Trends in Business Acquisitions: What Buyers Need to Know in the UAE Market
Trends in Business Acquisitions: What Buyers Need to Know in the UAE Market
Blog Article
Introduction
The United Arab Emirates (UAE) has seen a significant increase in cross-border mergers and acquisitions, driven by its strategic location and favorable business environment. The Mergers and Acquisitions businesses for sale market in the UAE is projected to reach a transaction value of US$7.91bn in 20241. This article will delve into the current trends, major deals, and the impact of M&A on the UAE economy.
Current Trends in M&A in the UAE
The UAE’s M&A market is experiencing a significant increase in activity, driven by various factors shaping the market dynamics. One notable trend is the growing interest from international investors looking to capitalize on the country’s strategic location, stable political environment, and business-friendly policies1.
Major M&A Deals in Recent Years
There have been significant deals in the banking and finance sector, including a USD115 billion three-way merger between Abu Dhabi Commercial Bank, Union National Bank, and Al Hilal Bank, and Dubai Islamic Bank’s acquisition of Noor Bank. The energy sector has also seen significant activity with the acquisition by Kohlberg Kravis Roberts and Blackrock of a 40% stake in Abu Dhabi National Oil Company.
Impact of M&A on the UAE Economy
M&A activities are considered a means of resolving crises and encouraging economic growth. The market for mergers and acquisitions has seen a substantial increase in 2021, particularly in the UAE. Agreements worth $11 billion were signed in the UAE in the first eight months of 20213.
Challenges and Opportunities
The private equity market in the UAE has been affected by exit barriers, including an unattractive IPO market and secondary sale market. On the other hand, one notable trend in the UAE’s M&A market is the growing interest from international investors looking to capitalize on the country’s strategic location, stable political environment, and business-friendly policies.
Conclusion
The future of M&A in the UAE looks promising, considering the current trends and market dynamics. With the projected transaction value of US$7.91bn in 20241, the UAE continues to be an attractive destination for international investors.