RIYADH: Transactions in mergers and acquisitions, private equity, and venture financing fell during the first 11 months of the year, with the Middle East and Africa experiencing the smallest decline in deal activity.
According to a new report from GlobalData, while worldwide deal volume dropped 8.7 percent year-on-year to 45,921 transactions compared to 50,308 during the same period in 2023, the Middle East and Africa region saw a relatively modest 5 percent decline.
This contrasts with sharper decreases in regions such as North America and South and Central America, highlighting the Middle East and Africa’s comparative stability amid broader global challenges.
Meanwhile, mergers and acquisitions and private equity transactions experienced smaller declines of 2.8 percent and 3 percent, respectively.
Aurojyoti Bose, lead analyst at GlobalData, attributed the overall decline in global deal activity to a steep drop in venture financing, which fell 18.7 percent year-on-year.
“Even though all deal types experienced decline, the overall setback was primarily driven by a massive fall in the number of venture financing deals,” Bose said.
The broader global slowdown in deal activity was felt across major markets. North America, which accounted for approximately 40 percent of worldwide deals, saw a significant 12.5 percent decline in overall deal activity, contributing heavily to the international contraction.
Europe recorded an 8.8 percent decline, while Asia-Pacific and South and Central America saw decreases of 3.6 percent and 17.5 percent, respectively.
The subdued environment extended to several major markets globally. Among the hardest-hit countries, China and France experienced year-on-year declines of 21.9 percent and 21 percent, respectively.
The US, the largest single market for deals, saw an 11.7 percent drop, while Canada and Germany recorded declines of 18.9 percent and 12.1 percent, respectively.
Other countries reporting notable decreases included Italy with 6.8 percent, the Netherlands with 13.8 percent, and Spain with 14.2 percent, as well as Sweden with 9.7 percent, and Singapore with 15 percent.
In the travel and tourism sector specifically, a total of 649 deals were announced globally between January and November, representing a 5.9 percent year-on-year decline compared to 690 deals in the same period of 2023.
While the Middle East and Africa saw an 18.2 percent drop in deal volume in the sector, North America registered a steeper decline of 31 percent.
South and Central America followed with a 20 percent decrease, and Asia-Pacific experienced a smaller drop of 2.3 percent.
In contrast, Europe stood out as the only region to record growth, with deal volume increasing by 15.9 percent during the same period.
Considering regional conflicts such as the changes in Syria’s regime, the conflict in Yemen, and Israel’s war on Lebanon and Palestine, the 18.2 percent drop in travel and tourism deal volume in the Middle East and Africa is relatively moderate.
This performance suggests resilience in the region’s travel and tourism sector, which continues to attract investment despite these significant challenges.
“The travel and tourism sector deal activity showcased a mixed trend across the different deal types during the specified timeframe. And similarly, the trend across different regions and key markets remained a mixed bag during the review period,” Bose said.
