The investment banking in the Middle East experienced a rebound in activity in the first quarter, indicating a return to confidence in the market, according to an analysis by Thomson Reuters.

The mergers and acquisitions (M&A) volumes tripled during the first quarter with $10.7 billion in announced deals, making it the busiest quarter for M&A in the region since 2007, according to Thomson Reuters Middle East Investment Banking League Tables.

The real estate and industrial sector deals too dominated the landscape, with the UAE driving most of that activity, the survey pointed out.

JP Morgan emerged as the leader in M&A fee ranking, which accounted for 49 per cent of total fee activity, it added.

'After a very tough 2009, the Middle East investment banking industry seems to have started the year in a strong position with the number of deals announced showing real sign of confidence returning to the market,' remarked Basil Moftah, managing director of Thomson Reuters Middle East & Africa.

Debt issuances, which faced a rough period in 2009 as capital dried up, surged seven-fold in one year to $4.5 billion. Deutsche Bank snagged the top spot in Middle Eastern DCM fee activity, he noted.

According to Moftah, the equity issuances jumped 67 per cent to hit $3.7 billion, led by financials, telecom and real estate deals. The equity capital market fees made up 28 percent of the total fees, with the Central Bank of Libya taking the lead for ECM ranking, he pointed out.

The financial sector drove strength in syndicated loans for the region, followed by the telecommunications sector, said the survey.

National Bank of Abu Dhabi, Santander, HSBC and Mitsubishi UFJ Financial Group tied for first place for first-quarter lending with $895.9 million, it added.

Syndicated loan fees made up 12 per cent of total fees, with Standard Chartered topping the fee ranking for syndicated loans. Investment banking and adviser fees climbed 11 percent to reach $175.9 million, it said.

Thomson Reuters Investment Banking League Tables' said its rankings of banks and advisors operating in the Middle East are based on deal activity and fees.-Reuters