Total M&As inched down in 2H of 2022 to 115 deals, valued at $4.2 billion, compared to 126 deals worth $4.3 billion in the corresponding half of 2021, the report data showed.

The average deal volume per month also fell to 19 deals in 2H of 2022, down from 21 deals in 2H of 2021.

The total deal volume and value slightly decreased from 243 deals with $9 billion in value in FY 2020/2021 to 242 deals with $8.2 billion in value in FY2021/2022, according to the report.

On a regional level, the report said that overall M&A activity in the Middle East rose in volume but decreased in value in both the 2H of 2022 and FY2021/2022.

Accordingly, deals closed in the region rose by one percent in the 2H of 2022 with 248 deals and by four percent in FY2021/2022 with 497 deals.

Nevertheless, the total value declined by 60 percent to post $18 billion in the 2H of 2022 and shrank by 46 percent in FY2021/2022 to record $40.4 billion.

Globally, the M&A activity slowed down in 2022 compared to the previous year which recorded the highest level of dealmaking, reaching a record $5 trillion.

Deal values declined to $3.6 trillion in 2022, down from $5.7 trillion in 2021, representing a 37 percent decline.

“Despite increased global and domestic market uncertainties generally and significant devaluation of the Egyptian pound, we continue to see reasonably strong interest and opportunities in the Egyptian market preserving its momentum in dealmaking and further attracting local and international investors from various sectors, particularly in defensive industries such as TMT, energy, healthcare and education, as well as financial services, to sign and close deals,” said Mohamed Ghannam, managing partner at Helmy, Hamza & Partners, Baker McKenzie Cairo.

Since the onset of the Russian-Ukrainian conflict in February 2022, $25 billion in indirect investments in local debt instruments have fled the local market, driven mainly by the attractive high interest rates in the US and European markets as well the appreciation of the US dollar.

Over almost a year, Egypt has witnessed a significant shortage of hard currency liquidity, especially the US dollar, although its net international reserves have slightly been recovering to post $35 billion in January.

Egypt is currently engaging with the International Monetary Fund (IMF) in an Extended Fund Facility programme that avails a $3 billion loan for Egypt over four years.

Under the programme, Egypt is committed to granting the private sector a greater role to play in the economy, raising its share in the economic activity to 65 percent over three years, up from the current 30 percent.

Accordingly, Egypt has recently unveiled a list of 32 state-owned companies that operate in 18 economic activities to be offered as investment opportunities either under the government initial public offering (IPO) programme or to strategic investors.

The action aims to bridge the financing gap of $17 billion Egypt is expected to experience over the coming four years, $2.5 billion of which are anticipated from the state-owned asset sales.