Thomson Reuters, a major source of intelligent information for businesses and professionals worldwide, Tuesday released the annual investment banking analysis for the Middle East region.

According to estimates from Thomson Reuters/Freeman Consulting, Middle Eastern investment banking fees reached $147.25 million during the fourth quarter of 2014, 19 percent more than the value recorded during the previous quarter.

Nadim Najjar, MD, MEA, Thomson Reuters, said: “The value of announced mergers and acquisitions (M&A) transactions with any Middle Eastern involvement reached $22.7 billion during the fourth quarter of 2014, more than double the value registered during the previous quarter, and the highest quarterly total since the first quarter of 2008.”

He added: “Middle Eastern equity and equity-related issuance totaled $11.4 billion in 2014, a 173 percent increase in activity from 2013 ($4.2 billion), while Middle Eastern debt issuance reached $3.5 billion during the fourth quarter of 2014, half the value raised during the third quarter.”

Despite the uptick in the investment banking fees during the last quarter, fees earned during 2014 declined 3 percent from $776.2 million during 2013, to $751.7 million. Equity capital markets underwriting fees totaled $125.1 million in 2014, up 163 percent from the previous year ($47.5 million), and marking the best annual total for ECM fees in the Middle East since 2009. ECM fees accounted for 17 percent of this year’s overall Middle Eastern fee pool.

Fees from completed M&A transactions totaled $159.2 million, down 5 percent from 2013 and accounting for 21 percent of the fee pool. Fees from debt capital markets underwriting declined 27 percent year-on-year to $86.8 million, while syndicated lending fees fell 21 percent to $233.4 million.

HSBC earned the most investment banking fees in the Middle East during 2014, a total of $56.9 million for a 7.6 percent share of the total fee pool. Lazard topped the Middle Eastern completed M&A fee league table, while HSBC was first in the ECM and DCM underwriting fee rankings. Mizuho Financial Group took the top spot in the Middle Eastern loans fee ranking.

As for Middle Eastern M&A, the year finished 23 percent up on 2013 with $50.3 billion of announced M&A transactions in the region, the highest annual total since 2010. Outbound M&A drove 2014 activity, up 74 percent from 2013 to reach $26 billion, the highest annual total since 2009. Qatar’s overseas acquisitions accounted for 65 percent of Middle Eastern outbound M&A activity, while acquisitions by UAE and Saudi Arabian companies accounted for 15 percent and 9 percent, respectively. Domestic and inter-Middle Eastern M&A declined 12 percent year-on-year to $14 billion during 2014. Inbound M&A also declined, falling 30 percent to $4.2 billion.

The largest deal with Middle Eastern involvement in 2014 was the $9.1 billion offer for Songbird Estates, the owner of London's Canary Wharf financial district, by the Qatar Investment Authority and Canada’s Brookfield Property Partners. Boosted by this deal, real estate was the most active sector in 2014, accounting for 38 percent of Middle Eastern involvement M&A.

Citi topped the 2014 announced any Middle Eastern involvement M&A league table with $15.4 billion.

As regards equity capital markets, 13 initial public offerings (IPOs) raised $7.9 billion and accounted for 69 percent of activity in the region. Follow-on and convertible offerings accounted for 22 percent and 9 percent, respectively. The National Commercial Bank (NCB) raised $6 billion from its IPO in November. It holds the record for the largest Middle Eastern IPO of all time, and was 2014's second biggest IPO after Alibaba. HSBC took first place in the 2014 Middle Eastern ECM ranking followed by GIB Capital and Qatar National Bank.

Debt capital markets were active as well. Bonds issued during 2014 decreased 6 percent from 2013, to $ 37 billion. Investment grade corporate debt totaled $ 33.4 billion and accounted for 90 percent of the annual total. The UAE was the most active nation accounting for 48 percent of activity, followed by Saudi Arabia with 30 percent. International Islamic debt issuance increased 18 percent year-on-year to reach $39.1 billion. HSBC took the top spot in the Middle Eastern bond ranking during 2014 with a 14 percent share of the market.