MENA IB Fees Valued at $1.5 Billion in 2024
- Business Banking Companies Regional
Global Business Magazine- 5 minutes read
An estimated $1.5 billion worth of investment banking fees were generated in the Middle East & North Africa (MENA) region during 2024, 24% more than the value recorded in 2023, according to Deals Intelligence, which is part of LSEG’s Data & Analytics division.
This was also the third highest annual total in the region since 2000, Deal Intelligence said in its MENA Investment Banking Review for the full year 2024.
While the debt capital markets underwriting fees increased 59% to $389.5 million, an all-time high, the equity capital markets underwriting fees increased 54% year-on-year to $403.8 million, the report said.
Likewise, advisory fees earned from completed M&A transactions totalled $295.9 million in 2024, a 3% increase from year ago levels buy syndicated lending fees were flat compared with 2023, at $449 million.
The report further said that 40% of all MENA fees were generated in the UAE followed by Saudi Arabia (38%) last year.
Among the banks, HSBC earned the most investment banking fees in the region during 2024, a total of $107.3 million or a 7% share of the total fee pool.
M&A Transactions
The value of announced M&A transactions with any Middle East or North African (MENA) involvement reached $75 billion in 2024, down 4% compared to year ago levels and the lowest annual total since 2020. The number of deals announced in the region increased 1% from 2023.
Deals involving a MENA target totalled $30.3 billion during 2024, down 8% from 2023 levels as domestic deals in the region declined 31% to a seven-year low of $16.1 billion. Inbound deals, involving a non-MENA acquiror, increased 49% in value to a three-year high of $14.2 billion, the report said.
MENA outbound M&A totalled $40.2 billion in 2024, a 3% decline from year ago levels and the largest deal with MENA involvement during 2024 was Abu Dhabi National Oil Company’s (ADNOC) $17.6 billion takeover offer for German chemicals company Covestro.
Industrials was the most active sector, accounting for 27% of MENA target M&A during 2024, followed by materials and the financial sector. The United Arab Emirates was the most targeted nation, followed by Saudi Arabia.
Morgan Stanley took first place in the any MENA involvement announced M&A financial advisor league table during 2024, for their advisory work on deals worth a combined $31.8 billion.
MENA equity and equity-related issuance totalled US$30.0 billion during 2024, a 126% increase from year ago levels and the highest annual total in the region since 2019. The number of issues increased 16% from year ago levels.
Initial Public Offerings (IPOs) accounted for 41% of activity, while follow-on issuance accounted for 59%. A total of 54 IPOs were recorded during 2024, six more than in 2023 and the highest annual total since 2007.
These IPOs raised a combined $12.2 billion, a 12% increase from last year. Food delivery firm Talabat raised $2 billion in its stock market debut in Dubai in November, the largest IPO in the region during 2024.
Proceeds raised from follow-on offerings reached a 16-year high of $17.9 billion, largely boosted by a US$12.3 billion stock sale by Saudi Arabia’s Aramco in June.
The energy & power sector was most active with issuers raising a combined $16.1 billion, accounting for 54% of total equity capital raisings in the region and retail followed, accounting for 16% during 2024.
