28 August 2017
The number of merger and acquisition (M&A) deals carried out in the Middle East and North Africa (MENA) region in the first half of 2017 fell by 23 percent year-on-year, according to accountancy firm EY.

It said that 192 deals were conducted in the region during the first six months, down from 250 in the same period last year.

Announced deal values in the region also dropped by 17 percent to $31.9 billion. The biggest deal announced during the period was aircraft leasing company Dubai Aerospace Enterprise's acquisition of Irish aircraft lessor AWAS Aviation Capital for $7.5 billion. The deal was completed last week. The most active sector in terms of deal values was the oil and gas market, where $11.5 billion of deals were done.

During the second quarter of the year, the number of deals dropped by 41 percent year-on-year to 80, from 135 a year earlier. Deal values fell by 37 percent to $12.7 billion for the same period.

Despite the declines, Anil Menon, Mena M&A and equity capital markets leader for EY, said: "The market is loading up for a spate of deal announcements soon after summer.

“There is significant deal activity in retail and consumer products as well as oil and gas, and a secular shift in capital allocation to the e-commerce and tech sectors."

Among the technology deals announced during the first half of 2017 were Amazon.com's acquisition of Dubai-based online marketplace Souq.com, Emaar Malls' $151 million purchase of a 51 percent stake in online fashion retailer Namshi and Noon.com's acquisition of JadoPado.

© Zawya 2017