UAE tops Mideast in private equity deals

The UAE emerged as the top target country in the Middle East for private equity deals executed in the first half of 2009, showed data compiled by Bureau van Dijk Electronic Publishing (BvDEP). Despite the global slowdown depressing private equity and mergers and acquisitions (M&A) activity worldwide, the UAE saw as many as seven deals in the first half, with Jordan and Kuwait, the runners-up, managing just two deals each. However, as a stark reminder to the opaque nature of the sector, the worth of the deals involving Intel Capital Corporation, Addax Bank, Abraaj Capital and Navis Capital Partners, is not known, thus relegating the country to the bottom of the table when it comes to ranking countries by deal value. According to BvDEP statistics, private equity deal-making in the region in H1 2009 plunged 79 per cent by value to $314 million (Dh1.15 billion) and 41 per cent by volume to 13 deals compared to H2 2008, which saw 22 deals worth $1.5bn executed in the region. Reflecting international trends, M&A activity in the Middle East too continued its downward journey during the period, with the value of regional transactions slumping to 2006 levels. Middle Eastern M&A declined in value by 70 per cent to $6.24bn from $21.03bn in H2 2008 and plunged 81 per cent from $32.44bn in H1 2008. The volume of M&A deals performed better but was still down by a fifth over the six months of the year at 122 and was 49 per cent lower from the high of 241 recorded in H1 2008. Nevertheless, the UAE was the top performer again in terms of the number of M&A deals, accounting for 36 out of the total 122 deals executed in H1 2009. However, in terms of value, Saudi Arabia tops the chart with deals worth $1.25bn. Click here for graphic. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .