The Clap
The fees for merger and acquisition deals in Saudi Arabia recorded the highest increase in two decades during the past year.
The Deets
The fees collected from successful deals in KSA were around $185.46 million, according to data from the Refinitiv platform of the London Stock Exchange.
International and regional bank fees for arranging merger and acquisition deals amounted to $335.64 million in 2021, accounting for approximately 55.2% of the total, according to Al-Eqtisadiah newspaper.
Fees
The average fee for a single merger or acquisition deal for a Saudi company is $7.13 million, compared to $2.34 million in the Gulf.
The average rate of fees for mergers and acquisitions deals in Saudi Arabia that companies pay to investment banks is more than 200% higher than its Gulf counterparts.
This is due to the magnitude of some of the acquisitions that took place in Saudi Arabia in 2021.
The higher the assets value of the companies, the higher the fees.
Saudi Supremacy
The Saudi and Emirati market alone controls 81% of mergers and acquisitions deals in the region.
Saudi Arabia is the second most active market for mergers and acquisitions in the Gulf, for the third year in a row.
Last year, 26 merger or acquisition deals were launched in Saudi Arabia, constituting approximately 29% of the total number of IPOs in the Gulf region.
