DOHA: The year 2014 saw an increase in the number of mergers and acquisitions (M&A) in Qatar, and the improvement is likely to be sustained in 2015 despite the global fall in oil prices, according to Leif Zierz, KPMG’s Global Head of Deal Advisory and Venkatesh Krishnaswamy, Partner at KPMG in Qatar.
Qatar saw a bigger percentage increase in M&As than fellow GCC members Kuwait, Saudi Arabia and UAE. From 2013 to 2014 the number of completed inbound transactions in Qatar increased by 63 percent, from eight to 13 deals, compared to 20 percent in Kuwait, a 7 percent decrease in UAE and a 23 percent decrease in Saudi Arabia. Qatar’s number of completed outbound transactions rose by 85 percent in 2014, from 14 to 26 deals, compared to 38 percent in Saudi Arabia, 12 percent in UAE and an 18 percent drop in Kuwait. Mirroring the increase in the number of deals, the total deal value of completed outbound acquisitions in Qatar rose from $1.44bn to $3.98bn from 2013 to 2014.
Government infrastructure spends, buoyed by Qatar’s 2030 Vision and the 2022 FIFA World Cup, are the main drivers for the sustained activity. Krishnaswamy said; “Infrastructure spend has ramped up over recent years in Qatar and, although some re-prioritisation has been necessary due to the fall in oil prices, the government is likely to continue with the scheduled plans. This will have an impact on M&As as Qatari companies charged with delivering large-scale projects seek to enhance their capacity and capability by forming joint ventures with global firms.”
Zierz said: “The increase in transactions in Qatar is representative of the rest of the world, where we are seeing the deals market returning — and it’s safe to say that progress in Qatar has been significant. Although M&A spend in the energy sector is high, it’s clear that, as oil prices remain low, Qatar’s infrastructure spend will have a positive impact on ensuring that the frequency and value of transactions remain high.”
Zierz was in Qatar to address Heads of Deal Advisory from across the Middle East and South Asia (MESA) on how KPMG is transforming its services to help businesses across the region confronted with an increasingly complex business environment. Companies are facing more pressure to deliver better, lasting results for their stakeholders —be it through buying, selling, fixing their businesses, partnering or raising funds.
“As a trusted advisor to more than 80 percent of the Fortune 500, at KPMG, we understand the need to bring together a global network of advisors to provide a seamless, integrated, end-to-end offering that will help clients achieve results both locally and across borders. With our proven track-record, we are looking to the future: one that includes leading edge tools and significant investment to build the new Deal Advisory”, said Zierz.
Over 50 partners and directors from Deal Advisory teams across the MESA attended the one-day conference in Doha. The conference was also addressed by Jamal Fakhro - MESA Advisory Steering Group Chairman and Managing Partner of KPMG in Qatar, and Ramachandran Narayanan - MESA Head of Deal Advisory.
The Peninsula
