Announced M&A transactions in the MENA region increased 149% y-o-y in 1H 2025 to USD 115.5 bn, their highest level on record since 1980, Zawya reports, citing LSEG data. The number — including intended, pending, and completed agreements — also grew 16% y-o-y to a three-year peak.

By the numbers: Inbound M&A, where MENA companies were the targets, amounted to USD 48 bn, representing an 18% y-o-y increase. Meanwhile, outbound M&A from the region set an all-time 1H record at USD 64.5 bn, an 8% y-o-y increase.

Emirati firms were the most targeted, with inbound agreements to the UAE totaling USD 39.8 bn, followed by Saudi Arabia at USD 3.5 bn, Kuwait at USD 1.7 bn, Egypt at USD 1.3 bn, and Bahrain at USD 700 mn.

The materials sector came in the lead with 67% of the total agreements value, largely due to the pending USD 30.9 bn merger between UAE-based Borouge and Austria's Borealis. Meanwhile, the financial sector saw the highest number of transactions, which were valued at a total of USD 3.3 bn.

Behind the leap: Growth in the M&A activity is attributed to strong investor confidence, strategic diversification efforts, and robust sovereign capital, Zubair Mir, senior partner at Norton Rose Fulbright, told Zawya. The region’s ongoing regulatory reforms and initiatives to attract foreign direct investment are also fostering a favorable environment for both inbound and outbound transactions, Mir added.

Sectors to watch: M&A activity is expected to pick up in the second half of the year, particularly in the energy, clean energy, digital infrastructure, healthcare innovation, and technology sectors, Mir expects.

The leading advisors: Rothschild & Co topped the financial advisor league table for announced M&As in the first half of the year, advising on agreements worth a combined USD 76.1 bn and capturing a 65.9% market share. Goldman Sachs followed in second place with USD 75.6 bn, and Citi came third with USD 48.4 bn. Morgan Stanley, which held the top spot in 1H 2024, dropped to seventh place.

ALSO FROM PLANET FINANCE- US inflation is projected to hit 3% a year from now, the same level it was before President Donald Trump began taking trade protectionist measures, CNBC reports, citing a New York Federal Reserve survey.

MARKETS THIS MORNING-

Asian markets are still trading mixed this morning, with Japan’s Nikkei down 0.5% while the Shanghai Composite is up 0.3%. Meanwhile, Wall Street futures are slightly inching down following S&P’s first gains in three sessions.

EGX30

33,152

+0.4% (YTD: +11.5%)

USD (CBE)

Buy 49.54

Sell 49.67

USD (CIB)

Buy 49.58

Sell 49.68

Interest rates (CBE)

24.00% deposit

25.00% lending

Tadawul

11,278

-0.1% (YTD: -6.3%)

ADX

10,049

+0.4% (YTD: +6.7%)

DFM

5,834

+0.7% (YTD: +13.1%)

S&P 500

6,263

+0.6% (YTD: +6.5%)

FTSE 100

8,867

+0.1% (YTD: +8.5%)

Euro Stoxx 50

5,446

+1.4% (YTD: +11.2%)

Brent crude

USD 70.19

+0.1%

Natural gas (Nymex)

USD 3.21

-3.8%

Gold

USD 3,321

+0.1%

BTC

USD 111,080

+2.0% (YTD: +18.9%)

S&P Egypt Sovereign Bond Index

878.40

0.0% (YTD: +13.0%)

S&P MENA Bond & Sukuk

145.61

-0.2% (YTD: +4.1%)

VIX (Volatility Index)

15.94

-5.2% (YTD: -8.1%)

THE CLOSING BELL-

The EGX30 rose 0.4% at yesterday’s close on turnover of EGP 4.1 bn (16.9% below the 90-day average). Local investors were the sole net sellers. The index is up 11.5% YTD.

In the green: Qalaa Holdings (+5.6%), GB Corp (+4.8%), and Rameda (+4.6%).

In the red: EFG Holding (-2.4%), Telecom Egypt (-2.3%), and Sidpec (-1.8%).

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