Market Insights Financial Corporate Finance

Investment Banking - Northern Africa

Northern Africa

The revenue in the Investment Banking market is projected to reach US$1.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.22% resulting in a projected total amount of US$2.12bn 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 Northern Africa is experiencing a gradual but steady growth, driven by various factors unique to the region.

Customer preferences: Investors in Northern Africa are increasingly seeking investment banking services that offer a balance between traditional and innovative solutions. They prefer personalized services that cater to their specific needs and risk appetites. Additionally, there is a growing demand for ethical and socially responsible investment opportunities in the region.

Trends in the market: In Egypt, there is a notable trend towards mergers and acquisitions as companies look to consolidate their positions in the market. This trend is driven by the need for cost efficiency and market expansion. In Morocco, the focus is shifting towards debt capital markets, with an increasing number of companies opting for bond issuances to raise capital. Tunisia, on the other hand, is witnessing a rise in private equity investments, particularly in sectors such as technology and healthcare.

Local special circumstances: Political stability and regulatory reforms play a crucial role in shaping the investment banking landscape in Northern Africa. Countries like Algeria and Libya, which are facing political uncertainties, experience slower growth in their investment banking sectors. In contrast, countries like Tunisia and Morocco, with stable political environments and supportive regulatory frameworks, attract more foreign investments and foster market growth.

Underlying macroeconomic factors: The economic diversification efforts in countries like Tunisia and Morocco are creating new investment opportunities in sectors such as renewable energy, tourism, and technology. Additionally, the region's strategic location as a gateway between Europe, Africa, and the Middle East is attracting foreign investors looking to capitalize on cross-border investment opportunities. The increasing focus on infrastructure development and digital transformation is also driving the demand for investment banking services in Northern Africa.

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.