How are Qatar’s companies creating efficiencies and value through consolidation? Jaimeet Gandhok, from the Investment Banking team at QInvest, discusses the M&A environment as an integral part of Qatar’s fully-fledged and internationally competitive financial centre.
The Qatari financial markets have become immensely appealing to foreign investors in recent years. A key part of this is the transformation of Qatar’s financial and capital markets infrastructure, which today is highly sophisticated. The country is poised for rapid economic growth rooted in global demand for its liquefied natural gas (LNG) and further supported by the government’s strategic initiatives under the National Vision 2030. Companies across a variety of sectors - including oil & gas, financial services, transportation and healthcare - are expected to tap into financial and capital markets in order to raise capital as they look ahead to their next phase of growth.
Owing to the highly competitive business landscape, with companies now increasingly focused on profitability and margin expansion, M&A will serve as a powerful lever to unlock value, fuel growth, and drive efficiencies. Focused on leveraging complementary strengths, companies will seek to unlock strategic advantages that are otherwise challenging to achieve organically.
QInvest is recognized as a premier Islamic financial institution in the region, having successfully executed a number of notable M&A transactions in Qatar. Our Investment Banking team are experts and trusted advisors on local M&A transactions, assisting buyers and sellers to unlock value through synergies and optimize businesses to enhance growth opportunities, by pioneering landmark, first of their kind transactions.
Amwaj: Merger with Shaqab and Atyab
QInvest acted as the sole financial adviser on the creation of the largest Qatari company in the catering industry. Amwaj, a wholly-owned subsidiary of Gulf International Services, merged with Shaqab Abela Catering and Atyab Fruits and Vegetables in a landmark all-share combination.
The transaction was the first of its kind in Qatar, providing each shareholder with a stake in the new company based on independent valuations. The combined entity was then listed on the Qatar Stock Exchange, realising further value for shareholders, and allowing Gulf International Services to successfully dispose of a business it deemed non-core to focus on its core operations and unlock additional avenues of future growth.
Creating efficiency through M&A
This merger demonstrated a focus on realising value through consolidation, unleashing synergies and transformative efficiencies among domestic players. Expert advice, backed by the ability to engineer fast-track growth through a transaction, is key for companies and for shareholders to extract maximum underlying value.
M&A can be a powerful transformative tool. However, for Qatari companies to take that step, advisers like QInvest need to reassure clients of the potential hidden value, ensure careful and meticulous execution and guide them through every stage of the process to ensure lasting post-transaction success.
As Qatar enters its next phase of growth, with significant push from the National Vision driving diversification endeavours, inorganic growth through M&A will be an indispensable strategy in the modern business playbook.
To speak to Serena Naimat about your company’s future, please email snaimat@qinvest.com.