Latest news with #EYMENA
Biz Bahrain
08-07-2025
- Business
- Biz Bahrain
GCC wealth management landscape is shifting to address investor concerns around agility and technology
According to the 2025 EY Global Wealth Research Report, the GCC wealth management landscape is undergoing a profound transformation, shaped by shifting client expectations and technological disruption. Investor behavior in the region reflects greater engagement with advisors, increased openness to switching providers, and heightened expectations around investment performance and product access. Nearly 55% of GCC clients reported arranging more advisor meetings in response to market volatility, well above the global average. The importance of understanding how financial activities impact the client's financial health is nearly as important as portfolio allocation, indicating that investors now expect advisors to deliver holistic wealth management. At the same time, multihoming is rising rapidly, with 36% of investors in the region expecting to increase their number of wealth management relationships, and nearly 50% expressing interest in working with more providers, pointing to a growing fragmentation of trust and loyalty. In parallel, clients are showing a strong preference for alternative investments, with 69% already allocating assets to these vehicles. Mayur Pau, EY MENA Financial Services Leader, says: 'The EY Global Wealth Research Report shows that longstanding assumptions in wealth management are being disrupted by accelerating economic shifts and rapid technological change. This is heightening the urgency for wealth managers to offer more clarity, agility, and proactive guidance in an environment defined by uncertainty. Clients also expect greater depth and breadth of the product shelf than ever. Wealth management firms must be prepared to understand the drivers of satisfaction and ensure they are optimized independently of prevailing market conditions.' GCC investors feel satisfied with the services provided by their primary wealth manager across all key dimensions, but they still see the task of managing their wealth becoming more intricate. Only 57% of the region's respondents have reached the 'high bar' of being well-prepared to meet their financial goals, which must be the target for all advised clients. Rising expectations for AI integration In the GCC, 13% of clients express a high level of trust in artificial intelligence (AI), showcasing their openness to AI-powered solutions. This figure is notably higher than in more mature markets, like North America (6%) and Europe (9%), and it is also competitive with Latin America (16%) and Asia Pacific (15%). Wealth managers in the region must leverage this trust to meet the evolving expectations of their tech-savvy client base. The GCC is among the most enthusiastic regions globally when it comes to AI, with 71% of investors expecting wealth managers to incorporate AI into their product offerings. This number is even higher among mass affluents. On the other hand, clients are increasingly aware of the potential risks associated with AI, including data misuse and the accuracy of AI-driven insights. To build trust, wealth managers must actively educate clients about AI's capabilities and the safeguards in place to protect their information. This includes communicating the ethical principles guiding AI use, ensuring compliance with regulations and demonstrating how AI can enhance – rather than replace – the human element of wealth management. Clients seek less common fee arrangements GCC investors are more cautious and proactive, emphasizing transparency, cost clarity and tailored offerings. While percentage-based fees on assets under management (AUM) are unpopular globally (15%), they remain relatively more accepted in the GCC (27%), with performance-based fees, fixed fees, subscription fees and combinations of fee structures losing popularity. These findings show that industry pricing mechanisms are out of step with client preferences, revealing an underlying opportunity for pricing optimization. Concerns around hidden costs have decreased in the last few years, with firms making progress in improving fee transparency. Over 90% of clients in the region strongly believe they are being charged fairly for services rendered. GCC clients cite better investment performance and returns (55%) and access to a wider array of investment products and services (53%) as their top two drivers to switch wealth management providers. Only 26% would opt for a different provider due to seeking lower fees for services. Hamdan Khan, Partner, EY MENA Wealth and Asset Management, says: 'With investors increasingly expecting AI-powered solutions and holistic wealth management approaches, firms must act swiftly to align their strategies with these evolving demands. By investing in AI technologies, enhancing client engagement and prioritizing ethical data practices, wealth managers can position themselves for success in a rapidly changing landscape. The future of wealth management is not just about managing assets; it's about building relationships, fostering trust and leveraging technology to create exceptional client experiences.' The biennial EY Global Wealth Research Report aims to help wealth managers align strategic priorities with deep, data-driven insights into client behavior, preferences and expectations. It also identifies clear trends in managing provider relationships, reallocating capital, and planning for intergenerational wealth transfer. For more information on the report and its findings, please visit: management-research
Zawya
05-03-2025
- Business
- Zawya
MENA sees increased M&A activity in 2024 with 701 deals totaling $92.3bln
