United States continued to be the top two destinations for outbound transactions. 
Domestic M&As had a positive performance in the first half of 2016, recording an increase in value of 67 percent in H1, 2016, compared to H1, 2015. During this period, consumer products, industrial products, real estate, banking and capital markets witnessed significant deal activity. 
EY’s MENA M&A and Equity Capital Markets Leader Anil Menon says: “Improving business sentiment and investor confidence is expected to see an uptick in domestic M&A activity during H2, 2016 especially in consumption led sectors in key markets such as Saudi Arabia and the UAE.

Source: Arab News