Husam Kutaifan, Managing Director of Investment Banking at Emirates Investment Bank, a client-focused, independent private and investment banking boutique headquartered in Dubai, told delegates at the Middle East Banking Forum today that he is bullish about the future of M&A in the region.
Kutaifan commented: “MENA M&A activity level has reached $27 billion year-to-date – its highest since 2001. Driven by improvements in the economy, private equity cycles ending and beginning, and greater liquidity among regional banks, M&A markets look bright. What we are finding in MENA is that investments and acquisitions are on the rise, particularly in sectors like telecommunications, banking, oil & gas and aviation. This is complemented by the trend we’ve seen among certain multinationals consolidating their presence in the region.
“A clear sign of market revival is the recently witnessed upward pressure in pricing of deals. Demand and supply dynamics in certain sectors are leading to competitive tension amongst bidders. Having said that, we still feel bullish about the outlook for M&A markets as both the macro and micro picture looks positive . This makes us confident that we will close one or two deals we are working on within the new few months. We also see many deals coming in the future as we have a healthy pipeline for 2014. The markets are back and we feel well positioned to capture the upcoming deal flow.”
Kutaifan was a panellist on “Middle East mergers and acquisitions and how banks are helping make them happen” at today’s Middle East Banking Forum. The Forum is the first forum to be hosted by the UAE Banks Federation, of which Emirates Investment Bank is a member, and it reflects the growing efforts being made by the UAE Banks Federation to provide added value and support to its members to develop the banking industry.