According to a Refinitiv analysis, mergers and acquisitions in the Middle East and North Africa (MENA) totaled $109 billion in 2021, up 57 percent from the previous year and the third $100 billion year on record.

The Middle East and North Africa Investment Banking Report for 2021 was produced by Refinitiv, a London Stock Exchange Group company.

In 2021, a total of 1,141 agreements were registered, up 40% from the previous year and the greatest annual number since records began in 1980. With 863 agreements in 2021, M&A involving a MENA target reached $72.9 billion, the second-highest amount since records began in 1980 and the best year for deal volume since 1980.

Investment banking fees in MENA totaled $1.4 billion in the full year of 2021, up 3% from the same time the previous year and the second-highest amount on record, according to the report.

In 2021, MENA equity capital markets (ECM) raised $14.5 billion from 42 offerings, a 193 percent increase in proceeds over the previous year and a 13-year high. In 2021, the MENA region's Debt Capital Markets (DCM) totaled $107.5 billion from 152 issuances, a decrease of 12% in proceeds over the same period last year.

"Despite the uncertainties surrounding the pandemic and the forecast for 2021, M&A in the MENA area recovered significantly," said Saiem Jalil, Refinitiv's Deals Intelligence Analyst. M&A with any MENA involvement reached 1,000 agreements for the first time in 2021, indicating the region's growing optimism. Strong improvement in company performance during 2021 marked a return for capital markets, with ECM receipts rising 193 percent to US$14.5 billion and investment-grade corporate debt proceeds at record highs of US$66 billion."

Completed mergers and acquisitions fees fell by 26% to $317.2 million, accounting for 22% of total investment banking fees. Equity capital markets had their best year in 13 years, generating $334.4 million in fees, up 251% from the previous year. Equity underwriting costs accounted for 23% of overall fees, the highest percentage since 2008.

With $45.4 billion in inbound M&A activity in 2021, the highest level since records began in 1980, inbound M&A activity set new highs. In 2021, outbound M&A reached $30.2 billion, a six-year record and up 198 percent from 2020. Aramco Gas Pipelines Co's $15.5 billion lease and leaseback arrangement for its gas pipeline network was the largest M&A deal in the MENA area in 2021. With US$38.8 billion in deal activity, Energy and Power was the most active sector, up 189 percent over the previous year.

Saudi Arabia was the most targeted country, with $27.3 billion in M&A activity, accounting for half of the region's target M&A. In 2021, JP Morgan led any MENA Involvement M&A league chart, with $43.3 billion in linked transactions and a 40% market share. With a 37 percent market share, Goldman Sachs placed in second.