Macroeconomic challenges weighed on M&As last year: Egypt saw a 53% y-o-ydecrease in the number of mergers and acquisitions in 2023 to 139 transactions, whose total value also dropped 62% to USD 3.5 bn amid geopolitical and macroeconomic challenges, according to a report (pdf) by law firm Baker McKenzie.

But on the plus side, activity picked up in the second half of 2023: The value of M&A transactions increased 383% in 2H 2023 compared to the first half of the year to reach USD 2.8 bn. The number of M&As also increased 32% over the same period.

What they said: “While the M&A landscape in Egypt faced notable challenges throughout 2023, the surge in total value in the second half of the year signals resilience … within the market,” said Hani Nassef, managing partner at Helmy, Hamza & Partners, Baker McKenzie Cairo.

The details: While the value of cross-border transactions — including inbound and outbound transactions — dropped 80% y-o-y in 2023 to USD 1.6 bn, domestic transactions increased in value to USD 1.8 bn — despite a drop in the number of domestic M&As by 51% during the same period.

By country: Saudi Arabia was the primary target for Egyptian investors, accounting for 25 transactions, followed by the UAE and Kuwait. While for foreign investors interested in Egyptian companies, the US led the pack with 14 agreements, followed by Saudi Arabia and the UAE.

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