Market Insights Financial Corporate Finance

Investment Banking - GCC

The revenue in the Investment Banking market is projected to reach US$2.68bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.69% resulting in a projected total amount of US$3.06bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (US$130.10bn in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

The Investment Banking market in GCC is experiencing a shift in customer preferences towards more diversified and sophisticated financial products and services.

Customer preferences: Customers in the GCC region are increasingly seeking tailored and innovative investment solutions to meet their financial goals. They are showing a growing interest in alternative investments such as private equity and venture capital, in addition to traditional services like mergers and acquisitions and debt financing.

Trends in the market: In Saudi Arabia, the largest economy in the GCC, there is a noticeable trend towards privatization and economic diversification, which is driving demand for investment banking services. The country's Vision 2030 plan is creating opportunities for investment banks to participate in major infrastructure projects and strategic partnerships.

Local special circumstances: The introduction of regulatory reforms and initiatives to enhance transparency and corporate governance practices in the UAE is shaping the investment banking landscape in the country. With Dubai emerging as a regional financial hub, there is a growing demand for investment banking services to support cross-border transactions and capital raising activities.

Underlying macroeconomic factors: The stability of oil prices and efforts to reduce dependence on oil revenues are influencing the investment banking market in GCC countries. As governments work towards economic diversification and privatization, investment banks are playing a crucial role in facilitating capital flows and supporting the growth of non-oil sectors. Additionally, the region's strategic location and infrastructure development initiatives are attracting foreign investors, further driving the demand for investment banking services.

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.