Middle East sees steady increase in cross-regional M&A –Baker & McKenzie
The Middle East saw a steady rise in inbound and outbound cross-regional M&A activity in 1H2016, according to Baker & McKenzie’s quarterly Cross-Border M&A Index (pdf, Middle East section on page 9). The Middle East’s position on the index soared to 141 from 437 in the second quarter, with the UAE topping the list as the most active in the region in both outbound and inbound investment. The volume and value of inbound agreements in the region rose to 10 worth USD 1.4 bn in 2Q2016 from six worth USD 349 mn in 1Q2016. The energy and utilities sector nabbed the lion’s share with three agreements valued at USD 1.7 bn. Outbound M&A in 2Q2016 rose to USD 4.26 bn from USD 985 mn in 1Q2016, with activity focused on opportunities in technology and consumer-drive industries. “Overall, anticipated GDP growth in the Middle East through to 2020, coupled with regional demographics, point to a gradual growth story in cross-border M&A,” according to the report.