Middle East M&A activity drops in 1H2017 as investors shift to lower-risk markets: The number of M&As in the MENA region dropped by 23% y-o-y in 1H2017 “as investors focus on low-risk markets outside the region, plagued by political uncertainties and slowing economic growth,” an EY report picked up by The National finds. Total transaction value also declined by 17% y-o-y in 1H2017 to USD 31.9 bn from USD 38.9 bn last year, with only 192 transactions executed, compared to 250 last year. Outbound transactions — whose value rose by 123% y-o-y during the six months — accounted for the larger part of the total value for 1H2017, having brought in around USD 19.6 bn from 61 transactions, making MENA “a net exporter of capital,” said EY’s MENA transaction advisory services leader Phil Gandier. He added that c. 61% of M&A capital flowed out of the region. “We expect this trend to continue for the remainder of the year as investors continue to see more value and lower risk in non-MENA markets.” Inbound sales rose in value by 36% y-o-y, while domestic transactions fell 74% y-o-y but remained in the lead in terms of volume with 93 transactions.

Oil and gas-related activity accounted for over 76% of total transaction value for the period, followed by airlines, power and utilities, chemicals and banking and capital markets.