First published: 04-Jun-2024 08:04:58Staff WriterVenture capital (VC) investments in the Middle East and North Africa (MENA) region could rebound this year after a slowdown, thanks to a low interest rate environment, according to a new report. The consultancy firm noted that, as interest rates are expected to fall, initial public offerings (IPOs) and deal-making are poised for a turnaround. “This impending shift has the potential to breathe new life into initial public offerings (IPOs) and M&A deals, reigniting investor confidence and deal-making momentum,” the firm said. If interest rates drop, borrowing costs could be cheaper and this will incentivise businesses to “pursue expansionary strategies such as mergers and acquisitions,” according to Alexey Bogdanov, Partner at Tenet Consulting. Lower interest rates generally translate to cheaper borrowing costs,” he said.

Source: The North Africa Journal June 04, 2024 04:52 UTC