Last Updated: Sun Oct 17, 2010 00:29 am (KSA) 21:29 pm (GMT)

Mideast investment banking rebounds in Q1

The Middle East investment banking industry seems to have started the year in a strong position (File)
The Middle East investment banking industry seems to have started the year in a strong position (File)

Investment banking in the Middle East experienced a rebound in activity in the first quarter, indicating a return to confidence in the market, according to an analysis by Thomson Reuters.

Mergers and acquisitions volumes tripled during the first quarter with $10.7 billion in announced deals, making it the busiest quarter for M&A in the region since 2007, according to Thomson Reuters Middle East Investment Banking League Tables.

 After a very tough 2009, the Middle East investment banking industry seems to have started the year in a strong position with the number of deals announced showing real sign of confidence returning to the market 
Basil Moftah, Thomson Reuters Middle East & Africa.

Real estate and industrial sector deals dominated the landscape, with the United Arab Emirates driving most of that activity. JP Morgan emerged as the leader in M&A fee ranking, which accounted for 49 percent of total fee activity.

"After a very tough 2009, the Middle East investment banking industry seems to have started the year in a strong position with the number of deals announced showing real sign of confidence returning to the market," said Basil Moftah, managing director of Thomson Reuters Middle East & Africa.

Debt issuances, which faced a rough period in 2009 as capital dried up, surged seven-fold in one year to $4.5 billion. Deutsche Bank snagged the top spot in Middle Eastern DCM fee activity.

Equity issuances jumped 67 percent to $3.7 billion, led by financials, telecom and real estate deals. Equity capital markets fees made up 28 percent of total fees, with the Central Bank of Libya taking the lead for ECM ranking.

The financial sector drove strength in syndicated loans for the region, followed by the telecommunications sector. National Bank of Abu Dhabi Santander, HSBC and Mitsubishi UFJ Financial Group tied for first place for first-quarter lending with $895.9 million.

Syndicated loan fees made up 12 percent of total fees, with Standard Chartered topping the fee ranking for syndicated loans.

Investment banking and adviser fees climbed 11 percent to reach $175.9 million.

Thomson Reuters Investment Banking League Tables' rankings of banks and advisors operating in the Middle East are based on deal activity and fees.

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