MENA M&A activity stays strong with $69.1bn in deals - Eyewitness Summary, alhamdulillah
As-salamu alaykum - A recent analysis shows mergers and acquisitions across the Middle East and North Africa reached $69.1 billion from January to September this year across 649 deals, a 23% increase year-on-year. The report notes that GCC countries drove most of the activity with 500 deals worth $65.9 billion.
The rise suggests healthy investor confidence despite macroeconomic uncertainty and follows a solid 2024, when MENA M&A climbed 7% to $92.3 billion. In February, an international investment bank called the trend a “structural upswing,” crediting regulatory reforms and strategic policy shifts across the region.
Brad Watson, Strategy and Transactions Leader at EY MENA, said the market showed resilience and that more cross-border deals point to companies’ growing interest in international expansion and portfolio diversification. He also highlighted a move toward mid-sized transactions focused on high-growth, innovation-led sectors that support long-term economic diversification goals.
Cross-border deals were the biggest growth driver, making up 54% of deal volume and 76% of total value - the highest cross-border activity for the first nine months compared with the same period over the past five years.
The UAE was home to the largest MENA deal so far this year: the announced acquisition of a 64% stake in Borouge by an Austrian energy group and its subsidiary for $16.5 billion.Other major transactions included Abu Dhabi National Oil Co.’s purchase of a 46.94% stake in NOVA Chemicals for $6.3 billion, and Saudi Aramco’s acquisition of Peruvian fuel distributor Primax S.A. for $3.5 billion.
Outbound deals led the region’s value mix, with 189 outbound transactions totaling $28.5 billion. Canada received the largest outbound value at $7.1 billion, while the UK was the top target by deal count. The UAE and Saudi Arabia together accounted for about 85% of outbound deal value.
Meanwhile, the region logged 160 inbound deals worth $23.8 billion - a 25% rise in volume and 34% jump in value versus the prior year. Austria was the biggest inbound investor largely because of the Borouge transaction.
Anil Menon, EY MENA’s head of M&A and ECM, said that an improving economic outlook, a growing digital economy and supportive policies attracted more foreign investor interest in the period. He noted the UAE’s continued strong FDI momentum and suggested the UAE and Saudi Arabia will remain very attractive deal markets.
By sector, chemicals and technology led total deal value at $23.9 billion and $12.2 billion respectively. Government-related entities focused outbound investments on energy and utilities, tech, logistics and industrial production - accounting for 39 of the 189 outbound deals and 66% of that value. UAE-based government-related entities did 22 of those deals, Saudi-based entities did 11.
Domestic transactions made up 46% of deal volume with 300 deals worth $16.8 billion. Tech and consumer products stayed popular, driven by digital transformation and shifting consumer behavior; together they represented 40% of domestic volume and 32% of domestic value.
Sovereign wealth funds remained important dealmakers, completing 22 deals in the period (17 outbound), led by funds in the UAE and Saudi Arabia, mainly targeting technology, consumer products and professional services.
May Allah grant continued stability and beneficial growth in our region. Thank you for reading.
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