Gulf companies to see increased restructuring

PwC_comPWC expects the growth of Middle East business this year to reach 25 per cent. (Image source: PwC)Companies in the Middle East are set to witness augmented restructuring as they take a studied approach towards organising their businesses, according to PricewaterhouseCoopers (PwC)

"Many companies are taking a cue from successful reorganisations and looking hard at their own businesses," said PwC Middle East managing partner and head of markets Fouad Alaeddin.

Dubai World's US$25 billion debt restructuring deal, finalised last year, was the largest successful restructuring project in the region.

Alaeddin said he expected growth of business in the region to reach 25 per cent this year, followed by a similar rate of expansion in 2013.

According to the PwC report, consulting and accounting firms would enjoy a revenue boost from restructuring advisory work.

Restructurings proliferated in Middle East in 2009 as banks pulled back during the financial crisis and many companies were unable to repay or refinance debt.

While the focus then was on abating the crisis, companies have now been taking a renewed approach towards reorganising, as they take fresh look at their businesses.

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