M&A in the Middle East (Riyadh, Dubai etc)
I currently work in M&A in London but am thinking of pivoting to the Middle East - My initial thoughts are to pivot to Riyadh for the following reasons:
- Mass investment progammes in the region e.g. Neom, the launch of Riyadh Air, and a whole host of other infrastructure projects;
- Markets like Dubai are saturated and most of the work is in Riyadh right now;
- Huge growth is expected in the region which will translate into career opportunities, personal growth and opportunity;
- Higher earnings potential vs UK which has become a stagnant market and a nation of high taxes.
I appreciate many in this forum may hold preconceived notions about Saudi and the lack of freedom, human rights etc but Saudi is opening up as a country which is guided by Vision 2030.
I have a few questions about the nature of M&A in the region:
(1) Are there pure sell-side M&A services in the region? Or are most of the deals bi-lateral deals which are pre-agreed and typical services would include valuation, modeling and essentially holding a party's hand to completion of the transaction?
(2) Who are the biggest players in M&A in the region?
Based on the most helpful WSO content, the Middle East, particularly Riyadh, is indeed becoming a hotspot for M&A activity, largely due to the reasons you've mentioned like Vision 2030 and the various large-scale investment programs. Here's some insight into your questions:
Sell-side M&A Services in the Region:
Biggest Players in M&A in the Region:
Regarding the growth and opportunities in the region, it's true that the Middle East, and Saudi Arabia in particular, are expected to see significant growth, which could indeed translate into career opportunities and potentially higher earnings, especially considering the tax situation compared to the UK.
If you're considering a move, it might be beneficial to network with professionals already in the region or reach out to recruiters who specialize in the Middle East to get a more nuanced understanding of the market and opportunities available.
Sources: Non US/Europe IB/PE Overview, https://www.wallstreetoasis.com/forum/investing/investing-in-the-middle-east-101?customgpt=1, What is the hype around PJT M&A?, 2014-2019 U.S. Energy M&A League Table, Most Strategically Successful M&A deals of the last few years?
Moelis, HSBC, Rothschild pretty active in that region.
How open are they to European graduates/ people with 2 years of IB under their belt?
interested also
If you genuinely believe Noem is going to be built I have a city in the desert to sell you
I also have some flying taxis available.
I 100% agree with you, there are many fools who keep on bringing neom to the table when I discuss middle east with them. It's never going to be built.
Forget about Neom. What's clear is the massive investment program in that region. Sure, some projects might fail, but many will succeed.
If you've been following news sources beyond propaganda channels like Fox, you'd see there's a significant shift towards the Global South. This trend is likely to dominate future investments in that area.
Complete delusion
I hear that the Turkish REIT space is pretty active doing deals for Hamas.
Thanks for your remark. It unfortunately demonstrates a certain level of ignorance and lacks the necessary perspective to contribute constructively to the discussion.
IDF is no different to Hamas.
That is not quire right. Dubai acts as a hub for both MENA and some Emerging markets. There is a substantial pool of talent who is present already and will not move their families to Riyadh (which is still being developed as we speak, for instance their Financial Center is still under construction, the metro as well).
Dubai benefited from first-movers advantage (as well as the demise of other countries like Lebanon and Bahrain over the past decades), and has established itself as a financial hub well beyond its borders. The knowledge of Sharia (or islamic) finance has enabled it to take on deals from economies such as Pakistan, Malaysia, or Indonesia, which are all growing rapidly.
While Riyadh is an interesting place to be as the country is trying to develop, you would benefit from it just as much in Dubai. Few banks have meaningful offices in Saudi (beyond Lazard), and the 50% local law (i.e., every company needs to have 50% of Saudi employees) makes hiring extremely slow and difficult (as increasing headcount by one will force you to find another local willing to do IB which is not easy at all). Dubai offers the advantage of the DIFC, where you essentially operate in an offshore jurisdiction which shields you from programs like that.
Interested
Dubai > Riyadh, but I definitely understand the competition argument. Another downside about Riyadh I don't see mentioned here is no extra-marrital sex and no alcohol (*unless you are close to the royal family/elite of course).
In terms of banks’ M&A deal flow in KSA (excluding any other MENA country)
Top dogs: HSBC and JPM (neck and neck)
Great M&A deal flow: Rothschild, Morgan Stanley and Goldman Sachs
Rising up the ranks quickly: Citi
Ones to watch out for: Moelis (mostly focused on being an ECM IFA but they have snagged a couple of M&A deals recently; fantastic M&A deal flow in Dubai though), Lazard (same as Moelis excl. the Dubai bit)
Low M&A deal activity: UBS (former CS team)
Not sure if BofA are still active in the KSA market
how is Noor?
Pardon my ignorance, who?
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