DUBAI: Despite a sharp decrease in international M&A (merger and acquisition) trends, in particular high-end deals in the wake of the global meltdown, the Middle East market remains optimistic, said Faisal Al-Sayrafi, managing director and CEO of the Jeddah-based Financial Transaction House (FTH).

Al-Sayrafi — who addressed a press conference on the sidelines of the three-day Global M&A conference that opened at Grand Millennium Hotel in Dubai yesterday — said there is an increase in foreign companies’ interest in Gulf markets wherein global, in particular Asian, investors are looking to make their mark by acquiring small and mid-size companies.

“This sector requires specialized knowledge of niche markets, which are catered for through Global M&A, through our 12 specialized sector teams, including business services, chemicals, leisure and retail and packaging,” he added.

“Dubai represents the perfect backdrop for our meetings. As a global organization, Global M&A bridges deals, investors and opportunities between the east and the west.

“As an upcoming hub, Dubai represents an important transit point between America and Europe in the West, and Asia and Australia in the East.

“The Middle East, especially the UAE and Saudi Arabia, are becoming points of interest for investors on a global scale and provide excellent opportunities and new ideas for investment,” Al-Sayrafi added.

The conference, hosted by FTH, unfolded a series of meetings between partners in addition to the release of a global study conducted recently on global mid-market M&A activities.

Regional M&A activity is expected to weather the current economic slowdown and register a robust growth, according to the report by Global M&A Gmbh, based on a study conducted by Mergermarket.

The report, however, warned that the current closed-door policies need urgent remedial measures to instill faith in potential investors.

Noting the forward looking steps currently underway in the UAE and Kuwait in particular, the report urges other nations to set their agendas in perspective to match global mandates. As part of the three-day conference to acquaint the global investors with regional dynamics even more closely, the report portends a buoyant scenario for mid-level investments in particular.

The volume of middle-market M&A deal among private equity as well as corporate executives is continuing its downward slump as the global credit crisis continues to ripple from one country to another, but deal makers are upbeat about Middle East activity, the report says.

“The current trends being witnessed make the issue still somewhat divided. The prevalent uncertainty in the broader financial world could possibly be holding buyers and sellers from doing deals,” said Al-Sayrafi.

“However the flip side is that the economic climate could drive activity in the mid-level segment. It is because of market conditions that M&A will increase. Low values will attract buyers.”

The market is, however, expected to see increased movement to and from the Middle East.

“The funds are here and the economies are experiencing a growth despite a global slump. More investors are expected to view the Middle East for mid-sized investments, in particular those hinging around Islamic tenets,” said Al-Sayrafi.

Mike Gibbons, chairman of Global M&A, and Caspar Hobbs, CEO and co-founder of The Mergermarket Group, also addressed the press.