LSEG Middle East & Africa Investment Banking review for first half 2024

INVESTMENT BANKING FEES

• An estimated US$724.5 million worth of investment banking fees were generated in the Middle East & North Africa during the first six months of 2024, 23% more than the value recorded a year ago and the third highest first half total in the region since our records began in 2000. 
• Debt capital markets underwriting fees increased 81% to US$230.9 million, the highest first half debt capital markets fee total in the region since our records began in 2000.
• Equity capital markets underwriting fees increased 62% year-on-year to US$206.7 million.
• Advisory fees earned from completed M&A transactions totalled US$130.7 million, a 14% increase from previous year levels.
• Syndicated lending fees declined 28% to a four-year low of US$156.4 million.
• Forty-seven percent of all MENA fees were generated in Saudi Arabia in the first half of 2024, followed by the United Arab Emirates (36%).
• HSBC earned the most investment banking fees in the region during the first half of 2024, a total of US$60.3 million or an 8.3% share of the total fee pool.

MERGERS & ACQUISITIONS

• The value of announced M&A transactions with any Middle East or North African involvement reached US$46.6 billion during the first six months of 2024, up 48% compared to year ago levels.  The number of deals announced in the region declined 5% from last year at this time.
• Deals involving a MENA target totalled US$17.6 billion during the first half of 2024, up 22% from first half 2023 levels as inbound deals, involving a non-MENA acquiror, increased 55% in value to US$11.2 billion.  Domestic M&A in the region declined 12% to seven-year low of US$6.3 billion.
• MENA outbound M&A totalled US$28.6 billion, a 77% increase from year ago levels and the highest first half total since 2007, boosted by the announcement that Abu Dhabi National Oil Company (Adnoc) had entered into negotiations with German materials company Covestro on a potential takeover worth US$14.8 billion.  It was the largest deal with MENA involvement during the first half of 2024 and the 9^th largest globally. 
• The financial sector was most active, accounting for 36% of MENA target M&A during the first half of 2024, followed by materials and industrials.  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 the first half of 2024 for their advisory work on deals worth a combined US$28.7 billion.

EQUITY CAPITAL MARKETS

• MENA equity and equity-related issuance totalled US$16.5 billion during the first half of 2024, almost three-times 2023 levels and the highest first half total in the region since 2008.  The number of issues increased 19% from H1 2023.
• Initial public offerings accounted for 22% of activity, while follow-on issuance accounted for 78%.
• A total of 23 initial public offerings were recorded during the first half of 2024, the highest first half total since 2008.  They raised a combined US$3.6 billion, 32% less than last year.  Saudi healthcare provider, Dr. Soliman Abdul Kader Fakeeh Hospital Co, raised US$763.5 million in its Tadawul stock market debut in May, the largest IPO in the region during the first half of 2024.
• Proceeds raised from follow-on offerings totalled US$13.0 billion, an all-time first half high in the region following an US$11.2 billion stock sale by Saudi Arabia’s Aramco in June.
• The energy & power sector was most active with issuers raising US$12.3 billion, accounting for 74% of total equity capital raisings in the region in the first half of 2024.  Consumer Products & Services followed, accounting for 8%.
• EFG Hermes took first place in the MENA ECM underwriting league table during the first half of 2024, with a 10.9% market share.

DEBT CAPITAL MARKETS

• MENA bond issuance totalled US$73.4 billion during the first half of 2024, 59% more than the value recorded last year at this time and the highest first half total since our records began in 1980.  The number of issues increased 63% over the same period. 
• Saudi Arabia was the most active issuer nation during the first half of 2024 accounting for 49% of total bond proceeds, followed by the United Arab Emirates (29%), and Qatar (10%).
• Financial issuers accounted for 56% of proceeds raised during the first half of 2024, while Government & Agencies accounted for 36%.
• Islamic bonds in the region raised US$27.6 billion during the first half of 2024, a first half record.  Sukuk account for 38% of total bond proceeds raised in the region, compared to 40% last year at this time.
• Standard Chartered took the top spot in the MENA bond bookrunner ranking during the first half of 2024 with US$8.2 billion of related proceeds, or an 11% market share.  Standard Chartered also took first place in the MENA Islamic bonds league table.