Announced M&A transactions in the MENA region increased 149% y-o-y to USD 115.5 bn in 1H — 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, an 18% y-o-y increase. Outbound M&A from the region set an all-time 1H record, reaching USD 64.5 bn, with the number of transactions increasing by 8% y-o-y.

The UAE was the most targeted nation, with inbound agreements 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 agreement value, largely due to the pending USD 30.9 bn acquisition of Borouge by Borealis AG. Meanwhile, the financial sector saw the highest number of transactions, totaling USD 3.3 bn in value.

Behind the leap: The surge 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, particularly in the energy, clean energy, digital infrastructure, healthcare innovation, and technology sectors, Mir expected.

The leading advisors: Rothschild & Co topped the financial advisor league table for announced M&As in the first half, 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, while 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 ahead, the same level as before President 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.

ADX

10,049

+0.4% (YTD: +6.7%)

DFM

5,834

+0.7% (YTD: +13.1%)

Nasdaq Dubai UAE20

4,813

+0.5% (YTD: +15.6%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.2% o/n

4.3% 1 yr

TASI

11,278

-0.1% (YTD: -6.4%)

EGX30

33,152

+0.4% (YTD: +11.5%)

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%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.51

0.0% (YTD: -1.6%)

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 ADX rose 0.4% yesterday on turnover of AED 1.3 bn. The index is up 6.7% YTD.

In the green: Abu Dhabi National Ins. Company (+6.4%), Eshraq Investments (+6.1%) and E7 Group (+3.5%).

In the red: Abu Dhabi National Takaful Co. (-9.9%), Rak Co. for White Cement & Construction Materials (-4.3%) and GFH Financial Group (-4.3%).

Over on the DFM, the index rose 0.7% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai was up 0.5%.

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