The Middle East & North Africa (MENA) has much to offer corporates and financial investors in pursuit of M&A. The region is increasingly opening its doors to foreign direct investment (FDI) and growing more diverse in the number and types of deal opportunities that are available.

For this report, in association with Baker McKenzie and SS&C Intralinks, we engaged with strategics and private equity firms active in dealmaking in the region to understand where they see the largest M&A opportunities right now, what is motivating them to invest in MENA and what they expect from this market in a post-pandemic world adjusting to inflationary pressures and tightening financial conditions.

Key findings include:

• 66% of respondents based in MENA say that they expect the level of ESG-related regulatory scrutiny within MENA to increase in the next three years, while 73% of those based outside of MENA feel the same.
• The UAE and Saudi Arabia are highlighted by 77% and 76% of respondents respectively for being MENA countries they expect will most likely see some of the fastest growth in M&A deal activity over 2023.
• 63% of those based in MENA expect oil and gas to see some of the fastest growth in M&A activity in MENA over 2023. When asked about where they plan to invest, however, TMT, industrials and chemicals, and consumer and retail were the top sectors.
• Joint ventures are seen as one of the most attractive types of investment for 73% of corporate MENA buyers and 60% of PE MENA buyers.

Methodology

In Q3 2022, Mergermarket surveyed 200 dealmakers that had either completed a deal in the past two years or were planning to complete a mergers and acquisitions (M&A) deal within the MENA region over the next two years. Of these respondents, 100 were corporates and 100 were private equity (PE). 100 were headquartered within the MENA region and 100 outside of MENA. Private equity firms and corporates had a minimum AUM and revenue of USD 100 million respectively. On a general basis, all charts show overall figures except when figures based on region or corporate/PE are statistically significant.