A recent report said that the total announced mergers and acquisitions in the Middle East and North Africa in the first quarter of 2022 amounted to $ 21.1 billion, an increase of 11% over the same period last year. Fees for investment banking services in the Middle East and North Africa region amounted to $ 430 million. The report states that capital markets in the Middle East and North Africa raised $ 3.7 billion through 15 offerings, while capital markets in the Middle East and North Africa reached $ 7.9 billion in the first quarter of 2022.
The report pointed out that the targeted mergers and acquisitions in the Middle East and North Africa region had decreased by 29% from last year, as the value of mergers and acquisitions has reached $ 9.2 billion so far this year. Incoming mergers and acquisitions also declined 42% to $ 1.9 billion in 2022, while the volume of outgoing mergers and acquisitions doubled last year to $ 8.8 billion.
The Middle East and North Africa Investment Banking report for the first quarter of 2022 issued by Refinitiv, one of the companies of the London Stock Exchange Group, indicated that the largest targeted M&A transaction in the Middle East and North Africa Africa for this year so far is the sale of MNC Healthcare.The operator of UAE hospitals, worth $ 2.25 billion, to creditors. The healthcare sector was the most active sector in the Middle East and North Africa, with transaction activity reaching $ 2.3 billion, equivalent to a quarter of M&A activity in 2022.
The United Arab Emirates was the most targeted country, with activity reaching $ 4.3 billion, an increase of 5% over the same period last year, and representing almost half of merger and acquisition activity. Transactions worth less than $ 500 million have so far this year amounted to $ 4.6 billion, the strongest start of a year since records began in 1980. Goldman Sachs was at the top of any M&A cyclical table in the Middle East and North Africa with a $ 4.6 billion stake in business relevant or with a market share of 22%. Lazard came in second with a market share of 21%.
investment bank fees
Investment bank fees in the Middle East and North Africa (MENA) region totaled $ 430 million in the first quarter of 2022, an increase of 94% over the same period last year and the highest since records began in 2000. Acquisition fees have risen 569% so far this year to reach $ 184 million. This makes it the strongest start of a year in fees earned through M&A activity since 2008, representing 43% of total investment bank fees. Capital markets had their strongest start to the year in 14 years, generating $ 75.2 million in equity-related fees, 433% more than the same period last year. Mortgage underwriting fees were $ 19.1 million, 79% lower than the same period last year and the slowest start of the year since 2016.
Fees earned on syndicated loans amounted to $ 152.3 million, an increase of 75% over last year and forms 35% of the total fees. Governments and agencies accounted for more than half of the fees earned in the MENA region with 55% of the market, followed by financial institutions with 13%. JPMorgan was first in the investment banking fee schedule in the Middle East and North Africa and earned $ 42.8 million in fees or 10% of the market share. Goldman Sachs and Mollis & Co. occupies second and third with a market share of 7.6% and 6.2% respectively.
MENA Capital Markets raised $ 3.7 billion from 15 listings in the first quarter of 2022. This is the strongest start of the year for capital markets since 2008, which grew 602% over the same period last year. IPOs accounted for most of the total transactions, with 13 of the 15 capital market transactions coming from the IPO. Subsequent expenditures raised $ 72 million in 2022, 42 percent lower than the same period last year. Saudi Arabia was the most active country with revenue of $ 3.5 billion, followed by Egypt with $ 163.3 million. Retail was the most active industry, with revenue of $ 1.3 billion. The largest public offering in the Middle East and North Africa region was the IPO of Nahdi Medical Company, which raised $ 1.3 billion. Riyad Bank ranks first in the capital markets league table in the Middle East and North Africa, with revenue of $ 962 million, or 26% of the market share.
Debt markets in the Middle East and North Africa region reached $ 7.9 billion in the first quarter, 79% lower than a year ago. Investment grade corporate debt recorded a total of $ 7.4 billion, representing 94% of the total corporate debt issuance in the Middle East and North Africa region. The UAE was first in the $ 5.3 billion in related income debt activity, followed by Saudi Arabia with $ 1 billion. The financial sector was the best performing industry in the first quarter with revenue of $ 6.9 billion. The largest bond offering of the year was MD Jeep HRSC Limited, wholly owned by Mubadala Treasury Holding Company, which raised $ 1.4 billion this year. HSBC is number one in the MENA debt capital markets league table with $ 935 million in related activities or a 12% market share. First Abu Dhabi Bank came in second with a market share of 9%.