Chinese outbound mergers and acquisitions (M&A) to the Middle East increased over the first half of last year as local investors became increasingly confident about overseas prospects, said a report.

The fifth edition of the Deloitte 2013 Greater China outbound Mergers & Acquisitions (M&A) spotlight, ‘Graduating up the value chain’ survey found that nearly three-quarters of respondents (based in China) said that levels of outbound M&A would rise in the coming 12 months.

In the first six months of 2013, 98 outbound deals totalled to $ 35.3 billion, as compared to the 97 transactions worth $22.9 billion for the same period in 2012.

The deals in the energy and resources, and consumer business industries accounted for 53.1 per cent of total volumes at $29.1 billion, up from 50.5 per cent at $17 billion over the same period in 2012.

James Babb, clients and industries leader, and responsible for the China Service Group at Deloitte Middle East, said: “Respondents are more optimistic about the China outbound M&A landscape than they were 12 months ago. A cumulative 74 per cent of respondents believe that activity will increase over the coming 12 months, whereas when interviewed the same time last year, just two-thirds of respondents answered similarly.”

About 63 per cent of respondents surveyed expected the Middle East to see a sizable number of consumer business and transportation Chinese outbound M&A investments taking place, ahead of North and South America (45 and 44 percent) and Africa (35 percent). The Middle East ranked third after Asia and Europe.

About 60 per cent of respondents surveyed expected the Middle East to see a sizable number of energy and resources Chinese outbound M&A investments taking place, ahead of Europe (49 per cent).

With regard to real estate and construction M&A, about 45 per cent expected the region to see a number investments, after Asia, Africa and South America.

About 52 per cent expected activity in the financial services sector, ahead of Europe, Africa, South America and North America, while less than 10 per cent expected activity in the technology, media and telecommunications, life sciences and healthcare, and manufacturing industries.

Deloitte Middle East will host the 2014 EMEA Chinese Services Group Meeting in March/April in Dubai, with prominent experts from through the EMEA and China firms in attendance. - TradeArabia News Service