Refinitiv, A London Stock Exchange Group Business, released the Middle East and North Africa Investment Banking Report for 2021. According to the report, investment banking fees in the Middle East & North Africa (MENA) totals US$1.4 billion in the full year of 2021, up 3% from the same period last year and the second-highest total on record.<\/p>\n\n\n\n
MENA equity capital markets (ECM) raised US$14.5 billion from 42 offerings in 2021, a 193% increase in proceeds from last year and a thirteen year high in the number of ECM deals. Debt Capital Markets (DCM) in the MENA region totals US$107.5 billion from 152 issuances in 2021, down 12% in proceeds compared to the same period last year.<\/p>\n\n\n\n
Commenting on the report, Saiem Jalil, Deals Intelligence Analyst, Refinitiv, said: “Despite the uncertainties around the pandemic and outlook for 2021, M&A in the MENA region recovered strongly with US$109billion in proceeds, up 57% from last year and the third US$100 billion year on record. 2021 was the first year M&A with any MENA involvement surpassed 1,000 deals demonstrating growing optimism in the region. Strong recovery in business performance throughout 2021 demonstrated a return for capital markets driving momentum, contributed by ECM proceeds up 193% to US$14.5 billion and investment-grade corporate debt at record levels with US$66 billion in proceeds.”<\/p>\n\n\n\n
INVESTMENT BANKING FEES<\/p>\n\n\n\n
Investment banking fees in the Middle East & North Africa (MENA) totals US$1.4 billion in the full year of 2021, up 3% from the same period last year and the second-highest total on record. Completed mergers and acquisition fees declined 26% to US$317.2 million, making up 22% of the total investment banking fee pool. Equity capital markets recorded their strongest year in 13 years, producing US$334.4 million in fees, a 251% increase from last year. Equity underwriting fees made up 23% of the total fee pool, the highest proportion since 2008.<\/p>\n\n\n\n
Bond underwriting fees accounted for US$271.6 million, down 7% however still account for one-fifth of the total MENA fee pool. Fees earned from syndicated lending total US$525 million, down 12% from 2020 and accounted for 36% of the total fee pool. The financial sector continued its dominance in 2021 for the highest fee-earning sector with US$495.5 million in related fees, or 34% market share. JP Morgan rose to the top spot from last year in the region, earning US$143.7 million in fees or a 9.9% share of the market. HSBC and Morgan Stanley took second and third place with 8% and 6.2% market share, respectively.<\/p>\n\n\n\n
MERGERS & ACQUISITIONS<\/p>\n\n\n\n
Announced M&A with any MENA involvement totals US$109.1 billion throughout 2021, a 57% increase from last year and the third year where any MENA involvement M&A volumes surpassed US$100 billion. A total of 1,141 deals was recorded in 2021, a 40% increase from 2020 and the highest annual total since records began in 1980. M&A involving a MENA target reached US$72.9 billion, making it the second-highest total since records began in 1980 and the strongest year of the number of deals with 863 deals in 2021<\/p>\n\n\n\n
Inbound M&A reached record levels with US$45.4 billion of M&A activity in 2021, up 88% and the highest level since records began in 1980. Outbound M&A totalled US$30.2 billion in 2021, up 198% from 2020 and a six-year high. The largest M&A deal in the MENA region of 2021 was Aramco Gas Pipelines Co in a deal worth US$15.5 billion lease and leaseback agreement for its gas pipeline network. Energy and Power was the most active sector with US$38.8 billion in deal activity, representing a 189% increase from last year.<\/p>\n\n\n\n
Saudi Arabia was the most targeted nation with US$27.3 billion in M&A activity, equivalent to half of target M&A recorded in the region. JP Morgan topped the any MENA Involvement M&A league table in 2021 with US$43.3 billion in related activity or a 40% share of the market. Goldman Sachs came second with a 37% share of the market.<\/p>\n\n\n\n
EQUITY CAPITAL MARKETS<\/p>\n\n\n\n
MENA equity capital markets (ECM) raised US$14.5 billion from 42 offerings in 2021, a 193% increase in proceeds from last year and a thirteen year high in the number of ECM deals. Initial public offerings raised US$8.2 billion in 2021, accounting for 56% of total proceeds, a 341% increase from 2020. Follow-on issuances totalled US$5.1 billion in 2021, a 65% increase from last year and a thirteen-year high.<\/p>\n\n\n\n
The largest equity offering of the year was Saudi Telecom’s Follow-on issuance of US$3.2 billion after the Public Investment Fund (PIF) sold 6% of its stake. Saudi Arabia was the most active country with US$8.9 billion in ECM proceeds followed by United Arab Emirates with US$4.3 billion. Citi takes the top spot in the MENA ECM league table advising on US$2.5 billion of deals or a 24% market share.<\/p>\n\n\n\n
DEBT CAPITAL MARKETS<\/p>\n\n\n\n
Debt Capital Markets (DCM) in the MENA region totals US$107.5 billion from 152 issuances in 2021, down 12% in proceeds compared to the same period last year. Investment-grade corporate debt recorded a total of US$65.7 billion, equivalent to 61% of total DCM proceeds and the highest annual total since records began in 1980. <\/p>\n\n\n\n
United Arab Emirates was the top nation for DCM activity with US$32.4 billion in related proceeds followed by Saudi Arabia with US$25.3 billion. The financial industry was the top-performing industry of 2021 with US$44.3 billion in proceeds. The largest deal of the year was the bond sale from state energy company Qatar Petroleum Corp raising US$12.4 billion in June 2021. Standard Chartered takes the top spot in the MENA Debt capital markets league table in 2021 with US$13.5 billion in related activity or a 13% market share. HSBC come second with an 11% share of the market.<\/p>\n","protected":false},"excerpt":{"rendered":"
Refinitiv, A London Stock Exchange Group Business, released the Middle East and North Africa Investment Banking Report for 2021. According to the report, investment banking fees in the Middle East & North Africa (MENA) totals US$1.4 billion in the full year of 2021, up 3% from the same period last year and the second-highest total […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-17993","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"admin","author_link":"https:\/\/web3unplugged.io\/blog\/author\/admin\/"},"rttpg_comment":0,"rttpg_category":"Uncategorized<\/a>","rttpg_excerpt":"Refinitiv, A London Stock Exchange Group Business, released the Middle East and North Africa Investment Banking Report for 2021. According to the report, investment banking fees in the Middle East & North Africa (MENA) totals US$1.4 billion in the full year of 2021, up 3% from the same period last year and the second-highest total…","_links":{"self":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/17993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/comments?post=17993"}],"version-history":[{"count":1,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/17993\/revisions"}],"predecessor-version":[{"id":17995,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/17993\/revisions\/17995"}],"wp:attachment":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/media?parent=17993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/categories?post=17993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/tags?post=17993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}