Increased merger and acquisition activity in the MENA region during the first half of the year, totaling $59 billion in deals, according to EY.
In the first half of 2025, the MENA (Middle East and North Africa) mergers and acquisitions (M&A) market experienced a significant surge, recording a 149% increase in value to $115.5 billion - the highest first-half total since 1980.
The chemicals and technology sectors dominated cross-border deal value, contributing 67% of the total. The UAE was the top destination for inbound deals, capturing 50% of the volume and 98% of the value. The UAE and Saudi Arabia accounted for 87% of the total outbound value in outbound M&A.
The UAE attracted $25.4 billion worth of deals, while Saudi Arabia recorded $2.5 billion. The largest domestic transaction in the UAE was Group 42's $2.2 billion acquisition of a stake in Khazna Data Center.
Inbound M&A also rose significantly, with a 53% increase in volume and a 235% jump in value, totaling 107 deals worth $21.5 billion. Austria emerged as the leading investor, contributing 77% of inbound deal value, mainly due to a major chemicals sector transaction.
Domestic M&A activity in the first half of 2025 saw a 22% increase in volume and a 94% surge in value, totaling 192 deals worth $12.8 billion. The key sectors for domestic M&A were diversified industrial products and technology, accounting for over half of the domestic deal value.
Outbound M&A from the MENA region increased by 30% in volume, totaling 126 deals worth $24.4 billion. Government-related entities and sovereign wealth funds contributed $21 billion across 54 deals in outbound M&A.
Cross-border transactions within the MENA region reached their highest level in five years, making up 55% of total deal volume and 78% of total deal value. Geopolitical uncertainty may be the new normal, and dealmakers are adapting by finding ways to generate long-term value.
While North America is lagging, Europe, Asia, and the Middle East are seeing renewed confidence and momentum in dealmaking. The MENA M&A market is expected to continue growing, particularly in technology, energy transition, and cross-border investments. MENA M&A rose 19% in the first half of 2025 to $58.7 billion. No specific information is available about government agencies or sovereign wealth funds with notably high involvement in M&A transactions in the MENA region during the first half of 2025.
WTW reported 339 deals worth over $100 million worldwide in the first half of 2025, slightly up from 332 a year earlier. Compared to the first half of 2024, cross-border deal volume rose 40%, while value increased 7%. The MENA M&A market is poised for continued growth and could become a significant player in the global M&A landscape.
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