Doha: According to the latest EY MENA M&A Insights 2024 report, the MENA region recorded a 3% rise in merger and acquisition (M&A) activity with 701 deals in 2024, compared to 679 deals in 2023. The total deal value in 2024 reached $92.3bn, indicating a 7% increase from the previous year. The GCC region accounted for the majority of dealswith580, amounting to $90bn. This expansion was largely fueled by substantial reforms in the capital markets, strategic policy changes and enhanced efforts to attract foreign investments. Cross-border deals were the major driver of M&A deals in the MENA region, accounting for 52%of the volume and 74% of the value. Brad Watson, EY MENA Strategy and Transactions Leader, says: 'In 2024, the MENA region witnessed positive developments in the M&A space with a y-o-y increase in activity as well as overall deal value. With companies actively seeking opportunities to grow and diversify their operations, cross-border deals were the major driver in terms of volume and value. The top five subsectors were insurance, asset management, real estate and hospitality, power and utilities, and technology – indicating a real interest in the innovative solutions that the MENA region can provide. In addition, there is a focus on strengthening regional relationships with Asian and European countries, enabled MENA countries to gain access to larger and growing markets.' Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, says: 'In 2024, technology remained the most attractive sector for investors, accounting for 23% of total inbound and domestic deal volume. We're living through a productivity renaissance fueled by technology and AI, which will manifest in capital allocation and M&A.' 'The deal book (across sectors) for the fiscal year 2025 remains extremely strong and we expect to see continued portfolio momentum and interest in MENA-based assets.' Sovereign wealth funds (SWFs), such as the Abu Dhabi Investment Authority (ADIA) and Mubadala from the United Arab Emirates (UAE), as well as the Public Investment Fund (PIF) from the Kingdom of Saudi Arabia (KSA), continued to lead the deal activity in the region. Outbound deals contributed the largest share of M&A transaction value in 2024 accounting for61% of the total consolidated deal value, with 199transactions amounting to $ MENA region continues to be one of the most attractive destinations for foreign direct investors. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
27-02-2025
- Business
- Arab News
M&A deals in MENA up 7% as Saudi Arabia, UAE lead the way: EY
RIYADH: Saudi Arabia and the UAE helped drive merger and acquisition activities in 2024 up 7 percent across the Middle East and North Africa to reach $92.3 billion, according to an analysis. In its latest report, professional services network firm EY revealed that the MENA region witnessed 701 deals over the period, a 3 percent rise from the 679 deals seen in 2023. EY added that the UAE and Saudi Arabia together reported 318 deals in 2024 valued at $29.6 billion. These two nations were also among the top MENA bidders indicating their active participation in the merger and acquisition landscape. According to the analysis, this expansion was driven mainly by reforms in capital markets across the region, as well as strategic policy changes and strengthened efforts to attract international investments. Earlier this month, banking firm Morgan Stanley also echoed similar views and said that the MENA region will witness a significant 'structural upswing' in transaction volume and value size in 2025 propelled by policy shifts and regulatory reforms. Commenting on the latest report, strategy and transactions leader at EY MENA Brad Watson said: 'In 2024, the MENA region witnessed positive developments in the M&A space with a year on year increase in activity as well as overall deal value. With companies actively seeking opportunities to grow and diversify their operations, cross-border deals were the major driver in terms of volume and value.' EY said that the Gulf Cooperation Council region accounted for the majority of deals within the MENA region at 580, accounting for 52 percent of the volume and 74 percent of the value. The report added that the UAE reported the largest M&A deal in 2024, with the acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment for $12.4 billion. The second-biggest deal was made by Saudi Aramco, with the energy giant acquiring a 22.5 percent stake in Rabigh Refining and Petrochemical Co. from Tokyo-based Sumitomo Chemical for $8.9 billion. The third-largest deal was the acquisition of a 60 percent stake in the Chinese shopping mall company Zhuhai Wanda Commercial Management Group by PAG, Mubadala and Abu Dhabi Investment Authority for $8.3 billion. EY revealed that outbound deals contributed to the largest share of M&A transaction value in 2024, accounting for 61 percent of the total consolidated deal value, with 199 transactions amounting to $56.6 billion. In terms of sectors, technology and consumer products were the leading contributors to overall deal volume, each experiencing a 10 percent year-on-year increase. The US was the largest acquiring country outside of the region by volume and value, with 48 transactions totaling $4.6billion. 'The top five subsectors in the M&A landscape were insurance, asset management, real estate and hospitality, power and utilities, and technology — indicating a real interest in the innovative solutions that the MENA region can provide,' said Watson. He added: 'In addition, there is a focus on strengthening regional relationships with Asian and European countries, enabling MENA countries to gain access to larger and growing markets.' According to the report, domestic M&As contributed to 48 percent of the total deal volume in 2024, with 339 deals valued at $24.4 billion. The technology and consumer products sectors together contributed 35 percent of the deal volume, driven by accelerated digital transformation in the region. 'In 2024, technology remained the most attractive sector for investors, accounting for 23 percent of total inbound and domestic deal volume. We're living through a productivity renaissance fueled by technology and AI, which will manifest in capital allocation and M&A,' said Anil Menon, head of M&A and equity capital markets leaders at EY MENA. The oil and gas sector topped the sectors in domestic M&A values at $9 billion, largely due to Saudi Aramco's $8.9 billion acquisition of a stake in Rabigh Refining and Petrochemical Co.
