Middle East : A Prime Hub for Global Investors Amidst Resilient Markets

UAE, 26 March, 2024 : The Middle East remains a prime hub for global investors seeking expansion, according to a report by London-based specialist insurance and reinsurance broker BMS. The region's resilience to macroeconomic factors, especially compared to Western markets, continues to attract international interest.

In 2024, key state investors are expected to maintain a cautious yet steady approach to domestic and outbound investments, the report noted.

Warranty and indemnity (W&I) insurance policies are gaining traction in the Middle East as deal enablers rather than just insurance covers. International investors, often co-funding investments with sovereign wealth funds, have been instrumental in introducing insurance during early transaction stages.

Unlike before, when only a few insurers engaged in Middle East deals, over a dozen insurers are now actively participating, with some even establishing local offices. Those partnering with local counsel and leveraging experienced advisors are benefiting from diversified portfolios, according to BMS.

Despite a downturn in merger and acquisition (M&A) activity, sectors like renewables & energy, financial services, and retail & consumer have shown resilience, witnessing higher deal volumes in 2023 compared to 2022.

Although Asia, the Middle East, and India remained stable markets, the latter two saw a decrease in overall deal numbers. However, an increase in $1 billion-plus enterprise value deals kept transaction values close to 2022 levels.

Overall, inquiries surged by 21% year-on-year in 2023, indicating a strong transaction appetite heading into 2024, the report highlighted.

Source : www.zawya.com