Corporate Finance - MENA

MENA

The revenue in the Corporate Finance market is projected to reach US$11.33bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.80% resulting in a projected total amount of US$12.39bn by 2029.
The average transaction value in the Corporate Finance market amounts to US$125.20m in 2024.
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 Corporate Finance market in MENA is experiencing a significant transformation driven by various factors.

Customer preferences: Customers in the MENA region are increasingly seeking more diverse and sophisticated financial products and services, reflecting a growing appetite for investment opportunities and risk management strategies. They are gravitating towards tailored financial solutions that cater to their specific needs and offer higher returns.

Trends in the market: In the United Arab Emirates (UAE), there is a noticeable trend towards Islamic finance products, in line with the country's position as a global hub for Islamic banking. This trend is driven by the preferences of the local population for Sharia-compliant financial instruments. Additionally, the UAE's focus on sustainable finance and green bonds is gaining traction, reflecting a growing awareness of environmental, social, and governance (ESG) factors among investors.

Local special circumstances: Saudi Arabia, as the largest economy in the region, is witnessing a surge in mergers and acquisitions (M&A) activities, fueled by the government's privatization efforts and economic reforms. The country's Vision 2030 agenda is driving diversification and privatization initiatives, leading to increased demand for corporate finance services. Moreover, the Kingdom's push towards developing its capital markets is creating opportunities for investment banking and capital raising activities.

Underlying macroeconomic factors: The overall economic stability and growth prospects in the MENA region are playing a crucial role in shaping the Corporate Finance market. Factors such as favorable demographics, increasing foreign direct investment (FDI), and government initiatives to boost non-oil sectors are creating a conducive environment for financial services firms to expand their offerings and cater to the evolving needs of businesses and individuals. Additionally, regulatory reforms aimed at enhancing transparency and investor protection are instilling confidence in the market and attracting more participants.

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.