Saudi Ministry of Education to showcase innovations at 2025 Geneva International Exhibition    7,523 violators of residency, labor, and border security laws deported in a week    Video contradicts Israeli army account of deadly March 23 strike on Gaza paramedics    Saudi Arabia spends over $241 million to implement de-mining projects in 3 countries    Italy's Meloni government approves controversial security decree expanding police protections and penalties    Egypt submits new Gaza ceasefire and prisoner exchange proposal: Report    'Everything is possible' — Ronaldo focused on titles, not 1,000-goal milestone after Riyadh Derby win    Saudi, US military leaders discuss enhanced defense cooperation in Riyadh    King Salman Global Academy for Arabic Language launches program with Indiana University    Ronaldo brace powers Al Nassr past Al Hilal in Riyadh derby thriller    Ed Sheeran weaves Persian music into new song, Azizam    Al-Jadaan: Crown Prince's directives confirm government's ability to bring back balance to real estate market    Veteran Bollywood actor Manoj Kumar dies at 87    Foreign investors are allowed to engage in real estate business outside Makkah and Madinah Commercial speculation should not be the purpose of real estate transaction    Aubameyang fires Al Qadsiah into King's Cup final with stoppage-time winner over Al Raed    Musk's X is suing India, as Tesla and Starlink plan entry    Tesla sales plunge after backlash against Elon Musk    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Screen time in bed linked to insomnia, study finds    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



GCC ‘transitional' markets have potential for growth
Published in The Saudi Gazette on 15 - 12 - 2010

JEDDAH: Saudi Arabia, UAE, Qatar, Bahrain, Oman and Kuwait, as well as Jordan, were named as "transitional" markets, while Egypt is identified as an "emerging" market for M&A activity in a new study from the Mergers and Acquisitions Research Centre (MARC) at Cass Business School, which is part of City University London.
The study provides the most accurate available picture of the global M&A market, illustrating a country's ability to attract and sustain M&A activity, as well as identifying areas where improvement is needed for development.
The Cass MARC M&A Maturity Index, sponsored by Ernst & Young, Allen & Overy, Credit Suisse and Mergermarket, is the first-of- its-kind and ranks the maturity of 175 countries for M&A activity according to their regulatory, economic, financial, political, technological and socio-cultural environments. The index has a 0.81# correlation with M&A activity; more than double that of the World Bank Group's 'Protecting Investor Index', which has a correlation of just 0.30.
Traditional bases for M&A activity, such as the UK, US and Japan, topped the rankings. However, Asia, including South Korea, Singapore and Hong Kong, also emerges as a favorable region for M&A purposes.
As a region, the Middle East is classified as mid-way in the transitional development stage, on par with other transitional markets such as Latin America, and Central and Eastern Europe.
On the whole, the index recognizes the Middle East is as an increasingly important net investor, however its regional score of 2.8 (index equivalent of approximately 56 percent) indicates that several developments are necessary in order for it to become a "mature" region for inbound and domestic M&A.
While the region presents a relatively stable political environment with a favorable regulatory system, the research shows it lags behind in terms of technological and socio-cultural developments.
According to the study, a country's technological advancement is the most important driver of M&A activity in the "transitional" development stage, explaining 40 percent of the differences in M&A activity between countries. Phil Gandier, head of Transaction Advisory Services at Ernst & Young Middle East and North Africa, said: "It is clear from historical data that with greater M&A market maturity comes greater sustained deal flow, irrespective of economic cycles. Performance of regional M&A markets in 2010 indicates that the appetite for deals is growing. The region is moving up the fast growing 'transitional' category and is poised to escalate deal flows, even though more investment in technology and financial infrastructure is needed. With an average score of 2.8, the Middle East's relatively new M&A markets have undergone rapid development over the past five years as compared to the mature markets who have an M&A history of many decades."
Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, all achieve similar scores on the index, ranging from (2.6-2.9 / approximately 52 percent - 58 percent) and are also classified as 'transitional' markets with growth potential. Considered to be of high interest to foreign companies, these markets are becoming increasingly more active in the global M&A market, but further development is needed to boost technological output and to improve socio-cultural factors in order for these markets to reach "mature" level.
The UAE ranks 29th on the index, with a high overall MARC score of 2.2 (almost 80 percent) which indicates that it is relatively mature for domestic and inbound cross-border M&A purposes. The index classifies the UAE as a 'transitional' market, but predicts that it will reach the 'mature' stage by the time of the index update report expected next year. The UAE's strong position is linked to features such as its high level of political stability and low levels of corruption, with a score of 1.3 for its political environment (close to the "mature" market average of 1.1). However, the country's score of 3.0 for its technological environment is significantly worse than the "transitional" market average, indicating that increased investment and development is necessary in this area before the UAE can be viewed as a "mature" market.
Representing the wider Middle East, Jordan is placed on the cusp of the "transitional" market category with a score of 3.0, while Egypt is classified as an 'emerging' market with an index score of 3.1.
Despite Egypt's ranking placing it close to the 'transitional' market average for regulatory factors, the country's low political score, as well as weakness in technological and socio-cultural factors is holding it back from reaching the transitional development phase.
According to the study, the proportion of M&A deals involving firms from "emerging" market countries has enjoyed steady growth since the 1990s. In 1998, the proportion of "emerging" market deals was just above 10 percent, a figure which had more than doubled to over 25 percent in 2009, making these "emerging" markets important to watch.


Clic here to read the story from its source.