DUBAI: Mergers and acquisitions (M&A) activity in the Middle East fell sharply in the second quarter, underlining the difficult environment investment banks face in the region, data from Thomson Reuters showed.
M&A volumes slumped 70 percent in the second-quarter compared to the previous quarter, but investment banking and adviser fees for the first half of the year rose 19 percent to $429 million, according to Thomson Reuters Middle East Investment Banking League Tables released on Wednesday.
Credit Suisse dominates the M&A fee league tables for the first half ahead of Morgan Stanley and JPMorgan. The Swiss investment bank advised Qatar’s fund in its 1.5 billion pound acquisition of London department store Harrods.
Debt issuance in the first half of the year stood at $10.9 billion, down 32 percent over the year-ago period. HSBC snagged the top spot in the Middle Eastern Debt Capital Markets (DCM) fee rankings.
Syndicated loans saw a substantial drop in the second-quarter with volumes slumping to $3.3 billion, compared to $9 billion in the first quarter. Standard Chartered earned the highest fees in the segment during the first half of the year.
Equity issuances witnessed a boost in the first half of the year, gaining 64 percent over the year-ago period to $5.6 billion. The financial sector was the main driver, contributing 57 percent of activity with the Central Bank of Libya dominating the fee tables.
Local investment banks are largely absent in the league tables.
In June, an AT Kearney report said the investment banking industry in the Gulf Arab region has been hit due to low demand for services and the lack of diversification from away private equity and principal investments which suffered during the crisis.
Thomson Reuters Investment Banking League Tables’ rankings of banks and advisors operating in the Middle East are based on deal activity and fees.