Business Transactions in Qatar

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By Nagi Kaldawi

The Business transactions are part of the Merger & Acquisition (M&A) in which companies or assets are purchased (in full or in part) or consolidated through different types of financial transactions.

This type of business/financial transaction requires engaging a professional and experienced financial advisor/consultant to provide all the required supporting services to ensure that the process is adequate and fair to both parties.

The Consultant can be engaged wither by the sell (sell-side) or the buyer (buy-side); the tasks that need to be covered in the business valuation (also covering the market and business risk assessment) to come up with the fair value of the company (and its shares) and to perform due diligence on the operational and financial aspects of the business to ensure that all the information is disclosed, represented and covered in the valuation.

Once the business valuation document is ready, it will be followed by an information memorandum or teaser that summarizes the opportunity, a business sector with its outlook, the company value, a brief about the current owners/management, the number of shares offered for sale, price per share, the business/market risks, etc. which are all considered to be important factors that would be considered by any potential investor; those who are interested will have access to the full business valuation report for final decision and acquisition (or merger).

According to published reports, the key business sectors of completed M&A deals in Qatar during 2022 are TMT (technology, media, and telecom), financial services, consumer and retail, industry and materials, healthcare, agriculture, and real estate.

Many of the acquirers are from regional (GCC countries) such as Saudi Arabia, UAE, Kuwait, Oman, and Bahrain; this shows that the Qatari market is attractive not only to foreign investors but also to regional countries who look to expand their businesses/portfolio in Qatar.

According to the 2022 Foreign Direct Investment (FDI) Confidence Index by Kearney, Qatar made the list of the top 25 countries since the index was founded in 1998; Qatar is now ranked 24th on the FDI index knowing that this list includes only two Arab countries, Qatar and the UAE (ranked 14th).

It is expected that the number of M&A transactions will increase in the coming period from foreign and regional investors following FIFA 2022 event which will further establish Qatar on the global investment map taking into consideration the country’s vibrant economy, business potential, and business opportunities in various sectors.

If you would like to know more about the Business Transactions service in Qatar please contact us at +974 6669 3950 or send an email to This email address is being protected from spambots. You need JavaScript enabled to view it..

 

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