Zawya
11-02-2025
- Business
- Zawya
EY seminar reveals innovative strategies that help Bahrain's businesses optimize their tax position
The event saw EY's tax experts review the main developments in Bahrain's and regional tax systems over the past year Manama, Bahrain – EY has hosted its Bahrain Annual Tax Seminar 2025 in Manama with the aim of guiding businesses in navigating the evolving tax landscape in the country and beyond. The latest edition of the event provided an overview of the major developments in the tax system that have taken place in Bahrain and regionally over the last 12 months. The seminar saw the participation of over 250 C-suite executives and finance professionals from Bahrain-based companies. The event leveraged the knowledge and practical experience of EY's senior tax professionals to offer comprehensive insights that will help the participants achieve an optimal tax position and adapt their strategy in response to market trends. The agenda covered all aspects of the taxes that are currently imposed in Bahrain in line with domestic laws. Among the key changes over the past year was the introduction of the domestic minimum top-up tax (DMTT) in line with the country's commitment to compliance with Base Erosion and Profit Shifting (BEPS) Pillar Two. Additionally, there have been numerous updates to the value-added tax (VAT) procedures in diverse sectors. EY's subject matter experts shared their experience with DMTT and discussed the potential future introduction of a broader domestic corporate tax, similar to those found in neighboring GCC countries. The speakers also offered detailed updates on international tax developments, which affect Bahraini businesses operating in other jurisdictions while contributing to shaping the local tax environment, with a focus on the regional implementation of e-invoicing. The session explored the various models being introduced and the technology options available to adopt tax governance, helping businesses prepare for upcoming digital tax compliance. The seminar provided participants with an ideal platform for networking and the exchange of experience and best practices in the field of taxation. Ahmed Al-Esry, EY MENA Tax Leader, says: We are committed to helping our clients navigate Bahrain's evolving tax landscape by providing expert insights and tailored solutions to ensure compliance. Our Bahrain Annual Tax Seminar assists businesses in aligning their financial reporting with local regulations and understanding related tax impacts while sharing updates on important regulatory developments. The seminar also offers tax insights for specific industries, highlighting each sector unique challenges and opportunities, while keeping multinational enterprises informed about international tax developments." Ali Al-Mahroos, EY Bahrain Tax Leader, says: 'Bahrain's tax landscape continues to evolve, reflecting the Kingdom's commitment to economic diversification and fiscal sustainability. Over the past 12 months, we have witnessed key developments in both direct and indirect taxation, including the introduction of DMTT as well as refinements in VAT regulations and compliance measures. These advancements enhance Bahrain's business environment by fostering transparency, aligning with global tax trends and attracting foreign investment. 'On a regional level, the implementation of e-invoicing is a pivotal step in the transformation of the GCC tax landscape, which is set to revolutionize tax compliance for both businesses and the government. By digitizing transactions, e-invoicing improves efficiency, reduces tax evasion and enhances real-time reporting. Should Bahrain introduce e-invoicing, it would ultimately strengthen the country's position as a competitive and forward-thinking economic hub.' -Ends- About EY | Building a better working world EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers to the complex issues facing our world today. EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of individuals' rights under data protection legislation are available via EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit The MENA practice of EY has been operating in the region since 1923. For over 100 years, we have grown to over 7,500 people united across 21 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region. © 2025 EYGM Limited. All Rights Reserved. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice. This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.
