Qatar was the “most active” nation in the Middle East accounting for 41% of overall activity in the debt capital markets, a report has shown.
Acquisitions by companies based in Qatar accounted for 31% of the Middle Eastern outbound mergers and acquisition (M&A) activity, Thomson Reuters/Freeman Consulting said.
But outbound M&A activity in the region fell 22% from first half 2015 to reach $9.2bn, the lowest first half total since 2014, it said.
Middle Eastern debt issuance reached $32.9bn during the first six months of this year, it said.
The report showed that Middle Eastern investment banking fees reached $416.8mn during H1, 2016, an 8% increase compared to fees recorded during the first six months of 2015 and the strongest period for investment banking fees in the region since 2014.
Nadim Najjar, managing director (MENA) at Thomson Reuters, said, “The value of announced M&A transactions with any Middle Eastern involvement reached $18.7bn during the first half of 2016, a decline of 29% compared to the first half of 2015 and the slowest first six months for deal making in the region since 2014.”
“Middle Eastern equity and equity-related issuance totalled $1.1bn during the first half of 2016, an 80% decline from the first half of 2015 and the slowest opening six-month period for equity capital markets issuance since 2004. Bolstered by a record-breaking second quarter, Middle Eastern debt issuance reached $32.9bn during the first half of 2016, a 45% increase compared to the value raised during the first half of 2015 and the strongest first half for DCM issuance since records began in 1980,” he added.
Equity capital markets underwriting declined 77% compared to last year, while debt capital markets fees totalled $63.7mn, up 48% from 2015.
As for M&A deals, outbound M&A activity fell 22% from first half 2015 to reach $9.2bn, the lowest first half total since 2014.
Overseas acquisitions from Saudi Arabia accounted for 42% of Middle Eastern outbound M&A activity, while acquisitions by companies based in Qatar and United Arab Emirates accounted for 31% and 11%, respectively.
Domestic and inter-Middle Eastern M&A decreased 22% year-on-year to $6.1bn. Inbound M&A fell 76% to $809.8mn, a seven-year low.
Technology was the most active sector, accounting for 22% of Middle Eastern involvement M&A. The largest deal with Middle Eastern involvement during the half was the $3.5bn investment in United States-based Uber Technologies by Saudi Arabia’s Public Investment Fund.
JP Morgan, which advised Uber Technologies, topped the first half 2016 announced any Middle Eastern involvement M&A league table. Jones Lang LaSalle and CBRE Holding, which advised BlackRock on the $2.5bn sale of its Asia Square Tower to Qatar Investment Authority, ranked second and third respectively.
In respect of Equity Capital Markets, six initial public offerings raised $379.7mn and accounted for 35% of first half 2016 activity in the region.
As for Debt Capital Markets, Qatar was the most active nation in the Middle East accounting for 41% of overall activity, followed by United Arab Emirates and Oman. International Islamic debt issuance increased 10% year-on-year to reach $19.4bn during the first half of 2016, the largest first half for issuance since records began.