Latest news with #EY
Khaleej Times
9 hours ago
- Business
- Khaleej Times
UAE remains top target country for Mena M&As in first quarter
The UAE remained the top target country in terms mergers and acquisitions (M&A) within the Middle East and North Africa (Mena) region in the first quarter of this year, with 63 deals totaling $20.3 billion in Q1 2025 data showed. According to the latest EY Mena M&A Insights 2024 report, Kuwait ranked second in terms of deal proceeds, reaching $2.3 billion, driven by two major transactions in the Diversified Industrial Products and Power & Utilities sectors. The Mena region witnessed 225 M&A deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31 per cent increase in deal volume when compared year-on-year. Total deal value rose by 66 per cent to $46 billion in Q1 2025, when compared to $27.6 billion in Q1 2024. Cross-border deals were the primary driver of M&A activity in the Mena region, contributing 52 per cent of total deal volume with 117 deals and 81 per cent of total deal value at $37.3b. The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, Mena EY-Parthenon Leader, said: 'In 2024 we saw a steady flow of M&A deals and the Mena region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment. This growth is also reflected in the steady increase of domestic M&A activity, which contributed 48 per cent of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the IMF projection that Mena GDP will grow by 3.6 per cent this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.' During the first three months of 2025, Canada attracted the highest outbound deal value from Mena investors at $6.4 billion, while the USA remained the preferred target destination in terms of deal volume. Sovereign Wealth Funds (SWFs) like the Abu Dhabi Investment Authority, Saudi Arabia's Public Investment Fund and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals. Domestic M&A activity continues to rise from previous years In the first quarter of 2025, M&A activity in the Mena region witnessed a 20 per cent increase in deal volume while deal value rose significantly reaching $8.7 billion as compared to $1.69 billion recorded in Q1 2024. The technology sector led domestic M&A activity in Mena in Q1 2025, contributing 37 per cent of total domestic deal value and 27 per cent of total domestic deal volume. The largest domestic deal during the first quarter of the year was a $2.2b acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40 per cent stake in Khazna Data Centres, a digital infrastructure provider. Intraregional deals involving the UAE, Kuwait, and Saudi Arabia accounted for 83 per cent of total domestic deal value and 56 per cent of total domestic deal volume, highlighting strong intraregional M&A activity, particularly in the technology, industrials, and real estate sectors. The Mena region continues to emerge as one of the most attractive destinations for foreign direct investment during the first few months of 2025, with inbound deal volume surging by 21 per cent and deal value reaching $17.6 billion, when compared to $2.5 billion in Q1 2024. During the first three months of 2025, outbound deal volume increased by 63 per cent when compared to Q1 2024, with a total deal value of $19.7 billion, contributing 43 per cent of overall deal value. The UAE and Saudi Arabia led the outbound investment from the Mena region, accounting for 77 per cent of total deal volume and 94 per cent of total outbound value. Though chemicals and oil and gas dominated in outbound deal value, outbound deal volume was primarily focused on technology, diversified industrial products, and professional services. This trend reflects the region's broader diversification strategy into high-growth global sectors. The UK was the leading destination for outbound M&A deals from Mena by volume, recording 13 transactions in Q1 2025. Canada and Peru together contributed 50 per cent of total outbound deal value driven primarily by a major transaction in Canada's chemical sector. Adnoc and Austria's OMV agreed to acquire Canada's Nova chemicals for $6.3 billion by holding 46.94 per cent each in the newly formed Borouge International Group. Anil Menon, Mena EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: 'The Mena deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions. The Mena deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.'
