Investment banking fees in the MENA region experienced a significant decline of 19% in the first half of 2026, falling to an estimated $757.1M. This downturn marks a three-year low, extending the decline noted in Q1 as the Iran war continues to affect growth in the Gulf.
JP Morgan Leads Despite Fall
According to the latest MENA Investment Banking H2 report from LSEG, JP Morgan emerged as the leader in investment banking fees for H1 2026.
The firm generated $71M, which accounted for a 9.4% share of the total fee pool. This achievement propelled the firm ahead of HSBC, which had held the top spot in H1 2025, relegating it to third place.
ECM Hit Hard
Within the sector, underwriting fees in equity capital markets (ECM) suffered the steepest declines, plummeting 57% year-on-year to a five-year low of $69.5M.
The second quarter of 2026 witnessed a scarcity of initial public offerings and follow-on offerings, while debt capital markets (DCM) displayed resilience, with underwriting fees maintaining last year’s levels at $297M.
M&A Fees Fall 19% YoY
Advisory fees from completed mergers and acquisitions amounted to $203.5M, representing a 19% decrease compared to H1 2025, while syndicated lending fees fell 16% to $187.4M: the lowest first half total since 2023.
UAE Dominates GCC Earnings
The UAE contributed over half of the total investment banking fees, representing 55% of the amount, followed by Saudi Arabia at 25% and Qatar at 7%. JP Morgan noted a 21% year-on-year increase in its investment banking fees, positioning it among the few banks to report growth in H1 2026.
Citi ranked second with a 7.4% share, generating $56.1M, despite a 2% decline in fees. HSBC’s investment banking fees fell by 48% to $36.7M, resulting in a 4.9% total wallet share. Barclays recorded the most substantial growth, achieving a 240% year-on-year increase with fees totalling $33.1M for H1 2026.
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