Arabian Business
10-02-2025
- Business
- Arabian Business
MENA IPOs raised $12.6bn last year, more growth expected in 2025
According to the EY MENA IPO Eye Q4 2024 report, MENA markets saw a total of 54 initial public offerings (IPOs) in 2024, raising $12.6bn in total. When compared to 2023, last year recorded a 12.5 per cent increase in the number of IPOs and a 17.6 per cent rise in proceeds. The year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs such as Talabat Holding plc, OQ Exploration & Production and Lulu Retail Holdings PLC that were listed during the last quarter of the year. MENA IPOs Brad Watson, EY MENA Strategy and Transactions Leader, said: 'The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market. 'The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. 'In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity. 'The market is also anticipating the Arena platform from the DFM, which is expected to launch in 2025.' During Q4 2024, 25 IPOs raised $7.9bn, which represents a 32 per cent increase in number and a 59.4 per cent surge in proceeds when compared to Q4 2023. Talabat Holding plc, which listed on the Dubai Financial Market (DFM), raised the highest proceeds, contributing 25.8 per cent of the overall proceeds for Q4 2024. It was followed by OQ Exploration & Production, which listed on the Muscat Stock Exchange (MSX) and raised $2bn – the largest IPO in Oman to date – and accounted for 25.3 per cent of the total quarterly proceeds. Meanwhile, the Bahrain Bourse witnessed the AlAbraaj Restaurants Group IPO that raised $23.9m. Outside of the GCC region, there were two IPOs in Q4 2024 – Compagnie Marocaine de goutte a goutte et de pompage (CMGP) in Morocco and The United Bank in Egypt. The Saudi Arabia dominated the region's IPO activity with 17 out of the 25 listings in Q4 2024, with total proceeds of $1.2bn. Five IPOs took place on the Tadawul Main Market with total proceeds of $1.1bn. Arabian Mills for Food Products Company and United International Holding Company marked the highest proceeds at $300m each. The remaining 12 IPOs, raising $119m in total, were listed on the Nomu – Parallel Market. In 2024, various sectors contributed to IPO funds raised in KSA, with the largest shares coming from commercial and professional services at 20 per cent, materials at 12.5 per cent, food and beverages (F&B) at 10 per cent and healthcare equipment and services at 10.0 per cent. In the UAE, the Abu Dhabi Securities Exchange (ADX) welcomed two IPOs in Q4 2024 with $2bn in combined proceeds. Lulu Retail Holdings PLC raised $1.7bn, and ADNH Catering PLC raised $235m. The ADX also saw a direct listing of Mair Group. In Dubai, the DFM had one new listing in Q4, Talabat Holding plc in the consumer and technology sector, raising $2bn. For the UAE, ESG goals remain a priority. The country has introduced a law, effective May 2025, that requires companies to report carbon emissions. Additionally, businesses must adopt decarbonisation strategies that include renewable energy and carbon offsetting. Applicable to all sectors, including free zones, the law sets penalties for noncompliance, encourages research and development and promotes carbon trading through a dedicated registry. These measures align with the UAE's 2050 net-zero ambitions and are likely to influence IPO market dynamics as companies prioritize sustainability to attract investors. Gregory Hughes, EY MENA IPO and Transaction Diligence Leader, said: 'The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46 per cent of the total IPO activity in that year. 'Nomu listings accounted for 50 per cent, indicating robust activity in the junior Saudi market. Talabat and OQ Exploration & Production raised substantial proceeds, showcasing strong demand from regional investors. 'The region also continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike.' The outlook for MENA IPOs in 2025 remains positive, with 38 companies and 22 funds intending to list on the region's exchanges across a variety of sectors. Among the GCC countries, KSA remains the lead in listings with 27 companies in the pipeline, followed by the UAE with three, and Qatar with one. Outside of the GCC, Egypt has announced five IPOs, and Algeria has two businesses intending to list. Notable companies, such as Etihad Airways PJSC and Amanat Holdings from the UAE, as well as Panda Retail Company and Riyad Capital from KSA, are among those considering IPOs in 2025.