Time of India
9 hours ago
- Business
- Time of India
Tech adoption picks up in Corporate India; so does employment fraud
As tech adoption picks up pace across India Inc, organisations find themselves up against growing instances of employment fraud that includes fraudulent employment records , falsified educational credentials , dual employment, moonlighting, and even use of deepfakes in online interviews. Employment-related discrepancies account for the biggest share of red flags across sectors including IT/ITeS, financial services, healthcare, professional services and BPO/KPO/GCCs, according to a report shared exclusively with ET by professional services firm EY . 'The First Firewall: Background checks as India Inc's frontline defence' report is based on one million background checks conducted by EY across various sectors over the last year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Studie mit 12.000 Anwendern: 78% zeigen sichtbar verbesserte Venen Venen Kompass Weiterlesen Undo While employment fraud has been a longstanding menace in India, it has risen to concerning levels and is posing a big risk to most sectors. Top reasons for discrepancies across five major sectors Sector Employment Education Civil & criminal checks Other databases Address Financial services 71% 11% 14% 3.99% 0.01% Healthcare 83% 13% 0.3% 2.85% 0.85% IT 85% 5% 3% 6% 1% BPO/KPO/GCC 75% 10% 1% 7% 8% Professional services 91% 4% 0.5% 0.5% 4% Source: EY report Live Events 'To tackle this, today, background checks have become non-negotiable across sectors,' said Arpinder Singh, global markets and India leader, forensic and integrity services, at EY. And HR heads across industries are increasingly using technology-led background verification solutions. 'There's a growing pattern: 'How can we use technology to make things quicker?'' Singh said. The technology sector is seeing a surge in moonlighting while the healthcare space battles rising credential fraud amid ongoing talent shortages. 'Validating the licences of healthcare professionals is essential to reduce clinical errors,' said Amit Rahane, partner, forensic and integrity services, at EY. 'In financial services, ensuring employee integrity protects confidential data.' In employment discrepancies highlighted, about 75% of the red-flagged candidates had submitted fake employment documents in the healthcare sector, while 84% had overstated their experience in the financial services sector. Around 45% of the discrepant candidate profiles in the IT sector were found to be moonlighting while 38% of the candidates called out in the in the BPO/ KPO/ GCC sectors did not provide mandatory documents, such as experience letter or service letter, or UAN linked consent, the report found. For education-related frauds, 50% of such discrepancies that came up in the financial services sector involved candidates who had submitted fake education certificates; in professional services, 88% such cases had submitted fake documents. In 84% of discrepancy cases in the healthcare sector, candidates had obtained certification from institutes categorised as 'not accredited/approved/fake' by governing bodies. According to the EY study, the majority of the offenders are experienced professionals – 96% of fraudsters in healthcare, 88% in financial services, and 79% in IT/ITeS had already spent a few years in the workforce. Falsified documents are inexpensive, easy to procure and can be generated in a very short span of time, it said. IT/ ITeS, healthcare and financial services sectors have seen the largest number of recruitments and have been among the first to implement structured and third-party validated background checks. 'In today's rapidly evolving IT industry, background verification is vital for building a reliable team,' Rahane said. 'These practices help organisations by maintaining ethical standards and making informed hiring decisions.'
Forbes
9 hours ago
- Business
- Forbes
How Tag Americas' CEO Uses People And Product To Build Profit
The economic uncertainty of the last few months has been difficult on brands of all kinds, but consumer products—food, beverages and personal care items—have faced the challenges faster than other industries. Consumer packaged goods (CPGs) have relatively short shelf lives, tend to be purchased by a large proportion of consumers, and face steep competition. The fast consumer cycle makes CPGs among the first products that need to raise their prices, the first to experience new tariffs (especially because some products must be imported), and the first to fight for sales among financially squeezed consumers. EY released a report this month looking at the state of consumer products and found that, above all else right now, CPGs need to build their brands through disruptive optimism—simplifying their portfolios and experimenting with different kinds of engagement with consumers and retailers in order to rebuild loyalty. The future for CPG brands appears pretty grim to those who work with them. Nearly four out of five retailers told EY they believe that in the long run, only one mass-market brand will remain on their shelves. The rest of the shelf space will go to private label products, premium items and niche brands. About two-thirds of CPG companies also see this future, but the retailers are the ones who control what goes on the shelves. Most consumers still want to be brand loyal, but they're looking for greater benefits. Several attempts to keep customers loyal