GCC M&A Report – Q2 2020

Executive Summary

Transactions decreased by 26% compared to Q2 2019

Throughout Q2 2020, the GCC market observed a total of 23 closed M&A transactions, a substantial decrease relative to the same period in the previous year. Overall, the total number of closed transactions decreased by 4% relative to the previous quarter, and 26% relative to the previous year.

The UAE dominated the market yet again as it accounted for 35% of the total transactions closed, followed by Saudi Arabia and Bahrain, who accounted for 26% and 17%, respectively. In addition, Bahrain, Oman, and Saudi Arabia each witnessed a slight growth in the total number of transactions closed, relative to the previous quarter. On the other hand, Qatar and UAE recorded a slight decline in the total number of transactions closed while Kuwait recorded no growth.

Moreover, the market attracted a significantly higher level of interest from foreign buyers when compared to the previous quarter, successfully closing a total of five transactions throughout the quarter. Foreign acquirers accounted for a greater number of the transactions closed relative to the previous quarter, beginning with 4% in Q1 2020 and rising to 22% in Q2 2020.

In addition, these transactions spanned across multiple sectors which was also observed in Q1 2020. With that being said, the sectors that witnessed the greatest level of activity throughout the quarter were the Financials, Industrials, Insurance and Utilities sectors.

Collectively, these sectors accounted for 67% of the total number of closed transactions. It is worth noting that the Financials and Industrials sectors were also among the sectors that witnessed the greatest level of activity in Q1 2020 as well.

Furthermore, GCC acquirers actively acquired both regional and international companies, whereas in the past quarter, they primarily invested in the regional market. Throughout Q2 2020, GCC acquirers closed a total of 13 transactions that involved international companies, which is 30% greater in comparison to Q1 2020, which recorded a total of 10 closed transactions that involved international companies.

Saudi and UAE buyers each accounted for 46% of these transactions, followed by Bahraini buyers who accounted for the remaining 8%. Kuwaiti acquirers purely invested in local companies while Oman closed a total of two transactions, one involving a local company while the other involved a regional firm. Lastly, Qatari acquirers did not close any transaction throughout the quarter.

Click "Download for free", to access the full report. For any queries, kindly contact research@markaz.com