According to a Barclays Plc executive, mergers and acquisitions (M&As) in the Middle East would be driven by sovereign wealth funds and regional transactions despite the economic recovery in the Persian Gulf 

He said in an interview, "M&A is back. Money is cheap and companies are feeling better about growth through acquisitions."  "M&A is back. Money is cheap and companies are feeling better about growth through acquisitions." "There are two types of M&A happening in this region - sovereigns looking at acquisitions abroad to diversify and regional consolidation," he further added.

Data compiled by Bloomberg showed that there was a 15% increase in deals in the Middle East and Africa this year, valued at USD39.1 billion.  This was its highest during the same period in 2007. The biggest transactions involved UAE companies that were seeking to  benefit from a revival in property prices, retail and tourism.

Dubain and other state-backed firms had been preparing to repay around USD20 billion debt by 2014. This year was called a "pivotal year" for the emirate, said Moody's Investors Service. Four years ago, Dubai was almost at a brink of default afer a property crash spurred by the 2008 global financial crisis. Abu Dhabi and UAE Central Bank rescued the emirate with USD20 billion bailout.