Morocco Among MENA’s Top Five Target Countries by Deal Value

Morocco was among the top five target countries by deal value in the Middle East and North Africa (MENA) region during the first nine months of 2022, according to a recent EY MENA M&A insight report.

Rabat – Morocco was among the top five target countries by deal value in the Middle East and North Africa (MENA) region during the first nine months of 2022, according to a recent EY MENA M&A insight report.

Deal Value means the per share consideration to be paid to and/or received by shareholders of the company in connection with the agreement. The North African country has signed 22 deals worth $1.9 billion (MAD 20.4 billion) during this period, indicated the report, adding that Morocco ranked fourth in the region.

The United Arab Emirates led the ranking with 155 deals worth $17.2 billion, followed by Egypt with 99 deals with a value of $3.9 billion, and Saudi Arabia which signed 58 deals worth $3.4 billion.

Meanwhile, Oman followed Morocco in fifth position with a total of 10 deals valued at $0.7 billion.

The report indicated that the MENA region as a whole witnessed a total of 524 deals worth $55.2 billion between January and September 2022.

While “rising inflationary pressures, dampening economic demand, and global market disruptions” led to moderate growth in deal activity of 6% compared to the same time last year, deal value in the region fell by 23%, added the report.

The source added that domestic deals were the “main driver of activity” in the region, making up 51% of the total Mergers and Acquisitions (M&A) deal volume and 33% of deal value of the nine-month period.

EY MENA Strategy and Transactions Leader Brad Watson said that the MENA region “continues to record higher M&A activity, fueled by expected economic growth through higher oil prices and an acceleration in business-friendly reforms,” despite the current “uncertain economic times.”

“What is interesting from these latest results is the increasing M&A activity, not just emanating from traditional markets such as the UAE and Saudi Arabia, but also from other countries across the MENA region, namely Egypt, Morocco, Qatar and Oman,” said Head of MENA M&A Anil Menon.