Market Insights Financial Corporate Finance

Mergers and Acquisitions - United Arab Emirates

United Arab Emirates

The transaction value in the Mergers and Acquisitions market is projected to reach €6.79bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 18.56% resulting in a projected total amount of €8.05bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €131.60m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in United Arab Emirates is experiencing a significant increase in activity, driven by various factors shaping the market dynamics.

Customer preferences: In the United Arab Emirates, customers are increasingly seeking mergers and acquisitions as a strategic approach to expand their businesses, diversify their portfolios, and gain a competitive edge in the market. This trend is in line with global patterns where companies are looking to consolidate their positions through strategic partnerships and acquisitions.

Trends in the market: One notable trend in the UAE's M&A market is the growing interest from international investors looking to capitalize on the country's strategic location, stable political environment, and business-friendly policies. This influx of foreign investment is fueling the M&A activity in the region, particularly in sectors such as real estate, technology, and healthcare. Additionally, there is a noticeable shift towards cross-border M&A deals, indicating a more globalized approach by companies operating in the UAE.

Local special circumstances: The UAE's unique position as a hub for trade and investment in the Middle East makes it an attractive destination for M&A activity. The country's strategic location, well-established infrastructure, and favorable regulatory environment are conducive to mergers and acquisitions. Moreover, the government's efforts to diversify the economy away from oil dependency have created new opportunities for M&A deals, particularly in emerging sectors like renewable energy and tourism.

Underlying macroeconomic factors: The M&A market in the UAE is also influenced by macroeconomic factors such as fluctuating oil prices, global economic conditions, and geopolitical stability in the region. As oil prices continue to recover from previous lows, there is a renewed sense of confidence in the market, leading to increased M&A transactions. Furthermore, the UAE's efforts to enhance its business environment through regulatory reforms and initiatives to attract foreign investment are driving the growth of the M&A market in the country.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.