The number of mergers and acquisitions in the Middle East and North Africa rose 13 per cent on an annual basis last year to 754 transactions, with the UAE topping M&A activity in the region, according to EY.
The region's "unprecedented" M&A activity came on the back of improved market conditions from higher oil prices, investor-friendly reforms and governments easing Covid-related travel restrictions, the London-based consultancy said on Monday in its EY MENA M&A Insights 2022 report.
The UAE recorded three of the region’s largest M&A deals, led by Canadian fund Caisse de Depot et Placement du Quebec’s acquisition of a 22 per cent stake in three of DP World's Dubai-based assets for $5 billion.
The second-biggest was an outbound deal by Abu Dhabi-based telco e&, which acquired a 9.8 per cent stake in the UK's Vodafone Group for $4.4 billion in May.
Adnoc's acquisition of 24.9 per cent stake in OMV from Mubadala Investment Company for $4.1 billion rounded off the top three deals.
"After a resurgence in 2021, M&A activity in the Middle East reached new heights last year, testifying to the success of companies adjusting their M&A strategies to the needs of the changing market," said Brad Watson, EY Mena strategy and transactions leader.
"Continuing a strong run, domestic deals were a significant driver of deal volume in the region.
"Furthermore, the number of inbound deals in the UAE indicates that non-Mena investors are showing significant interest in the conducive business environment created by its visionary government.”
The UAE, the Arab world’s second-largest economy, and the wider GCC region has seen a flurry of M&A activity amid strong investor demand as economies rebound at a quicker pace from the coronavirus-induced slowdown and liquidity has been shored up by high oil prices.
The UAE dominated the lists of M&A target countries and bidder countries by value last year, followed by Saudi Arabia in both rankings, EY said.
In the kingdom, the Public Investment Fund’s proposed acquisition of a 51 per cent stake in STC's telecom towers company Tawal is in line with the country’s Vision 2030 that seeks to diversify its economy away from oil, the report said.
Meanwhile, Saudi Aramco's acquisition of US motor oil and lubricant maker Valvoline's global products business for $2.7 billion was a "strategic transaction in the oil and gas sector".
Egypt and Oman also climbed into the top five rankings of Mena target and bidder countries, the M&A report showed.
The US had the highest Mena deal number at 35 — of which 19 were in the technology sector.
Domestic deals made up slightly more than half of the total M&A deal volume in Mena at 388 transactions and 34 per cent of the value at $28.4 billion, the report showed.
Outbound deals led in value with $40.1 billion across a total number of 201 transactions, while 165 inbound deals amounted to $14 billion in total disclosed value.
The region recorded 137 deals involving government-related entities (GREs) last year, which was 78 per cent higher than 2021 and the highest number since 2017, according to EY.
GRE-involved deals accounted for 49 per cent of the total disclosed deal value at $40.3 billion.
In terms of sectors, technology made up 25 per cent of the total deal volume in Mena, as the region seeks to become a hub for tech start-ups by further easing the conducting of business, reforming legislation and enabling investment.
"The macro-economic challenges in the US and Europe have triggered a retreat of capital to the Mena region with the GREs and regional strategics leading the pack," said Anil Menon, EY Mena head of M&A and equity capital markets.
"Large cap players are super active and hunting. The unprecedented volume of deal activity in 2022 is a clear reflection of an exceptionally buoyant deal environment, which we expect will continue in 2023."
Meanwhile, global M&A activity is off to a record slow start to the year, its slowest since 2010, according to a separate report by Goldman Sachs on Monday.
Year-to-date activity is down 65 per cent on the same period last year.
The slowdown comes amid continued macroeconomic uncertainty and the "prospect of increasing pressure on earnings" that has left companies "erring on the conservative side" and remaining in "defence mode", it said.
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Top tips to avoid cyber fraud
Microsoft’s ‘hacker-in-chief’ David Weston, creator of the tech company’s Windows Red Team, advises simple steps to help people avoid falling victim to cyber fraud:
1. Always get the latest operating system on your smartphone or desktop, as it will have the latest innovations. An outdated OS can erode away all investments made in securing your device or system.
2. After installing the latest OS version, keep it patched; this means repairing system vulnerabilities which are discovered after the infrastructure components are released in the market. The vast majority of attacks are based on out of date components – there are missing patches.
3. Multi-factor authentication is required. Move away from passwords as fast as possible, particularly for anything financial. Cybercriminals are targeting money through compromising the users’ identity – his username and password. So, get on the next level of security using fingertips or facial recognition.
4. Move your personal as well as professional data to the cloud, which has advanced threat detection mechanisms and analytics to spot any attempt. Even if you are hit by some ransomware, the chances of restoring the stolen data are higher because everything is backed up.
5. Make the right hardware selection and always refresh it. We are in a time where a number of security improvement processes are reliant on new processors and chip sets that come with embedded security features. Buy a new personal computer with a trusted computing module that has fingerprint or biometric cameras as additional measures of protection.
THE BIO
Occupation: Specialised chief medical laboratory technologist
Age: 78
Favourite destination: Always Al Ain “Dar Al Zain”
Hobbies: his work - “ the thing which I am most passionate for and which occupied all my time in the morning and evening from 1963 to 2019”
Other hobbies: football
Favorite football club: Al Ain Sports Club
Two products to make at home
Toilet cleaner
1 cup baking soda
1 cup castile soap
10-20 drops of lemon essential oil (or another oil of your choice)
Method:
1. Mix the baking soda and castile soap until you get a nice consistency.
2. Add the essential oil to the mix.
Air Freshener
100ml water
5 drops of the essential oil of your choice (note: lavender is a nice one for this)
Method:
1. Add water and oil to spray bottle to store.
2. Shake well before use.
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
