According to a report by GlobalData, deal activity in the MEA region dropped by 28.9% in Q1 2023 compared to the same period last year, but no further information about the region was provided.
Globally, the deals market also saw a decline of 29.1% in Q1 2023, with mergers & acquisitions, private equity, and venture financing deals falling by 19.6%, 36.6%, and 37.8%, respectively. However, March showed a 6.6% increase in deal volume compared to the previous quarter.
Aurojyoti Bose, Lead Analyst at GlobalData, said: “As the current geopolitical tensions are adversely affecting the global economic situation, deal makers have become cautious. The trend is alike across geographies, with recession fears impacting deal-making sentiments significantly.”
Although deal activity declined globally in Q1 2023, North America remained the dominant region, despite experiencing a 34.3% decrease in deals compared to the same period last year.
Most countries, including the US (35.8%), China (18.9%), UK (19.5%), India (38%), Canada (18.9%), Japan (20.7%), Germany (25.9%), France (23.4%), South Korea (39.5%), and Australia (20.3%), saw a drop in deal volume in Q1 2023. Europe, Asia-Pacific, and South & Central America also experienced a decline in deal volume by 22.5%, 26.5%, and 33.3%, respectively.
