MENA M&A Deals Surge 23% to $69.1bn in 2025, Driven by UAE and Saudi Arabia

In 2025, mergers and acquisitions (M&A) in the Middle East and North Africa (MENA) region experienced a significant increase of 23%, reaching a total value of $69.1 billion. This growth was primarily led by the United Arab Emirates (UAE) and Saudi Arabia, with cross-border transactions achieving a five-year peak. The Gulf Cooperation Council (GCC) maintained its dominance in regional M&A activity, recording 500 deals valued at $65.9 billion. This surge was attributed to a favorable investor sentiment, an optimistic economic outlook, and a notable rise in cross-border investments. Cross-border transactions played a crucial role in this growth, representing 54% of the total volume and 76% of the overall deal value, marking the highest levels seen in five years. The UAE emerged as the site of the largest M&A transaction of the year thus far, with OMV and Borealis acquiring a 64% stake in Borouge for $16.5 billion. Following this, the Abu Dhabi National Oil Company (ADNOC) secured a 46.94% stake in NOVA Chemicals for $6.3 billion, which stands as one of the largest petrochemical deals globally. Additionally, Saudi Aramco's $3.5 billion acquisition of Peruvian fuel distributor Primax S.A. highlighted Saudi Arabia's increasing focus on international investments. Outbound deals constituted the largest share of M&A value, totaling 189 transactions worth $28.5 billion, with Canada attracting the highest outbound value at $7.1 billion. The United Kingdom led in terms of outbound deal volume. Inbound investment also saw a robust increase, with 160 inbound deals valued at $23.8 billion, reflecting a year-on-year rise of 25% in volume and 34% in value. Austria emerged as the leading investor, contributing significantly to the inbound value primarily due to the Borouge acquisition. The UAE retained its status as the top investment destination in the region, with 171 inbound deals worth $29 billion. Both the UAE and Saudi Arabia were among the most active bidders, collectively accounting for 85% of the total outbound deal value. The chemicals and technology sectors were particularly prominent, leading regional M&A value with investments of $23.9 billion and $12.2 billion, respectively, driven by a focus on innovation and industrial transformation. Domestic M&A activity also increased, contributing 46% of the total volume across 300 deals valued at $16.8 billion, with a concentration in technology, healthcare, and financial services. Sovereign wealth funds (SWFs) played a significant role in this landscape, executing 22 transactions in the first nine months of 2025, including 17 outbound deals. Investments were primarily directed towards technology, consumer products, and professional services, with the UAE and Saudi Arabia continuing to be key hubs for sovereign investments. Moreover, government-related entities (GREs) in the MENA region were instrumental in outbound activities, completing 39 deals that accounted for 66% of GRE transaction value, including 22 from the UAE and 11 from Saudi Arabia. This trend underscores the influence of sovereign-backed investors in shaping regional diversification strategies. Beyond the GCC, Egypt and Kuwait emerged as notable target and bidder countries, with Oman and Qatar also featuring prominently, indicating a broadening M&A landscape across the MENA region.

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