ISSUE 1 | 2022
36
MIDDLE EAST HEAT CHART BY SECTOR
TMT
26 34% 15 19% 14 18%
Business Services Financial Services
Energy, Mining & Utilities
7
9%
LOOKING AHEAD
flour mills for USD 0.4bn. During November 2021, the finance ministry revealed a plan to privatize 160 state- owned entities by 2025 across 16 sectors through assets sales and public private partnerships. The Kingdom intends to raise a total of USD 55bn through the proposed privatizations. IPO PIPELINE The region’s M&A market has witnessed an uptick in initial public offerings to generate enough liquidity for post- pandemic growth. KSA recorded a total of 15 listings – the highest in the region – in the primary and secondary market, with total proceeds of USD 5.1bn. Some of the high-profile listings of the region included the International Company for Water and Power Projects, Adnoc Drilling, Yashat and Fertiglobe, the Clean Energy Company and Saudi Tadawul group. There is a strong IPO pipeline across both KSA and UAE, where a number of companies are in the process of an IPO. Recently, the Dubai government announced a plan to list 10 state-owned enterprises on the local exchange.
Industrials & Chemicals
6 8% 3 4% 3 4%
Real Estate
TMT looks set to continue its growth in deal volume and value, which will be mainly led by government initiatives as part of the transformation drive, along with the continued expansion across online marketplaces and platforms. Activity across non-cyclical industries such as education and healthcare will likely increase through post-pandemic measures. Additionally, as a result of governmental commitments and a general awareness of the need to reduce the environmental footprint and move towards environmentally sustainable initiatives, we expect that ESG-aligned deals will become an increasing focus for investors in the next three to five years.
Pharma, Medical & Biotech
Consumer
2
3%
Leisure TOTAL
1
1%
77
MIDDLE EAST MID-MARKET VOLUMES BY SECTOR
2020
2021
6
11
0
5
1 2 0
3
9
MUHAMMAD ASSAD BUTT SENIOR DIRECTOR HEAD OF CORPORATE FINANCE AT BDO SAUDI ARABIA
9
9
m.butt@bdoalamri.com
10
8
1
8
5
7
5
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
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