Middle East presents favourable climate for dealmaking in 2024: PwC

Doha, Qatar: According to the 2024 TransAct report by PwC Middle East, a heightened on ground interest and an increased appetite will drive deal activ...

Doha, Qatar: According to the 2024 TransAct report by PwC Middle East, a heightened on-ground interest and an increased appetite will drive deal activity into a new era of growth and opportunity, across diversified areas of investment in the region.

Titled “Strategic growth beyond oil: Economic diversification and decarbonisation expected to boost deal making in the region’’, the latest TransAct report highlights that despite the global macroeconomic and financial headwinds experienced in 2023, the Middle East’s deal market remains promising.

Despite the slower growth rate experienced by the global economy, the Middle East has remained resilient, supported by solid economic fundamentals and supportive government policies. This resilience has boosted stability and investor confidence in the region, leading to a relatively active deal market compared to other regions that have been more susceptible to higher interest rates and recessionary fears.

Based on the report, the market is buoyed by the region’s solid economic fundamentals and supportive economic policies, with member nations undergoing digital transformation, strengthening their non-oil sectors and driving energy transition initiatives.

As businesses aim to gain a competitive edge, PwC Middle East experts suggest that they can leverage transactions, such as M&A, divestments, joint ventures, or refinancing to accelerate their progress and acquire new capabilities or strengthen their positioning in the market. Despite notable declines in comparison to 2022, it is anticipated that the deal market will remain active and grow in many sectors in 2024 as governments continue to advance their strategic agendas and diversify their economies.