have been unsuccessful: 78% of consumers said they've noticed package sizes getting smaller and prices staying the same, and 42% believe that product 'improvements' is just code for cost-cutting measures. Currently, over half of consumers only buy branded products when they're on sale. The product side of these companies can help fight the negative perception drift by digging into consumer interests and needs, and looking for ways to innovate in those areas. CMOs will play an important role by telling the brand's story in an authentic way. One of the best methods for doing that, EY suggests, is employing technology like AI to create sharper consumer targeting, bring more personalized messages to customers, and create loyalty programs that meet their needs and create new repeat buyers. Discovering what consumers want out of products and making sure that message is delivered can help keep products on shelves, even as people are becoming more careful with their money. Tag Americas has been using technology to bring innovative marketing solutions to brands, and its new CEO Stephen Kiely has plans to continue moving forward through uniting people and new innovations. I talked to him about his first few months heading the agency. An excerpt from our conversation is later in this newsletter. VINCENT FEURAY/Hans Lucas/AFP via Getty Images Ever since companies began to use enterprise AI, advocates have continually said that the technology wasn't out to replace jobs, and that humans would always be a necessary part of the equation. But in practice, some companies have moved toward automating everything. Meta founder and CEO Mark Zuckerberg outlined a future like this for digital advertising in an interview earlier this month with the Stratechery podcast. Zuckerberg suggests that Meta will be able to use AI so that companies can come to them with just a link to their bank account and a list of the business outcomes they want to achieve. The AI system that Zuckerberg wants to see at Meta could produce the creative, target the correct users and produce measurable outcomes. 'I think it is a redefinition of the category of advertising,' Zuckerberg said on the podcast. Forbes contributor Kiri Masters writes that Meta isn't the only player that's considering giving the keys of advertising systems to AI. Google has been moving in that direction with PMAX campaigns, which consolidate advertising across its platforms into a single algorithm-managed campaign type—though advertisers still need to provide some creative basics. Amazon is working toward making its advertising arm a standalone business, and while it has the internal data that could provide a robust all-AI advertising platform, analysts say the company's history indicates it is more likely to pursue a more transparent approach of people working with AI. A Target store in Jersey City, New Jersey. Target continues to face challenges brought on by a downturn of its brand image, which comes on top of declining consumer confidence during an unpredictable economic situation. In its earnings report last week, the retailer saw its sales drop 2.8% year-over-year, with total transactions down 2.4%, basket sizes dropping 1.4%, and traffic down 4.8%, according to Part of the reason is that Target has been singled out for rolling back its DEI program at the beginning of the year, and a group of Black faith leaders called for a boycott of the retailer during the 40-day Lent period leading up to Easter. In their earnings call, Target leaders didn't mention the boycott as a reason for the decline in store traffic and sales, and instead highlighted their strategy for brand-building, pricing and value going into the rest of the year. Last Sunday, the Rev. Dr. Jamal Bryant called for another one-day boycott of Target, writes Forbes senior contributor Pamela Danziger. Sunday was the five-year anniversary of George Floyd's murder in Minneapolis, which kicked off the recent racial reckoning movement—and at the time had moved Target CEO Brian Cornell to increase the company's support for the Black community. Players can speak with AI Darth Vader in Fortnite. AI is being used in many places, but not everywhere. One industry that has mostly stayed away: video games, writes Forbes senior contributor Paul Tassi. With the exception of the much-hyped introduction of AI Darth Vader in Fortnite—which came through a voice rights deal with late actor James Earl Jones' estate—many publishers have steered clear of using the technology. Game developers Take-Two, EA and CDPR have all said generative AI might infringe on copyright issues, but it also could bring about 'reputational harm.' Tassi writes that the gamer community is very defensive of the actual people who make video games: artists, writers, developers, musicians and voice actors. If AI-generated options are added to games, they run the risk of being roasted on social media as 'slop.' As AI video, music and storytelling improve, these opinions could change. But for now, gamers aren't necessarily giving the AI that is being used reverential treatment. Tassi writes that social media is full of videos of gamers making AI Darth Vader do and say silly things. Tag Americas CEO Stephen Kiely. Last October, Stephen Kiely was named the new CEO of Tag Americas, the full-service digital production and sourcing firm owned by international advertising powerhouse dentsu. Kiely, a marketing veteran who has worked with dentsu companies since 2016, started