The Middle East and North Africa’s mergers and acquisitions (M&A) scene showed significant growth in the first half of 2025, with the UAE and Saudi Arabia leading in deal value.
As per the latest EY Mena M&A Insights report, 425 deals worth $58.7 billion were recorded in H1 2025, a 31% increase in volume and a 19% rise in value from the previous year.
The UAE and Saudi Arabia attracted $27.9 billion in investments, solidifying their roles as key players in the region’s deal-making landscape. The UAE accounted for $25.4 billion, reinforcing its status as a top destination for international investors, while Saudi Arabia secured $2.5 billion, highlighting its diversification efforts into chemicals, technology, industrials, and real estate. These two economies contributed nearly half of the region’s total deal value, underscoring their influence on the MENA investment scene.
The period saw an unprecedented increase in cross-border transactions, reaching a five-year high. Cross-border deals made up 233 of the 425 total transactions, with a combined value of $45.9 billion.
This represented 55% of total deal volume and 78% of total value. The chemicals and technology sectors were significant contributors, accounting for 67% of the cross-border deal value. The largest deal was Borealis AG and OMV AG’s $16.5 billion acquisition of a 64% stake in Borouge, highlighting the UAE’s industrial and chemicals sector’s attractiveness to global capital.
Analysts note that this increase reflects the region’s resilience and adaptability amidst global challenges. “The strong performance in the first half of 2025 highlights MENA’s M&A market’s strength, dynamism, and resilience,” said Brad Watson, MENA EY-Parthenon leader. “We are seeing record-breaking cross-border activity as investors move beyond short-term volatility, pursuing scale, innovation, and new market opportunities. The UAE, in particular, continues to attract global capital, supported by a stable regulatory framework and focus on economic diversification, while regional partnerships with Europe, Asia, and North America open new growth channels.”
Domestic and inbound M&A also saw robust growth. Domestic deals accounted for 192 transactions worth $12.8 billion, representing 45% of total volume and 22% of total value, nearly doubling year-on-year. Diversified industrial products and technology were the primary drivers. The largest domestic deal was Group 42’s $2.2 billion purchase of a 40% stake in Khazna Data Center, emphasizing continued investor interest in digital infrastructure.
Inbound activity surged, with 107 deals worth $21.5 billion, a 53% increase in volume and more than threefold rise in value from $6.4 billion in H1 2024. The UAE again stood out, accounting for 50% of inbound deal volume and 98% of inbound value. Austria was the leading investor, driven largely by the Borouge chemicals sector transaction.
Outbound deal-making also saw steady growth, with 126 transactions valued at $24.4 billion, up 30% in volume from the previous year. The UAE and Saudi Arabia were central, making up 87% of outbound value. Key deals included Adnoc and OMV AG’s acquisition of Canada’s Nova Chemicals and Saudi Aramco’s $3.5 billion purchase of Primax in South America, showing how Gulf energy and industrial leaders are expanding their global reach.
A notable feature of the first half was the significant role of sovereign wealth funds and government-related entities, contributing $21 billion across 54 deals. Entities like the Abu Dhabi Investment Authority (Adia), Public Investment Fund (PIF), and Mubadala were active, focusing on chemicals, technology, and industrial sectors aligning with long-term national diversification agendas.
Anil Menon, MENA EY-Parthenon head of M&A and Equity Capital Markets leader, observed that the region’s fundamentals remain highly attractive for investors. “MENA’s deal-making thrives in 2025, reflecting investor confidence in the region’s long-term fundamentals. Stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity.”
