Market Insights Financial Corporate Finance

Mergers and Acquisitions - Kuwait

Kuwait

The transaction value in the Mergers and Acquisitions market is projected to reach US$3.22bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -82.92% resulting in a projected total amount of US$0.55bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$818.30m 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).

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Region

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Currency

Analyst Opinion

The Mergers and Acquisitions market in Kuwait is witnessing a steady growth trajectory in recent years.

Customer preferences: Kuwaiti investors are showing a growing interest in mergers and acquisitions, driven by the desire to diversify their investment portfolios and capitalize on emerging market opportunities. Additionally, there is a preference for strategic acquisitions that can provide access to new technologies, markets, and talent.

Trends in the market: One notable trend in the Kuwaiti M&A market is the increasing activity in the energy sector, particularly in oil and gas. With Kuwait being a major player in the global oil market, M&A deals in this sector are strategic moves to strengthen market position and enhance operational efficiencies. Moreover, there is a noticeable trend towards cross-border acquisitions, as Kuwaiti companies seek to expand their footprint beyond the domestic market and tap into international growth opportunities.

Local special circumstances: Kuwait's regulatory environment plays a significant role in shaping the M&A landscape. The government's efforts to privatize state-owned entities and encourage foreign investment have created a conducive environment for M&A activity. Additionally, the presence of sovereign wealth funds in Kuwait adds a unique dimension to the M&A market, with these funds often playing a key role in financing large-scale deals.

Underlying macroeconomic factors: The stability of Kuwait's economy, supported by its vast oil reserves and prudent fiscal policies, provides a solid foundation for M&A activity. The country's strategic geographic location as a gateway to the Middle East and North Africa region also attracts investors looking to capitalize on regional growth opportunities. Furthermore, Kuwait's efforts to diversify its economy away from oil dependency are driving investments in non-oil sectors, leading to a more dynamic M&A market landscape.

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.