|
 |
News |
 |
|
| |
Email this article |
 Printer Friendly Version
|
| |
UAE SWFs dominate global M&A in 2009 |
| |
08.17.2009 |
| |
|
| |
| |
UAE sovereign wealth funds dominated the M&A market this year by accounting for more than 50 per cent of the total value of deals this year, research reveals.
Globally, SWFs have entered into deals worth $17.5 billion (Dh64.2bn) in 2009 so far (until August 7, 2009), and SWFs from the UAE dominate the listings, accounting for more than $9.3bn, or 53.4 per cent, of the total deals, according to data compiled
by M&A intelligence provider Merger?market. The UAE's Inter?national Petroleum Invest?ment Company was responsible for $6.5bn worth of deals, while Aabar Investment
and Mubadala Development
were responsible for the remainder.
The dominance of UAE-based SWFs is in fact greater as some of the recent deals stuck by Aabar Investment
, including a €100m (Dh521m) contribution to ABAG Aktiengesellschaft, a joint venture with the Austria-based Berndorf, are not strictly viewed as M&A by Mergermarket, and are therefore not part of the numbers.
Despite losing a substantial proportion of their wealth to the sharp declines witnessed in markets across the world since the onset of the global recession, analysts believe the region's SWFs have performed relatively better than their global counterparts. "It is thought that SWFs in GCC countries have fared rather better," Chris Ward, Global Head of Corporate Finance and CEO of Deloitte Corporate Finance in the Middle East, told Emirates Business.
"Nevertheless, the impact has been a significant reduction in their investment activity, and very few [until recently] investments made overseas," he added.
However, despite the equity portfolio of SWFs declining by up to 45 per cent by some estimates, the overall decline in their assets is much smaller. "SWF assets might have declined by between 15 and 20 per cent at their worst point," said Mailesh Shah, Head of Investment Consulting Practice for Mena and a Principal at Mercer.
"SWFs are very important to the GCC's economic well-being, not only in the short term but also to broaden out the economies in the long term,"
Shah added
"This crisis is unprecedented in that it has affected the fundamentals and impacted all asset and investment classes. However, a diversified portfolio acts as a counter-balance against a decline in one or more asset classes," he said.
|
| |
Source:www.zawya.com |
news |
| |
Email this article | Printer Friendly Version |
|
 |
| |
|
|
|
| Current Events |
 |
|
| DubaiGetaway |
 |
|
| Featured Links |
| |
|
|
|
