Market Insights Financial Corporate Finance

Mergers and Acquisitions - GCC

The transaction value in the Mergers and Acquisitions market is projected to reach US$21.06bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -21.37% resulting in a projected total amount of US$16.56bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$0.23bn in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

The Mergers and Acquisitions market in GCC has been experiencing a steady increase in activity over the past few years.

Customer preferences: In the GCC region, customers are increasingly looking for strategic acquisitions that can provide them with access to new markets, technologies, and talent. They are also interested in transactions that can help them diversify their portfolios and strengthen their competitive position in the market.

Trends in the market: One trend that has been observed in the Mergers and Acquisitions market in the GCC is the rise of cross-border transactions, particularly with companies from Asia and Europe. This trend is driven by the region's strategic location, attractive investment opportunities, and government efforts to promote foreign investment. Additionally, there has been a noticeable increase in mergers and acquisitions within the technology and healthcare sectors as companies seek to capitalize on the region's growing digital economy and increasing healthcare needs.

Local special circumstances: The GCC region is known for its oil-rich economies, which have traditionally attracted significant foreign investment. However, with the recent decline in oil prices, there has been a shift towards diversifying the economy and attracting investment in non-oil sectors. This has led to an increase in M&A activity in industries such as real estate, tourism, and renewable energy as companies look to capitalize on new growth opportunities.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Mergers and Acquisitions market in the GCC. These include government initiatives to privatize state-owned enterprises, regulatory reforms to encourage foreign investment, and the region's young and growing population driving demand for goods and services. Additionally, the GCC's strategic location as a gateway between East and West has made it an attractive destination for companies looking to expand their presence in the Middle East and beyond.

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.