Deals activity, including merger & acquisitions (M&A), private equity, and venture financing, in the Middle East and Africa region dropped 30% year-on-year (YoY) in the first five months of 2023,  according to a report by London-based data and analytics firm GlobalData.

Globally, 22,525 deals were concluded between January and May 2023, down 27% from 30,753 deals achieved in the same period last year. 

The number of M&A, private equity and venture financing deals fell by 21%, 28% and 33%, respectively, highlighting the overall downturn in deal activity.

Aurojyoti Bose, Lead Analyst at GlobalData, said the decline in global deal activity reflects the impact of the changing economic landscape.

“Uncertainties including the rising interest rates, high inflation, fear of recession and geopolitical tensions are making investors more cautious,” he added.

Deals volume in Europe, Asia-Pacific and South & Central America regions YoY slumped by 23%, 25% and 36%, respectively.

South Korea reported the highest annual decline in deal activity at 40%, followed by India (36%), Spain (31%), the US (30%), and Germany (28%), the report stated.

(Editing by Seban Scaria seban.scaria@lseg.com)