Consultancy firm EY said in its latest report that the value of merger and acquisition (M&A) deals with disclosed value in the MENA region surged by 105% YoY to USD 10 bn in Q3 of 2018 from USD 4.9 bn in the year-ago period, despite the number of deals has dropped 3% from 110 deals in Q3 2017 to 107 deals this year, Invest-Gate reports.

Deal value remained consistent YoY, but volume declined by 3% to 107 deals compared with 110 deals in Q3 2017. The GCC deals represented 79% – or USD 7.9 bn – of the total MENA deal value and 73% of deal volume, according to the EY Q3 MENA M&A report.

Meanwhile, cross-border (inbound and outbound) activity remained on par with Q3 2017, with deal value rising fivefold to USD 9 bn in Q3 2018 versus USD 1.5 bn in the past year.

MENA Transaction Advisory Services Leader Phil Gandier said, “Companies in MENA are still following a cautious approach to dealmaking due to a modest growth in revenues and a drop in liquidity position, driven largely by ongoing regional market uncertainties, similar to last year.”

The top five target sectors in MENA by deal value were oil and gas (USD 1.4 bn), chemicals (USD 500 mn), diversified industrial products (USD 300 mn), real estate (USD 300 mn), and consumer products (USD 300 mn), according to the report.

Prominent MENA players involved in more than two acquisitions include Saudi Arabia’s Public Investment Fund, Investcorp, Investment Corporation of Dubai, Amanat Holdings, and Dnata, the report said.