The UAE was the most active nation in the Middle East in the first half of 2014 in terms of debt capital market activity in 2014, accounting for 55 per cent of activity, followed by Saudi Arabia with 28 per cent, Thomson Reuters’ quarterly investment banking analysis for the Middle East region showed on Monday.
“Dragged down by a slow first quarter, bonds issued (in the Middle East) during the first half of 2014 fell 16 per cent from the same period last year, to $22 billion. Investment grade corporate debt totalled $16.4 billion and accounted for 90 per cent of the first half total. The United Arab Emirates was the most active nation accounting for 55 per cent of activity, followed by Saudi Arabia with 28 per cent,” said Nadim Najjar, Managing Director, Middle East & North Africa, Thomson Reuters.
International Islamic debt issuance declined 17 per cent year-on-year to reach $14.1 billion, the lowest first half total since 2011.
HSBC took the top spot in the Middle Eastern bond ranking during the first half of 2014 with a 14 per cent share of the market, according to the analysis.
Middle Eastern investment banking fees reached $237.9 million during the second quarter of 2014, a 72 per cent increase from the previous quarter. The value of announced merger and acquisition, M&A (merger and acquisition) transactions with any Middle Eastern involvement reached $14 billion during the second quarter of 2014, 2.5 times the value registered during the previous quarter and the highest quarterly total since 1Q 2011.
Speaking about investment banking fees, Najjar said: “Despite the quarterly uptick, fees earned during the first half of 2014 registered a 19 per cent decline from the same period in 2013 to $375.9 million. Fees from completed M&A transactions totalled $110.9 million during the first six months of 2014, up 3 per cent from the same period in 2013, and accounting for 29 per cent of this year’s overall Middle Eastern fee pool.”
Commenting on M&A transactions, Najjar said: “Value of M&A deals during the first half of 2014 declined 4 per cent from the same period last year to $19.7 billion. Domestic and inter-Middle Eastern M&A declined 49 per cent from the first half of 2013 to $6.9 billion during the first six months of 2014.”
Najjar said: “Inbound M&A also declined, falling 19 per cent to US$1.3 billion. Outbound M&A drove activity, up 83 per cent from this time last year to reach $7.6 billion, the highest first half total since 2011.”