COMMENTS: MENA money has been restructuring its portfolios to adapt to the changing economic in the region as well as turbulent and changing geopolitical actions worldwide. Merger and acquisition (M&A) activity continues to be robust and after a big decline in 2017, M&A’s in the 2nd quarter of 2018 have risen to approx. US$ 34 Billion (up 74% on the previous year). Deals Buying into the MENA region increased 110% and inter-MENA deals increased 232%. Interestingly, Deals buying outside the MENA region decreased slightly. Is the MENA wealth retreating inwards?
Of course, it is happy times for the brokers, investment banks, lenders and the other members of the financial community.
NEGATIVE FOR: for foreign corporations expecting Middle Eastern investments to flow to them.
POSITIVE FOR: Middle Eastern economies as capital outflows are reduced, local corporations are strengthened and risk exposure to foreign sovereign dictums are reduced.
IMPACT POTENTIAL: Medium so far, as the total amount involved remains relatively small.
TIME SCOPE: Medium and Long Term