Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
The UAE remains the top investment destination in the GCC and broader MENA region, with its favourable business conditions, robust regulatory framework, and strategic investment opportunities giving it an edge over other countries, according to a new report from Ernst & Young.
The recently released 2024 MENA M&A Insights report, found that M&A activity had boomed in the region in the first nine months of the year recording 522 deals worth $71 billion, a 9% year-on-year(YoY) increase in which the UAE accounted for a significant share of the activity.
"Deal activity in the MENA region has seen a notable improvement this year, driven by strategic policy shifts, the liberalisation of investment regulations and robust capital inflows from investors," Brad Watson, EY MENA Strategy and Transactions Leader, said.
"In particular, the UAE remained a favoured investment destination during the first nine months of 2024 due to its business-friendly regulations and efficient legislative framework."
The UAE, alongside Saudi Arabia, represented 52% of total MENA deal volume and 81% of deal value.
The UAE was home to the region's largest transaction of the year, the $12.4 billion acquisition of Truist Insurance Holdings by Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment.
Mubadala, one of the country's prominent sovereign wealth funds, also joined forces with Abu Dhabi Investment Authority (ADIA) and Pacific Alliance Group (PAG) to invest $8.3 billion in a 60% stake in Chinese shopping mall operator Zhuhai Wanda Commercial Management Group.
According to EY, these transactions exemplified the UAE's ability to attract and execute large-scale, cross-border deals, which accounted for 52% of MENA's total M&A volume and 73% of its value during the period.
The country's focus on digital transformation and consumer-centric sectors added further dynamism, with technology and consumer products accounting for 31% of domestic deal volume.
Meanwhile, inbound M&A activity further underscored the UAE's global appeal with the country attracting 60% of MENA's total inbound deal volume and 67% of its value, with strong interest from the United States and the United Kingdom.
The report also found that technology and professional services were standout sectors, driven by the UAE's investments in artificial intelligence, digitisation, and its increasingly diversified economy, with almost 80% of US investment in these sectors going to the UAE.
