In the previous weeks, we have been discussing M&A transactions from different regions across the globe. This week we will analyse the M&A activity in the Middle East and Africa.

Keeping in line with a majority of the world, the Middle East and Africa M&A activity declined in both numbers and value across the period 2019-2020. The difference was fairly staggering with the number of deals having fallen by 30% and the value by 32.5%.

Nonetheless, although MergerMarket recorded a lower number of deals and value, 2019-2020 saw the second highest yearly value for the Middle East and Africa! Thus, it appears there maybe a great deal of opportunity in this region in the coming years.

As a result of M&A transactions declining in the region by $97Bn USD, it is not surprising to report that many industries also recorded a decline in activity, such as Industrials & Chemicals (89%) and Technology (44%) sectors.

However, not all industries faltered. Mergermarket reported that Financial services saw its highest annual value in 2020, a 199% increase from the previous year, Energy, Mining & Utilities also saw a 39% rise in value which was similarly mimicked by the Consumer Sector who recorded a 32% increase.

To conclude, in what appears to have been a difficult year for all, the Middle East and Africa show signs of opportunity in the future.

This report was created by Ruby Datum with all data copyright reserved by MergerMarket.

With M&A transactions being the main use of Virtual Data Rooms it is clear that this technology is being confidently adapted by law firms. Moreover, the role of cyber security has been enhanced during the COVID-19 era in M&A procedures as in-person negotiations are unable to occur. Awarded the ISO9001 and ISO27001 cyber security accreditation in addition to a two-factor authentication (including hardware-based) and rigorous security testing by a CREST accredited company, Ruby Datum is committed to providing a quality and secure platform and service. Furthermore, with fast and bespoke integrations for your business, alongside user specific permission features, Ruby Datum’s Virtual Data Rooms are the ideal storage location for your highly confidential data. 

Keep your eyes pealed for more in-depth reports into each region coming soon!

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