Qatar on buying spree with highest M&A purchases
Date
7/18/2016 3:22:15 AM
By Satish Kanady
DOHA: Qatar continued on the buying spree with the region";s highest M & A purchases abroad in 2015. The country topped the chart in terms of net M & A purchase abroad with the highest value in cross border purchase transactions recording at $8.8bn, followed by UAE at $5.2bn last year.
Total cross-border M & A transactions in the GCC saw a huge jump in 2015 with net sale transactions pegged at $2.2bn, a more than three-fold increase from $676m in 2014, whereas value of net cross-border purchase transactions increased by almost 60 percent to $16.4bn in 2015 as compared to $10.6bn in 2014, 'World Investment Report 2016”, released by KAMCO Research said.
In terms of Greenfield foreign direct investment (FDI) UAE continued to remain the most vibrant in the region. Total value of Greenfield FDI projects abroad by GCC countries doubled to $44.8bn during 2015 as compared to $24.1bn during 2014. The growth as primarily on the back of Saudi Arabia which added almost $12bn in new Greenfield FDI projects outside the country with a total value of $13.5bn. Nevertheless, UAE continued to top the chart with a total value of $22.1bn followed by Saudi Arabia. Greenfield projects announced within the GCC in 2015 with world as the investor was topped by Saudi Arabia with a total value of $9.9bn, almost at the same level as last year, closely followed by UAE that saw a decline of $4bn to reach $9.0bn
Amid volatile flow of funds in and out of the GCC, the share of the region in the total global FDI flows has remained minimal. FDI inflows in the GCC reached a new low in 2015, as the slowdown in economic growth rate due to the fall in oil prices affected investor perception of the region.
In terms of the individual country contribution, the absolute growth in FDI inflows was led by UAE which recorded an increase of $153m in total inflows closely followed by Saudi Arabia with an increase of $129m. Qatar and Oman also recorded small increase in inflows. Bahrain recorded net outflow of FDI reflecting major foreign divestment, whereas FDI in Kuwait saw a steep decline of $660m in 2015. UAE topped the list in terms of FDI outflows from the GCC in 2015 recording a total flow of $9.2bn followed by Saudi Arabia and Kuwait with outflows of $5.5bn and 5.4bn, respectively.
In terms of FDI, inward stock in the GCC, Saudi Arabia ranked top with a total stock of $224bn,followed by UAE at $111.1bn. On the other hand, UAE is a major investor abroad with the highest FDI outward stock of $87bn, followed by Saudi Arabia at $63.3bn.
The Peninsula