Investment banking fees in the Middle East & North Africa (MENA) totalled $1.4 billion in 2021, up 3 percent from the previous year and the second-highest total on record, according to new research.
The report by Refinitiv, a London-listed company, said MENA equity capital markets (ECM) raised $14.5 billion from 42 offerings in 2021, a 193 percent increase in proceeds from last year and a 13-year high in the number of deals.
Debt capital markets (DCM) in the MENA region totalled $107.5 billion from 152 issuances last year, down 12 percent in proceeds compared to the previous year, it added.
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 $109 billion in proceeds, up 57 percent from last year and the third $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.”
Investment banking fees in the MENA rose to $1.4 billion but completed mergers and acquisition fees declined 26 percent to $317.2 million, making up 22 percent of the total investment banking fee pool.
Equity capital markets recorded their strongest year in 13 years, producing $334.4 million in fees, a 251 percent increase from last year. Equity underwriting fees made up 23 percent of the total fee pool, the highest proportion since 2008.
Bond underwriting fees accounted for $271.6 million, down 7 percent but still accounted for a fifth of the total MENA fee pool.
Fees earned from syndicated lending totalled $525 million, down 12 percent from 2020 and accounted for 36 percent of the total fee pool.
JP Morgan rose to the top spot in the region, earning $143.7 million in fees or a 9.9 percent share of the market, followed by HSBC and Morgan Stanley.
Announced to the Refinitiv research, M&A activity with any MENA involvement totalled $109.1 billion throughout 2021, a 57 percent increase, with 1,141 deals recorded, a 40 percent increase from 2020 and the highest annual total since records began in 1980.
M&A involving a MENA target reached $72.9 billion, making it the second-highest total since records began and the strongest year of the number of deals with 863 deals.
The largest M&A deal in the MENA region of 2021 was Aramco Gas Pipelines Co in a deal worth $15.5 billion lease and leaseback agreement for its gas pipeline network.
Saudi Arabia was the most targeted nation with $27.3 billion in M&A activity, equivalent to half of target M&A recorded in the region.
The UAE was the top nation for DCM activity with $32.4 billion in related proceeds followed by Saudi Arabia with $25.3 billion.
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