Business sentiment in MENA picks up: survey

A business survey released here on Monday said about half of the company decision-makers in the Middle East and North Africa (MENA) feel positive about global and local economy.

The survey, which was conducted by consultancy EY on the business sentiment in relation to potential mergers and acquisitions (M&A), found 48 percent of the respondents feel positive about global economy, while 57 percent believe the local economy will improve in 2017.

Six months ago, the same survey showed only 22 percent of respondents were bullish about global economy and 26 percent saw local economy in a positive way.

As the 16th edition of the Capital Confidence Barometer, the survey also said 39 percent of respondents expected the M&A deals to increase in the next 12 months.

At the annual two-day Merger Market MENA conference which began on Monday, Matthew Benson, the partner transaction support Leader at EY MENA, agreed that the rise in M&A deals is expected.

"We see significant potential for M&A deals in the information and telecommunication technology sector, oil and gas, financial services and real estate," he said.

Ruth McKee-Alghamdi, head of Merger Markets MENA Region , also supported EY's view.

"In the food and beverages sector alone, the number of M&A deals reached 3 to 4 billion U.S. dollars in 2016, over 402 million dollars the year before, with a strong pipeline predicted for 2017," he said. Endit