The recovery from Covid 19 and improved gas prices have fuelled a surge in mergers and acquisitions (M&A) in the Mena region during 2021.
A report from professional services firm EY showed a 66% increase in the number of M&A deals compared to 2020 .
The majority of the growth came from domestic and intra-regional deals which accounted for 366 transactions, nearly doubling the 192 deals conducted in 2020.
The EY Mena M&A Insights report also showed a 16% increase in value as well as the number of deals, from US$85.2 billion in 2020 to $99 billion in 2021.
Sovereign wealth funds and other government-related entities played a pivotal role in the M&A surge accounting for 63% of the total deal value. There was also an increased contribution from private equity firms that executed 165 deals in 2021 compared to 73 deals in the previous year.
“In 2021, we saw a tremendous surge in Mena M&A activity as a result of improving post-COVID-19 market conditions,” said Brad Watson, EY Mena strategy and transactions leader.
“The recovery in oil and gas prices and an improving public health backdrop have also helped to lift the economic outlook in the region, leading to renewed confidence in regional boardrooms.”
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