his time at Tag Americas with renewed strategies and commitment to technology. I talked to him about his first few months and what he sees in the future. This conversation has been edited for length, clarity and continuity. When you became CEO of Tag Americas, what did you see as the priorities and the challenges? Kiely: There's three priorities for me: People first [and] foremost, our product, and then there's profit—the actual business behind what we do. Our people [includes] a great collection of folks across the Americas, Brazil, United States, Canada. There was some unifying that was required, and some culture that we needed to build amongst folks. Over the last five months, we've put an emphasis on re-engineering how we get together every single month. We've branded it a Tag Up, and it's not a one-way conversation. It's us having a conversation and bringing in all aspects of the business so we can learn from each other. We've got a lot of regularly scheduled programming, including something called a Tag Spotlight, where we're bringing in stellar partners from inside and outside of our industry so we can learn as a collective. We have launched 'Meet the Humans of dentsu.' Dentsu acquired Tag two years ago, and our strength exists in how we leverage all the best parts of dentsu along with Tag. I would say we've built a lot of community and trust amongst one another, which I think is the basis for good work. From a product standpoint, we are on fire in all the best ways. Over the last couple years, we've invested about $50 million in really innovative technology to help our clients get to content automation at scale without sacrificing craft. We've built a tool. It will launch in the summer and it is unlike anything the world has ever seen. It's fully built [starting with] AI up. We are winning new business left, right and center. My estimation is this year we'll grow 12% through the product that we're delivering on behalf of clients versus last year. And that's huge in this economy. We're publishing work that I think is getting noticed in the world in ways that maybe it hadn't before. We deeply believe in the spirit of co-creation with our product and that no one partner can do it alone. It's about: How do you bring in partners from media? How do you bring in partners from creative? How do you underpin all of that with data to get to communication that offers utility? Modern communication should be two-way with the audience you're looking to reach. I look at a project for tentree, we built that and we detected [more than 200] wildfires [before they became problems in] the Canadian marketplace. That's something to be proud of. It's good commerce, good brand work and being a force for good. From a profit standpoint, we are growing in a very challenging economy. We're helping our clients figure out ways to be more efficient. We are in challenging economic times. What does that do for Tag Americas, and what is your plan to get through it? Tag is uniquely positioned, particularly in challenging economic times, because we are the only production partner that offers a true end-to-end solution, both content production and the sourcing part. We can blend the physical and digital worlds, and oftentimes we can realize on the sourcing side savings for our clients that can then actually fund the content side. Clients are nervous about spending money. They don't know where business is heading, and the ability to offer value without sacrificing quality is very attractive, and that is Tag's sweet spot. Where do you see Tag Americas in five years? Great question. We should ask AI. (laughs) I think the marketing industry needs companies like Tag on steroids. I think production needs to be the great neutralizing force in marketing so that media agendas don't go too far on one extreme, or creative agendas don't go too far off on [another] extreme. Production and being an intellectual blood bank for clients from a production standpoint keep that pendulum right in the middle. And that's got to be the goal of production. Oftentimes, production partners have been thought of for the last mile, and it's kind of been like an Easy-Bake Oven. A brief goes in and, ding: Three weeks later, there's content and assets and they're trafficked out. That's kind of to me [something from] yesteryear, and where it's going in five years is to be the equalizing force so that no agenda runs wild and every dollar is in check. And then I would say that in five years, we need to be guaranteeing outcomes for the clients that we're paid to represent. We need to deeply understand what is going to change their business, what their KPIs are, and then we need to be able to model using technology work that's going to win in the world. Creators are a big part of today's marketing strategies, but using AI in conjunction with them can make influencers' work more impactful. Here's how to take advantage of creator data to elevate your influencers' work. When you're looking for examples of successful companies, it's tempting to look at tech firms in Silicon Valley. While they have done well in terms of profits and products, many have a 'bro culture' that may not be worth emulating. Here's how to use the best parts of Silicon Valley's growth playbook—and still value diverse viewpoints. Which reality TV show franchise just named the cast for its 50th season in 2026? A. The Bachelor B. Big Brother C. Survivor D. Real Housewives See if you got the answer right here.
