Middle East Deal Study | Sector Spotlight: Energy
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Our Middle East Deal Study 2019 shows that
the M&A activity in the Energy sector is on the rise.
It has gone up from 3% in the 2015-17 period
to 11% in the last two years.
The same is the case with the joint venture activity
witnessed by us in this time period
which has gone up from 6% to 12%.
This shows that the Energy sector remains critical to the regional economy
and that's despite fruitful diversification efforts
by the governments in the region.
It is also because there is an increased focus
in the region on creating efficiencies and driving innovation
in the Energy sector.
We could also attribute this to a focus on renewable energy
projects in the region.
We are also witnessing that a lot of our clients
are looking at opportunities, in particular, investment opportunities
on the African continent as well as South Asia,
from their Dubai or Middle East bases.
This is likely to take the form of joint ventures in these jurisdictions.
We see, for example, BP is continuing to expand
and progress ahead with its trademark,
Khazzan Gas Project, in Oman.
We see Saudi Arabian investors showing interest in setting up
a refinery in Pakistan
and this all is likely to result in increased activity
in both M&A and joint venture space
in relation to the Energy sector in the region.