M&A activity in Arab world has high potential for growth

"Investment in the region [Arab world] has become attractive at a scale not seen before,' said Sameer Al Ansari, CEO of Dubai International Capital, during an ASF 2006 session on 'Going Shopping! Future M&A Trends'.

"I am seeing an increased activity in M&A. We started before the price of oil went up and I am sure the region can continue to prosper and sustain M&A activity even though oil prices may come down," said Al Ansari.

"There is the emergence of institutional investors focusing on the region. We are still a long way from where we want to be, but certainly we are heading in the right direction," he pointed out.

The Dubai International Capital CEO said his own company was not into "trophy assets" but focussed on strategic investments and increasing shareholder value.

"Dubai is investing in itself and is leading the region in creating a world-class infrastructure and vision. It has generated substantial wealth and attracted significant inward investment," Al Ansari pointed out.

Axel Wieandt, Head of Corporate Investments and Divisional Board Member of Deutsche Bank Group said M&A activity in Middle East and North Africa (MENA) region is evolving, driven by government sponsored foreign investment institutions.

"But more strategic investors are coming in, for example, in telecom and retail. There is no shortage of capital, markets are developing and evolving," he said.

Mohammed Hassan Omran, Chairman of etisalat, spoke about his own company's acquisitions and investments, which over the past three years have reached US $10 billion.

"The aim is to be one of the biggest operators for telecom and related services. The markets are changing and the customers are changing. We expect that in future there will be four or five operators working in the region. We want to be one of them - hopefully the number one," Omran said.

Eric Schmidt, Google Chairman and CEO and ASF 2006 Co-Chair, said that the Internet will bring about a revolution in the Arab World through which its people and businessmen could reach a worldwide audience.

"There will be some very large winners and some very large losers - that is what makes it so interesting," Schmidt said.

The ASF, which has attracted more than 600 distinguished participants and 115 worldwide speakers, is a vehicle for change and a key driver in the reform and policy shaping of governmental and business organisations throughout the Arab world.

Through a powerful network, facilitated working sessions, state-of-the-art technology, exclusive knowledge and informal platforms, the ASF provides participants with the resources needed to create opportunities for change in their own environments.

Among those participating in this year's event are influential personalities from the region's business, government and civil society sectors, and internationally-renowned politicians and business leaders.

Developed under the theme, 'Creating Opportunity from Change', this year's sessions are underpinned by bespoke knowledge and research on the Arab world, providing a unique information platform for the continued strategic development of the Middle East and North Africa on the global stage.

Focusing on four distinct tracks - Governance, the CEO Agenda, Arab Society and Socio-Economic - the ASF is the leading Arab platform for strategic thinking and the main launch pad for regional programmes and initiatives.