Trade Arabia
11 hours ago
- Business
- Trade Arabia
MENA records 225 M&A deals worth $46bn in Q1
The MENA region witnessed 225 mergers and acquisitions (M&A) deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31% increase in deal volume when compared year-on-year. Total deal value rose by 66% to $46 billion in Q1 2025, when compared to $27.6 billion in Q1 2024, said the latest EY MENA M&A Insights 2024 report. Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52% of total deal volume with 117 deals and 81% of total deal value at $37.3 billion. The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, MENA EY-Parthenon Leader, says: 'In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment.' 'This growth is also reflected in the steady increase of domestic M&A activity, which contributed 48% of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the IMF projection that MENA GDP will grow by 3.6% this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.' In the MENA region, the UAE remained the top target country with 63 deals totaling $20.3 billion in Q1 2025. Kuwait ranked second in terms of deal proceeds, reaching $2.3 billion, driven by two major transactions in the Diversified Industrial Products and Power & Utilities sectors. During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at $6.4 billion, while the US remained the preferred target destination in terms of deal volume. Sovereign Wealth Funds (SWFs) like ADIA, PIF, and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals. Domestic M&A activity rise In the first quarter of 2025, M&A activity in the MENA region witnessed a 20% increase in deal volume while deal value rose significantly reaching $8.7 billion as compared to $1.69 billion recorded in Q1 2024. The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37% of total domestic deal value and 27% of total domestic deal volume. The largest domestic deal during the first quarter of the year was a $2.2 billion acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40% stake in Khazna Data Centres, a digital infrastructure provider. Intraregional deals involving the UAE, Kuwait, and Saudi Arabia (KSA) accounted for 83% of total domestic deal value and 56% of total domestic deal volume, highlighting strong intraregional M&A activity, particularly in the technology, industrials, and real estate sectors. MENA region remains an attractive The MENA region continues to emerge as one of the most attractive destinations for foreign direct investment during the first few months of 2025, with inbound deal volume surging by 21% and deal value reaching $17.6 billion, when compared to $2.5 billion in Q1 2024. The UAE remains the leading destination for foreign direct investment in the MENA region in Q1 2025, capturing 53% of total inbound deal volume and 99% of the total inbound deal value. Austria was the top investor country, accounting for 94% of total inbound deal value, largely driven by a major transaction in the chemicals sector. Diversification efforts During the first three months of 2025, outbound deal volume increased by 63% when compared to Q1 2024, with a total deal value of $19.7 billion, contributing 43% of overall deal value. The UAE and KSA led the outbound investment from the MENA region, accounting for 77% of total deal volume and 94% of total outbound value. Though chemicals and oil & gas dominated in outbound deal value, outbound deal volume was primarily focused on technology, diversified industrial products, and professional services. This trend reflects the region's broader diversification strategy into high-growth global sectors. The UK was the leading destination for outbound M&A deals from MENA by volume, recording 13 transactions in Q1 2025. Canada and Peru together contributed 50% of total outbound deal value driven primarily by a major transaction in Canada's chemical sector. ADNOC and Austria's OMV AG has agreed to acquire Canada's Nova chemicals for US$6.3b by holding 46.94% each in the newly formed Borouge International Group. Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions. The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.' -TradeArabia News Service
India Gazette
11 hours ago
- Business
- India Gazette
Increased capex, focus on rare earth minerals may shape India's 'Viksit Bharat' journey: EY report
New Delhi [India], May 28 (ANI): An increased capital expenditure and focus on rare earth minerals may shape India's Viksit Bharat journey, according to a report by EY. It suggested that policy measures must balance consumption support with increased capital expenditure. Also, India's long-term growth relies on building resilience through self-reliance in critical minerals. Critical minerals are those minerals that are essential for economic development and national security. In June 2023, India has identified at least 30 critical minerals taking into account its requirements for sectors like defence, agriculture, energy, pharmaceutical, and telecom. India has launched a National Critical Mineral Mission in 2025 to address this, but further support from both the public and private sectors will be important, EY said. Strengthening partnerships with countries rich in rare earth resources could also help reduce supply chain risks. According to the EY Economy Watch May edition, India's economic growth for 2025-26 is expected to moderate, influenced by a mix of global and domestic developments. Yet, the EY report said India remains one of the fastest-growing major economies, supported by resilient domestic demand, easing inflation, and an accommodative monetary policy linked to prospects of revival in private investment. As per EY report analysis, global factors are largely contributing to a cautious outlook. These include continuing supply chain disruptions, the impact of recent tariff measures by the US, and broader uncertainties in global trade and geopolitical developments. EY report suggests that in the near term, India may need to rely on a balanced mix of monetary and fiscal policies for sustaining the growth momentum. On the monetary front, a continuation of the ongoing rate cut cycle could provide support to consumption and investment. On the fiscal side, reviving the momentum in public investment especially the government's capital expenditure, which witnessed a moderation in growth in 2024-25, will be important to sustain economic activity. DK Srivastava, Chief Policy Advisor, EY India said, 'While India's medium-term prospects remain strong, current global headwinds and domestic challenges call for supportive fiscal and monetary policies. Over the long run, sectors linked to technology and clean energy will play a key role in driving sustainable growth. Building resilience through self-reliance in critical minerals, especially in rare earths, can help India move closer to its Viksit Bharat aspirations.' (ANI)
