Green concerns continue to spur M&A deals

Green concerns continue to spur M&A deals

According to the latest EY Mena M&A Insights report, the region witnessed 524 deals worth $55.2b during the first nine months of 2022.

Environmental considerations will continue to motivate an increasing number of merger and acquisition deals in the Middle East next year, following a vibrant 2022 that recorded a total deal value of $23.8 billion.

In the first three quarters of 2022, there were 283 deals, an increase of 16 per cent from the same period last year.

Despite unfavorable macroeconomic conditions, 2022 saw M&A activities returning to pre-pandemic levels with ‘green’ M&A deals continuing to surge with dealmakers recognizing the value-creating potential of such transactions. Green deals increased from 5.0 per cent in 2020 to 10.3 per cent in 2021, according to Boston Consulting Group’s M&A report.

According to the latest EY Mena M&A Insights report, the region witnessed 524 deals worth $55.2b during the first nine months of 2022, despite rising inflationary pressures, dampening economic demand, and global market disruptions. Domestic deals were the main driver of activity in the region, contributing 51 per cent and 33 per cent of the total M&A deal volume and value respectively over the nine-month period.

The UAE remained at the forefront of the region, with